Out of Town Investor Looking at Baltimore SFHs

[David Johnson]

Hey everyone,

I'm a real estate investor from NYC looking to purchase a single family home in Baltimore to force appreciation through renovation and establish solid cash flow through renting. 

I've been looking at the neighborhoods around Charles Village (Barclay, Harwood) and it seems like I'd be able to acquire a property for less than $60K and fix it up for less than $30K. I'm ineligible for financing (I currently have two mortgages on properties in DC), so I'd have to go the all-cash route and possibly work out financing down the road. I'd be using contractors to do the renovation and already have some contacts (but would love to get some additional recommendations)/

A realtor I've consulted with has told me that a good perimeter to work in is bounded by St. Paul St. to the west, Greenmount Ave. to the east, 29th St. to the north, and 20th St. to the south. I'm curious what everyone's thoughts are on this area (i.e. any experience living/investing there, what the typical renter is like, what is the market rent for a 3BD SFH, prospects for the future of the neighborhood, etc.) and if that seems like a decent strategy.

From an outsider's perspective, it seems like Baltimore is on the upswing and that it's a wise medium-term investment, but I'm willing to concede that my experience is limited to DC which is a fairly unique case. Let me know what you guys think when you get a chance. Thanks in advance!

[Tim Youse]

You can still cash flow anywhere in that area, but within that threshold,  the properties to the west (closer to St Paul's) and north (closer to 29th st) will be the most valuable as you'll be closer to JHU. Nothing wrong with the west side of St Paul's or north of 29th. There is a noticeable decline in home values as you get closer to greenmount and south of 25th St.