General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated about 7 years ago, 11/14/2017
Baltimore buy and hold market.
I am encouraged to research further into the Baltimore buy and hold rental market due to the rent to value numbers. My intention is to buy and hold a stack of SFH's in a good cash flow area. It appears from my initial research that its possible to find tenants that stick around for a year or more in a C area in Baltimore and still achieve 20% net cash on cash? If not in Baltimore can anyone beat the numbers in any other areas where this is conceivable?Regards Alan
Dont mean to hijack the thread to get off topic, but @Terry Royce is XRF the name of a company that does testing?
Jeff
@Terry Royce How much does making a property lead free typically cost? If you don't mind me asking, what company do you use for this?
Contact @Joel Lurz for lead issues or concerns. His wife Tonya doesn't have a profile on here but she is very knowledgeable. I met her in an Home Inspection CE class this month which she should have been the instructor.
Originally posted by @Tiesha M.:
@Terry Royce How much does making a property lead free typically cost? If you don't mind me asking, what company do you use for this?
Well it depends on how much lead paint is in the house. We had one of our rentals tested and were surprised to find out it was lead free (on the inside, Known as "Limited lead free" in MD) Some houses have so much it is not worth the trouble to remediate. Sometimes it is just a modest amount of trim to be removed
Lead paint was used because it was more durable. It was usually used for windows, doors and trim, the areas that get the most wear.
Regular inspections with pictures showing the property and paint in good condition can be a valid defense in lead paint suits. One owner I know was sued with just the standard lead certificate - not lead free, and he got the other party to settle for $2,000 because he had such good documentation of the condition of the house. He had pictures of inspections of about every 6 months. I am not suggesting you go that route just reporting about a case I heard of.
PS I would figure several hundred to several thousand to make the typical row house lead free. The newer the house the less lead it is likely to contain.
I have a property in the sandtown area where you are looking. This is a big site and Im the only buy and hold market rent landlord that replied to your post. Ask yourself why more Baltimore landlords didnt reply.
Originally posted by @Robert Carl:
I have a property in the sandtown area where you are looking. This is a big site and Im the only buy and hold market rent landlord that replied to your post. Ask yourself why more Baltimore landlords didnt reply.
Robert, I am curious what your point is about Baltimore landlords not replying is?
Also myself and Terry Royce both buy and hold in the city. Christina will as soon as she finds the right deal.
I'm a buy and hold in Baltimore. I've just closed on a property in 21229 and I'm excited about it. Remember it's not about where you would live but about that you are providing a nice place for someone that loves the area. Alan Charles Robert Carl
Where in Baltimore do yall invest? There are few good landlords in Baltimore that are not in the popular areas. I know landlords in the first areas that Andy mentioned that do market rents and have good houses.
So many people claim Baltimore has so many people doing big things in real estate. Why is there so many vacants and prices so low? It speaks for itself.
I dont know any good landlords in the first areas that Andy mentioned that do market rents and have good houses. I dont even see any good looking houses in these areas. I see blocks of vacants and landlords and people leaving and walking away from houses in Baltimore.
- Mahalo!
To go back to your original question, which was "how do you pick a neighborhood" - it's personal preference. Some people love the trendier neighborhoods and some love the presumed (not actual) war zones (there are places where you can't give the property away and no level-headed person is going to take that on).
Unfortunately you are in Hawaii so that makes it sort of difficult to jump in the car and drive around, though that's a problem I'd like to have, lol. Either return for a visit or have seriously trustable boots on the ground. I would NEVER buy anything in Baltimore (or anywhere else for that matter) sight unseen.
@Christina R. , I'm with you. I come back about 1-2 times per year, and I am moving back in 2016 after my assignment out here is up. I love Baltimore and the surrounding areas, and my family is in Howard and Montgomery Counties. My plan right now is to sit on the sidelines until 2016.
I was posing the question because given the vast swaths of low-income and blighted neighborhoods, how does one pick? I've only lived in good or up and coming neighborhoods, so my perspective on the Section 8 and other low income rentals is virtually nonexistent. I'm not even kicking tires at this point, but I would like to understand as much as possible before I hit the ground in 2016.
@Robert Carl , Baltimore is struggling. The city has a lot of potential, but often can't get out of its own way. Part of its politics, part of it's the cycle of drug use, poverty, teenage pregnancy, violence, etc that in turn leads to high unemployment, poor schools and blight. 50 years of poor tax revenue have left the city with crumbling infrastructure. A lot of money left town and moved to the 'burbs. Things are coming along, however, and people are doing good things. In 2005, the area between Penn Station and Charles Village was a war zone. You drove through with your windows up. That's slowly starting to change, but often it's two steps forward and one step back. Before the crash, my dad was convinced that the area between Reservoir Hill and Mondawmin would experience a renaissance, and it's happening, but slowly. From what I am seeing, the slumlords are getting pushed out by responsible investors, slowly.
Originally posted by @Robert Carl:
Where in Baltimore do yall invest? There are few good landlords in Baltimore that are not in the popular areas. I know landlords in the first areas that Andy mentioned that do market rents and have good houses.
So many people claim Baltimore has so many people doing big things in real estate. Why is there so many vacants and prices so low? It speaks for itself.
I invest all over the city. Brooklyn, Yale Heights, near Pimlico, Belair Edison, etc.
There are so many vacants because Baltimore used to have a population of about 1,000,000. Now is is more like 1/2 that. It is an industrial city that lost residents to the suburbs. This is a process that went on for decades. It has slowed perhaps even stopped or reversed. Not sure exactly.
Prices are low because no financing is available. There is demand for rental properties if buyers could get financing.
Do understand that renting in baltimore city is actually not difficult, if you account for who you rent to. 1. Cya. (Lead free)...now that problem is solved...not that expensive relatively speaking ( lead can also be encapsulated) 2. Upfront money (first last security or exemplary qualifications) getting money upfront gets you to the eviction without being owed money. 3. Make your house rock solid. "Really nice cage". Everything clean, water tight. Nothing worth stealing (copper, radiators, etc)
Many lower income good rentals, and the price make them more than worth the hassle, just make sure you're prepared for it.
Andy,
Baltimore can change block by block - however I don't believe it is hard to figure out. You just need to network and drive the areas. It does take some time but there is no secret to it.
Drive from one block with nicely manicured lawns to the next with with boarded up properties, weeds in the cracks of the sidewalk, trash, and people sitting on the door stoop because they have no job and it is easy to see why one block is better than the other.
Ned
since you have family here and return with regularity, start dedicating parts of your visits to driving around and then when you are back permanently you'll have narrowed your focus and can explore those areas in detail. As mentioned, the networking is so helpful so plan to be involved with the local REIAs and Meetups and you'll find the people that will connect you to properties. Enjoy a Lappert's ice cream for me!
@Christina R. right now it's all about the Shave Ice. Dare I say it's better than a Snowball?
Thanks all for the good advice. Next time I'm home, I'll dedicate a research day or two.
If you are going into any areas that are suspect find some landlors in the area before you invest. Make sure that they can show you proof in numbers, units, and how they became successful in that area. Many of the area that have turn around Druid Hill, Modawmin, and Charles Village took 20yrs or more before they turn around. There are alot of states that generate more money for less hassle and appreciation to buy and sell to trade up.
Originally posted by @Robert Carl:
If you are going into any areas that are suspect find some landlors in the area before you invest. Make sure that they can show you proof in numbers, units, and how they became successful in that area. Many of the areas that have turned around Druid Hill, Modawmin, and Charles Village took 20yrs or more before they turned around. They were murder centrals before that. Be prepared for that. There are alot of states that generate more money for less hassle(i.e. lower taxes, lower water bills, less government fees, and more appreciation to buy and sell to trade up.
@Account Closed
You actually state facts on how to rent in Baltimore and of being aware of the faults.
I don't think it's difficult at all to find financing until you get to a certain scale. Starting out if you have good credit and income you can finance your properties through conventional loans. I have a business partner and one of the things we do is trade off on who gets the loan. We are both on the title, but only one of us is on the mortgage. Hence we can get 2x the mortgages! Eventually debt to income will be a problem but starting out you should have an easy time getting financing.
How easy would it be to cash-out refi a row home (3/1 or 3/2) in Belair-Edison? Thinking about purchasing one for around $85k without much work needed, and I see some comps for around $115k. I'm thinking @ 75% LTV I would be able to cash out refi my initial $80k plus maybe a few thousand of repairs. Thoughts on if this is realistic or if I'm being too naive here? Trying to nail down my investment strategy and I would greatly appreciate some advice from those that have traveled a similar path before me!
