Anyone here has rentals in Hagerstown, MD?

Question

I'm curious to hear from any landlords that own units in Hagerstown. Looking at some class B homes and was curious to see if it's a good market. I heard at a meet-up that Hagerstown was not landlord friendly.

Thanks in advance.

JR T. · Answer

I have a number of rentals in Hagerstown. The number one requirement to being moderately successful there is ignoring your vacancy and being very strict with screening requirements. You must get access to the Corelogic eviction database and screen out all prior evictees in that market. Maryland evictions do not appear on case search, Corelogic sends reps into the courts to enter the records manually, searches are around $8 per applicant.

Hagerstown is a lot of work. The city is against you. They will fine you when weeds pop out of the sidewalk and fine you when your tenant needs police assistance. Property taxes or license fees increase annually. For a lot of headaches my rentals there return 4-6%. I've stopped buying there and now focus primarily on Frederick. It's just too much work for the return.

If you're planning on landlording with any debt on your portfolio, forget Hagerstown. You will be cash flow negative on every deal with financing attached to it - this is almost a guarantee.

Devonte Dinkins · Answer

@Amad Osman There are mixed reviews in this post about Hagerstown, but I find that it is a great place as a long-term investment. I run a entrepreneur campus in downtown Hagerstown 240SouthPotomac.com (where people may say is a less than desirable place), but we are  doing well. I also own a multi-family in the downtown area as well. Just like any market, you need to create systems that will help you avoid some of the challenges that various markets have.

I have a management company as well, so if you ever want to take a trip down on the weekend I wouldn't mind helping you out.

Bill Kenny · Answer

Hagerstown is a great cash flow market for investors. Its at the crossroads of where property values and rents make sense for buy and hold investors. In general Maryland is not landlord friendly but I know very many people doing very well as landlords. I am a realtor and investor in Md and WV. I know Hagerstown fairly well and like any place were property values make sense to purchase in relation to rents for cash flow there are places that are less desirable than others. Do your due diligence and remember when your dreaming of passive income.. that does not mean you buy and never think about it again. Its a business and the better you are at selecting good tenants or purchasing property at the right price you can make money in any market.

The majority of my of rental holdings are in Martinsburg WV (very similar to Hagerstown) I started buying here because we starting mailing there and had lots of  success negotiating deals. I would buy in Hagerstown and surrounding areas without a doubt.

Robert Clemson · Answer

I also invest in Hagerstown and have for years. The rental license is a pain but the code enforcers will work with you. The Crime bill is also something to think about. There are a couple sentences that every landlord has to put in the lease about it. If there are others on Bigger-pockets that want to "Meetup" lets to it. I prefer to buy just outside the city limits if possible.

Account Closed · Answer

'Ignoring your vacancy' - He means even though your property is sitting vacant for 1-3 months and you just want to fill it with a tenant, ignore that pressure and wait until a GOOD tenant comes along.

Hagerstown reminds me of a lower key version of Baltimore. Some investors wouldn't touch plenty of areas of Baltimore EVER. Others make a ton of money doing it.

Robert Fountain · Answer

I use Advantage Property Management

Robert Fountain · Answer

I currently have 2 units in Hagerstown and working on closing on a third.  The market is good but you have to be very careful about where in Hagerstown you invest.  There are literally hundreds of available units but I would only ever go after maybe 1% or less of those.  I stick mainly to the North End of Hagerstown.  You're taking a risk in the other parts.

Hagerstown also has some pretty strict laws around rentals and they hold landlords responsible for many tenant actions.  You need to be very careful in Hagerstown and have a rock solid tenant screening policy

Jocelyn Borg · Answer

JR T: Sorry to resurrect a bit of an old post, but another recent conversation concerning Hagerstown and it's unfriendly landlord policies has me reading everything I can find on this area; my husband and I are very seriously considering starting out with some rental units here due to the affordability and familiarity we have with the area (the good and the bad). Originally posted by @JR T.:

Could you elaborate on what you mean by ignoring your vacancy?

Why do you say that debt will cause you to be cashflow negative here?

Hagerstown gets such mixed reviews; some wouldn't touch it with a 10 foot pole, others say come on in, the water's fine...

Thanks in advance - I really appreciate any info you're willing to share!

Amad Osman · Answer

@Bill Kenny the numbers are what caught my attention. Thx for your feedback.

@Robert Fountain would you mind sharing your PM company?

Anyone here has rentals in Hagerstown, MD?

Most Popular Reply