Lack of options that meet the 2% (or even 1%) rule in Baltimore

[Greg Parks]

I've been running the numbers on various properties in the City of Baltimore, as I'm looking to start out as a house-hacker once I've tied-up the right property.  For the safe bet neighborhoods in B'more (Canton, Fed Hill, Fells Point, and to a lesser extent Ridgley's Delight) few, if any, properties support even the 1% rule.  Should I avoid purchasing an investment property in any of these neighborhoods until rents improve/property values decline?  

[Ray Slack]

I agree with Ned.  You are looking at A rated areas of Baltimore.   I own several properties all in lower income areas of baltimore city that I would never live in myself but  they are 2x and a few 3-4x properties.    You can buy a 3/2 in a lower income neighborhood that rents for $1300-$1400 for $30k to $40k or you can buy a 2/2 in the A rated neighborhoods for $200k that rents for $1500 to $1600.  Now my lower income area properties while being cash cows will probably go up in value 1-2% per  year as opposed to the higher appreciation in A rates areas.  Give me the Cash Flow!!