Where are you focused?

Question

After listening to one of the BP podcasts, I heard someone say that you should concentrate on neighborhoods.  I personally think that this is limiting, but I wanted to see what you guys thought?  Are you investing in just a single location (say Canton), or are you spreading your purchases throughout the greater Baltimore area? What are your thoughts on this?

Ned Carey · Answer

I a a big believer in focus. If you dominate a neighborhood, you will be the first to know about deals and you will know values so well you will instantly know what is a deal and what isn't.

That said, I work all over the city. I focus my business in other ways but I go all over the city for the best  deals.

I would say your strategy is important to. It is probably more important for a rehab and flip investor to focus on a few neighborhoods that it is for a wholesaler, for example

John O. · Answer

@Russell Brazil - I actually have family down in Charlotte and have thought about looking there for deals down there.  Seems like a good market.  But I would need to do some serious homework.  I honestly worry about managing long distance, even with people I trust.

MoCo seems to always be a hot market, but an expensive one to buy into. That being said - I only see growth for Rockville for sure.

Russell Brazil · Answer

sorry I'm not tagging you, but I'm on my cell and the tag function doesn't work on it.

For out of state investing I invest in Massachusetts, where I am originally from and still have family, and North Carolina, where I have some family that has moved to. So in both cases I have market knowledge, as well as feet and eyes on the ground that I trust. I would be very hesitant to do turn key, as I don't have the risk tolerance for it.

I really like Frederick. I get pretty good numbers, and I just like rhe area. It's a slower market though. I have a vacancy there that is not going to get filled in time for Nov 1.  My Montgomery County propeties, I typically have multiple applications in a week. Frederick usually takes me a lout 3 weeks, but my vacancy started the 12th, and I think it will be vacant for November alas.

John O. · Answer

@Russell Brazil - I have actually been very curious about Frederick.  Value/Rent in desirable areas seems to be there.  Same with some of the smaller towns north of Baltimore like Havre De Grace. Unfortunately, as a part time investor with full time employment, the trade off you end up making is time for stability of paycheck. For the out of state properties - did you utilize a turn key service?

@Ned Carey - you are probably right on the local knowledge.  I actually work really hard to ensure that the neighbors to my properties know me.   If I buy on a street and it works well for me, then I want to be the first one to know when someone else is selling their home as well.  And you do bring up a very good point.  Because of the heterogeneous nature of Baltimore and its neighborhoods, you really have to keep a lot of numbers in your head.  The houses are all different, and therefore valued differently.  Compare a Hampden house to a Charles Village to a Mt. Vernon.  Finding deals does become more difficult.

Russell Brazil · Answer

Awesome question, and I'm interested in seeing the answers. My investing is spread pretty far and wide in Maryland and DC, and I have some out of state properties too. One downside I see to my method of chasing the deal wherever it is, is that I spend a lot of time on the road. I've driven back and forth from Rockville to Frederick at least 10 times in the past 2 weeks. Heck I made the round trip twice today. The amount of hours I spend in a car, whether to see my own properties as an investor, or to see properties as an agent with clients, is not the highest and best use of my time, but I do it anyways for unknown reasons.

Where are you focused?

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