Multifamily Investments in Maryland and Baltimore

[John Paniagua]

Hi Fellow BP!

I am new to BP and looking to invest in multifamily properties in Baltimore/Maryland. I have reviewed online several on-market properties in Baltimore (near John Hopkins University) and outskirts. I ran back-of-envelope numbers on the COC and IRR for those properties (one was a many-contiguous row homes) and found the numbers attractive. Is Baltimore and Maryland attractive for multifamily investments? I read the economic reports for the 2020 outlook and they do not read promising. However, I am not familiar with the area and there must be other risks/drawbacks to account for this. Has anyone successfully invested in multifamily properties in Baltimore and Maryland in general (except near DC area)?

I am grateful for your input and feedback!

[Ned Carey]

@John Paniagua performing properties in Baltimore are going to be listed at prices that don't make much sense right now.  If you are buying value add properties (rehab and upgrade) then there may be some decent deals.

Baltimore city is a tough market in that every zip code has good and bad areas. Now I am talking about Baltimore city. Baltimore county will cost more but generally be easier to evaluate.  Are you local?  It is not hard to see why some areas are good and other areas just 1-2 blocks away are bad if your drive those two blocks. However from afar it is difficult to make that distinction.