New to Real Estate · Baltimore, MD · Member since 2018 · 5 posts · 2 votes
Hi.
I'm in the Baltimore, MD area, and I've noticed people changing their investment strategies from flipping to buy-and-hold. This is understandable, due to the market correction that is coming. But, is anyone still buying all cash to flip and sell to retail buyers? Or, is that on pause for the next few years?
@Mark Cruse Wow DC, huh? I've heard that market is competitive, but lucrative!
I've gotten some Baltimore leads, and I'm analyzing some properties in the Dundalk area which - after driving it - seems like a pretty good place for investment. Most of what I'm analyzing is under $90,000, which based on my research, is decent pricing for a rental in that area.
@Ned Carey Thanks for answering, Ned. I was hoping that's still the case!
In doing my research, I know that 3/2 houses sell the fastest. But I'm seeing some 2/1s in decent condition - with the possibility to expand and add an extra bed and bath. I'm looking at a deal like that for around $85k near Dundalk, which I think is good, but on the higher end of the market.
I was down at the permit office today attempting to get a permit and there were about 10 investors still F&F that I was talking to and I've overheard conversations. It's not dead in B-more!!
@Marable I am in the DMV area anytime I among investers Baltimore continues to be a hot topic. I would not sleep on B-town at all. I will be looking for private lenders specifically for this area.
In doing my research, I know that 3/2 houses sell the fastest. But I'm seeing some 2/1s in decent condition -
I am not a flipper so I don't know that end of the market as well. However when I started there were a ton of 3/1 houses in the Patterson Park area that were made into 2/1 or 2/2 they sold fine. Rehabbers would use the space more effectively with two bedrooms, instead of an obsolete design with a walk through bedroom.
3 Bedrooms usually means kids. People with kids are not excited about Baltimore City schools.
The mark up or margin has to be reduced. Furthermore, buyers need to be choosy as home prices do not seem to appreciate. This is in the most vibrant part of US economy.
@Jamie Anderson There are some real estate professionals who focus on one strategy; however, there are others who focus on real estate investing based on the type of property and the area. I would focus on my own investment strategies and let others focus on their's. If you find a good fix and flip then flip it; if you find a good buy and hold then hold it; if you find a good deal for wholesale then wholesale it and move on to your next real estate investment. In my opinion, this is what real estate professional investors do. And congrats on joining BP as a PRO member - it shows your commit to real estate investment - take care.
@Ned Carey That's a fantastic tip about 3/2s, kids and Baltimore schools - I hadn't thought about it that way. Targeting 2/1s may actually be the way to go!
@Jamie Anderson i will expand on my previous comment. The convert a 3/1 to a 2/1/ or 2/2 Strategy, is probably best in trendy areas where young couples without children would want to buy. Patterson Park, Hampden, Canton fit that description. An area like Dundalk it probably is better to have 3 bedrooms.
I used to work the Patterson Park area almost exclusively when I started. The area was transitioning then, It is harder to find deals there now.
@Jamie Anderson yes I invest in Baltimore primary , I do flips and wholsale between flips. The last few properties I’ve wholesaled in the Patterson park and Hopkins (limited) area have been flippers