Rental properties in Frostburg MD

[Ben Keeler]

Hi, 

I am looking for my first deal and am located in the DC metro area. I'm looking in the Frostburg MD market which about an hour away but it's a college town with a significantly lower price point than where I live. Can anyone speak to the Frostburg market? I assume its easily rented by college students but want to make sure I'm making the right decision since its my first deal. 

Thanks guys, I appreciate any and all help! 

[Bill Kenny]

Hi Ben,

Frostburg is a solid place to own a rental home or multifamily. Real Estate Prices are low and Rents are solid due to the demand from college students. I have never had a problem renting my properties.  I have a few good reasons to buy there.. First off its the best place in Allegany County to own. The #'s make sense.. you can actually find a 2% property (if your willing to rehab). The city is easy to work with and the registration costs are relatively low. People maybe confusing it with Cumberland, which is a different ball game.

I have family in Frostburg, I grew up in the area, I am back there weekly and My son goes to Frostburg State. I know the lay of the land. I self manage, so because of that fact I like to have properties in places I will be..

They say in real estate is location, location, location but in Frostburg its insulate, insulate, insulate... it gets cold there! 

Like any location there are good bad and ugly locations and Frostburg is no different. I am looking to buy in specific areas of the city. I have wholesaled and worked with MLS buyers as well, so have a pretty good feel for it. Enrollment has grown at a clip of around 15% over the last 10 years, I believe. One of the concerns I have is the large amount of multifamily that has gone up recently in response to the University and the trend of online degrees which means less rooms needed. That should have some affect on supply and demand. Maybe student growth will keep outpacing it.. who knows.

I would recommend that due to your distance and lack of experience after you get one or a few under your belt this this would be a good place with the proper due diligence if you ARE going to self manage. 

Good Luck!

Bill