How to know where to start?

Question

Hi! I live in Maryland and want to start and have read the book and lots of stuff online, and have a zillion questions.

where’s your top site to go to research - do you recommend the pro membership to crunch number - and to choose an area to focus?

I don’t want to run around the entire state to look at house and would like to narrow down to just a few zip codes… I prefer to start in Maryland because I live here… I am seeing tons of stuff in Baltimore city for sale and that actually makes me worry a little.. can they not rent or do some people only want to flip houses? I think I want to focus on suburban areas with families. I can’t afford a rehab/flip in Howard so I was thinking Carroll or Baltimore county.

Any areas that might be a great place to start?

Jenni Utz · Answer

I would first suggest creating a team that will help you with this. In order to understand the specifics of what you want to do, you should have a real estate attorney, mortgage lender, realtor, property manager, possibly contractor if you are going to rehab, etc. In order to understand the area and the market, you need to consult with experts in your area so you can make an educated decision.

Michael Meegan · Answer

Yeah Richard…..mid 200’s and rent for 2,200 or 2,300? That doesn’t meet The “1% test”.  I wouldn’t spend anymore time looking at the deal if I was interested in the cash flow.  Now at $2,500/month rent at $250,000 meets the 1% test and may worth looking into.  Tracy….If you find a $150,000 property and spend $25,000 on the Reno can it rent for $1,750?  That would meet the 1% rule.  I will be investing in the Wicomico County market and the Sussex County Delaware Market.  In 2026 will be working for myself and in 2031I will be able to run my business remotely and travel the world with my family and friends following the musicians and artists that we love.  Hope I can follow your journey and learn.  Thank you.

Sam Slivinski · Answer

I do not know the Maryland market so I can't help you there but hopefully I can help lend some guidance on where to point your energy. First you're going to decide on what strategy works well for you; house hacking, long term rental, flipping, etc. Then decide which headaches you want to deal with! Better grade neighborhoods are going to have much tighter margins but you will not deal with as much tenant turnover or damage to your units (in general of course). Another factor is going to be how much you have to spend. Once you find an area that works for what you want study, study, study. You'll start to be able to tell the good deals from the bad ones and if you start driving the areas you'll quickly realize which areas are nice and which ones are not.

I'd recommend using the calculators on here but first doing the math yourself. It helped me to understand how all the numbers worked by forcing myself to make and excel sheet.

Richard Mollel · Answer

Personally, of the places you mentioned, I find Baltimore County the most appealing. Townhomes in Owings Mills & nearby Reisterstown have decent entry points and returns - mid 200s selling price and upto $2200-$2300 in monthly rental income. Feel free to reach out for more consultation.

Mark Cruse · Answer

I like your enthusiasm but I think you should stay on this site for awhile, read many of the topics and narrow down so you can determine which strategy you want. Some of your questions are very basic and it seems like you are just scraping the tip of the iceberg in regards to the mountain of info you are going to need. First you are going to examine what path you want which you dont seem to have nailed down. Once you do that, ask specific questions about that line. Being a landlord and flipping houses and so many other things are thousands of worlds apart. No, there is no way to quantify that flipping is a whole lot easier with less headaches than renting. I have no idea where you get the notion that in renting you will do little renovation and get the best dollars compared to other stuff . Id say exam each lane and see what fits you. Research wholesaling, flipping and land lording and see which fits your personality the best. Once that is done focus on that one specifically and read  up on it. This is a great site for knowledge and no matter what you encounter most likely someone here has experience in it. After that, you will narrow down your scope and begin making moves to go in that direction.

Good luck!

Michael Meegan · Answer

@Richard Mollel Yeah.  I am currently using the 1% rule to try and find a property to hack.  I think I will run the 1% rule analysis on 20 properties and record the percentage.  Even if it less than 1%.  Then I’ll step back and probably convince myself to do an analysis regardless, on a few, and then it’s deciding if I’m happy with the cash flow.  I am trying to get into that first deal!  Brandon Turner’s video 2 years ago about Real Estate Investing Rules You MUST Know ( The 2%, 50% & 70% Rules) he said at time mark 2:38 that most properties that fall short of 1% will likely never produce a positive cash flow…..now he goes on to say other things about using other rules to help guide you quick and dirty.  I live on Maryland’s Eastern Shore and I want to invest in Wicomico County and Sussex County Delaware.  Tracy!  Keep us posted ok?  Thanks!

Richard Mollel · Answer

We are in compressed cap rates in the current market, so 1% rule is harder to come by esp in the a/b class markets that tend to have higher appreciation potential.The city likely has higher cash flow, but investing there is not for everyone.

Ozzy Sirimsi · Answer

You need to be more specific to be able to give your a direction.

What is your budget?

How much cash do you have?

What kinda financing??

What kinda cash flow you think would be fine ......

Alecia Loveless · Answer

@Tracy Edwards Hi Tracy, I’m not familiar with the MD markets but the BiggerPockets calculators have been so valuable to me. I’d definitely sign up for a Pro membership.

I’d figure out what strategy you want first, flipping, buy and hold, BRRRR and narrow down the neighborhoods you’re interested in and then build your team. Or figure out your buying strategy. MLS with realtor, postcards, letter writing.

I’ve got a property that started as a flip that I’ve decided to keep simply because the cash flow from it is going to be so good. If I sell it I’d take on about $600,000 worth of debt to only make about $800 more a month on other properties which doesn’t make sense to me. Sometimes you make these decisions once you’re into the process.

Personally I like buy and hold for the long run to prepare for the future. However you decide to go, best of luck, you’ve got this!

Tracy Edwards · Answer

Thanks.  I see stuff in Howard county for mid 200’s also and it’s a sought after area due to schools. I just was thinking that it wouldn’t really cash flow that well…  I assumed I should look for properties under $150K and fix them up to be marketed higher.

How to know where to start?

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