Investing in Baltimore?

Question

Hi All,

Any of you actively investing in Baltimore? Would you recommend Baltimore for a long term Buy and Hold Real Estate? Any suggestions and tips to watch out for will be hugely useful to me.

Thanks!

Joe Norman · Answer

My advice to anyone investing in Baltimore is to be very very very careful when looking at comps to estimate ARV and/or rent rates. Values will vary dramatically neighborhood by neighborhood, and in a lot of cases block by block. Make sure someone with experience in the city who you trust is double checking your numbers.

Other than that piece of advice, go for it! There is a lot of opportunity for long term, cash flow investments in Baltimore. Good luck!

Other than that piece of advice, go for it! There is a lot of opportunity for long term, cash flow investments in Baltimore. Good luck!

Laticia Braxton · Answer

Hi Rocky,

There are several areas of Baltimore City and Baltimore County that are good for a B&H strategy.  I suggest that you connect with a seasoned investor-friendly agent, to explore those areas.  He/she will know where their clients have had the most success.  Keep in mind that investors typically have success when investing in areas within great school districts as that is often times one of the most important factors to renters with school aged children.

Unless you plan to self-manage, I would also suggest that you ask your agent for local property management company recommendations.  You should also search for and interview PM companies on your own and interview multiple companies and check their references before making a final decision.

Lastly, if you're not using a licensed agent, watch out for "deals" that seem too good to be true.  Run your numbers twice, check the property for damages and repairs needed (if you can) and take your contractor with you for repair cost estimates. Always do your own due diligence and realize that Baltimore is a very competitive market.

Best of luck to you!

Laticia

Joe Norman · Answer

4052 Edgewood Rd isn't in a neighborhood I'd invest in based on my personal preference to be on the East side, but I would probably consider it if I lived closer (I'm North East of the City). That said $125k seems a little pricey for the area, but it should cashflow even at that price.

Pretty much the same answer for 3701 Ferndale Ave, except that I would shy away from detached homes because the exterior maintenance is more extensive (and therefore expensive).

I think you're on the right track!

Alan C. · Answer

Baltimore can be a great place, but as others have already stated, you really need to know the lay of the land before making an investment that could cost you thousands of dollars.

If you're not from the area, you should connect with Meetups and REIAs in the area to find out what the pros are doing. The better groups are having online meetings which can allow you to get involved without traveling to the city. Full disclosure: I'm president of Mid-Atlantic REIA in Baltimore

Ned Carey · Answer

@Rocky R. That particular link is in a decent area and I would be wiling to own a rental there.

But you can't tell from the picture the quality of the rehab. These are old houses and it's important to know if the wiring, plumbing and HVAC were updated. I see radiators so I doubt is has AC.

Ozzy Sirimsi · Answer

Work with an agent who invest in the city. There are some in here, there are many out there.

Otherwise you will be open to lose money.

Rocky R. · Answer

Thanks for the replies.

When we say "risk of not knowing market" what exactly do we mean. As an example, some home recently got listed --> https://www.redfin.com/MD/Baltimore/4052-Edgewood-St-21215/home/10907084 priced at $120K.

Rental estimate calculators give an estimate rent as $1350 which is >1%.

As a newbie investor, homes like these seem like an "investable options". Am I missing anything large and listing like these can I go very wrong?

Same goes to another random listing I was tracking but got sold out due to my inability to make decision --> https://www.redfin.com/MD/Baltimore/3701-Ferndale-Ave-21207/home/11214982 (Is a listing like this something I could have considered?)

I thought citing couple of examples I tracked might help me learn better. Any comments from Baltimore experts would really help me. (Note: I just pulled 2 example but there are multiple of properties like these listed on MLS in Baltimore area.) Am I even looking in the right direction? :)

Ned Carey · Answer

@Rocky R. Baltimore can be a great place to invest. However if you are not from this area it can be a tough place to learn.  The best deals go to the investors that know the market the best. it is much easier to learn a market near you.

Investing in Baltimore?

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