How analyze Baltimore City Property Rentals

[Maria McLemore]

Hey Bigger Pockets Community! 

I am new to investing and I am interested and buying rental property in Baltimore.   A real estate agent brought to my attention three rentals available for purchase that are already tenant occupied.  Met the owner who has also been maintaining the property himself.  I went to see the properties and it looks like work has been done in the property, but just the bare minimum.  There was new plumbing put in, new water heater and heating system, (but no central air). Laminate flooring on the first floor.   Basements are unfinished.  I asked him to provide copies of actual bills, copy of the current lease, and 1 years worth of tenant payment history.  (Nice guy, However, he does not strike me as the type of person who keeps records)  He said he does have led certification certificate for each property.  I met the tenants, and was able to talk to them, they said that they have been living in the unit for about two to three years.  On was an elderly lady who admitted that she has been late with the rent, but it was because she was sick, but she does pay.  He is asking 30k for each property.  

Questions:  

1) How do I determine the value for the property? 

2) Does anyone know of a good inspector and appraiser I could use in Baltimore City? 

3) Is there anything else to consider in order to decide whether or not to invest in property?

[Ned Carey]

@Maria McLemore The are many ways to evaluate properties.Comparable sales is the most common for SFH. However what a homeowner will pay for a house does not determine whether it will be a good investment. Cash flow is another way, generally more appropriate for investors.

There are many threads here on BP about evaluating deals. There are also deal calculators under the tools tab.

It is also important to consider your goals. Some properties will cash flow great but have little potential for appreciation. Other areas may not cash flow well but may have higher odds of appreciating. Do you want cash flow now or to grow your wealth for the long run.

The housing stock in Baltimore is very old. The condition of the property has a tremendous affect on the value.

How much are the rents?. You don't have to give the exact address but knowing the area can help us help you.

My gut tells me that $30K is an OK price but no particular bargain.