Where to Invest in Maryland

Question

Good evening fellow investors,

I am currently trying to acquire my first investment property. I recently moved to Maryland for a job in D.C. and so far the areas I have seen are not ideal for investing.  Could you guys suggests some towns/neighborhoods to start with?  I'm looking for a multi-family house to start with.

Thanks Guys

Russell Brazil · Answer

Throw out the idea of multifamily investing in the DC area. Compared to other major metro areas, our region has an incredibly tiny amount of them. The few places where they do exist have a number of things going against them. Takoma Park for instance has incredibly restrictive rent control which makes their multistage cash flow negative if purchased with a loan. Trinidad in DC has some, but their highest and best use is as condos, so they are typically bid up in price by condo developers.

Aside from that, where to invest depends on your goals. If you want 1% cash flow properties look to say Germantown, Laurel or Frederick. If you want appreciation look to DC, Rockville, Silver Spring, Arlington, Fairfax. If you want more cash flow and are willing to take on more risk look to southern PG County or Baltimore.

John Bucci · Answer

Hey Chris, I'm looking at the fed hill, canton, and fell's point neighborhoods. These are the nicer and more competitive areas. Hampden is another good one, slightly lower grade, but an up and coming area. Other's to consider are mount vernon, bolton hill, and Little Italy. Can be good rental areas, but maybe less appreciation.

Baltimore can be competitive with investors but there are a lot of great properties for cash flow and hopefully appreciation over time. Most of the big time flips are snatched up quick with cash, gutted and renovated.

As i'm sure you've heard, if you're not familiar with B-more you have to be VERY careful. Areas change quickly from block to block. No neighborhood is without its own rough parts. You really need to know the areas or have feet on the ground there. The goal is to get on the edge of an up and coming area.

Account Closed · Answer

What neighborhoods in Baltimore would you target?  I'm looking for something that's a mix of appreciation and cash flow.  Thanks for the info!

Account Closed · Answer

I'm not as seasoned and experienced as @Russell Brazil But I totally agree with his comment. Those markets out in the DC area are extremely expensive. If you are looking for cash flow I don't believe that area is the best. But on another note I believe you can find a deal in any market. Just depends on your Goals. Keep at it! Best of luck to you.

Darren Wright · Answer

Thank you all for the great feedback.  Thanks Russell Brazil, I will definitely take your advise.

Melyssa Green · Answer

And this is why I love being on BP. It's easy to learn from others. Thanks for sharing your knowledge @Russell Brazil. As I begin investing in North Carolina, I began to think of others areas in the east to invest in.

Stephanie Dobbs · Answer

@Russell Brazil provided great advice! He knows what he is talking about so I would listen to him. There are few opportunities in PG County and Baltimore City, but Baltimore City can be quite fee heavy, so be sure to ask about the taxes and other fees up front before pulling the plug.

Where to Invest in Maryland

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