Baltimore or Northern Virginia

[Richmond Williams]

Hey everyone, new to BP, so im excited to be here!

I plan on buying my first home soon and house hacking once I find a deal. From what i’ve researched it looks like Baltimore would be a much better place to start investing compared to NOVA which is where i’m originally from.

Does anyone one house hack in the baltimore area and can share some of their experiences with it? And if anyone is familiar the two areas, do you think baltimore is the better starting point? From what i've seen the purchase price to rent in Baltimore is much better then in VA.

[David Fernandez]

Hi @Richmond Williams, I live in NOVA and invest both in Baltimore and NOVA. 

If you are buying a house hack, NOVA hands down. You can't compare the long-term appreciation (asset value and rent), among many other pros. If you are buying an investment property, you need to really look inside and see what are your goals. Once you answer this question, you may realize that one place may be a better fit than the other

Before buying something in Baltimore, you either need to work with a great agent or know the city well. Prices are lower than in NOVA, but property taxes are WAY higher. Also, management is more complicated and it is more expensive to manage (lead certs, city licenses, fees, taxes, vacancy, etc). 

Your cash flow potential in year one is higher in Baltimore, but this may not be so true after 3-5 years. If you consider property appreciation, your wealth will increase more rapidly by investing in NOVA.