Wrong time for a first property house hack in NE Baltimore?

Question

Long time lurker on here, finally getting motivated to make moves. I almost bought back in 2019 but held off, endured through Covid now emerging to see the lay of the land. I know that property values are way up and if you buy a fixer upper materials and labor are in short supply. That being said, anyone familiar with NE Baltimore specifically from Lauraville through Hamilton and Parkville? Are all the 2-4 unit places still going for way over asking, should I keep waiting?

Looking to connect with people in the same position I am or more experienced investors, thanks for your input.

Looking to connect with people in the same position I am or more experienced investors, thanks for your input.

Tawanda Thomas · Answer

The market is tough and it is still a seller's market to s degree. You just have to be ready to pull the trigger and know your numbers. Do they work? If yes, put in the offer. I always say the best time to buy is when you're ready. Markets change all the time. Feel free to reach out of you have any other questions. I was born and raised in NE Baltimore and lived in Patkville with my family for quite some time as well. I'll be happy to chat and help where I can.

Tawanda Thomas

Joe Norman · Answer

To your general question of "should I buy now or wait" I would say don't wait. The best time to buy real estate is 30 years ago, the second best time to buy real estate is now. Yes its a sellers market, yes values are appreciating rapidly, but this is not 2006 when sub prime loans were artificially propping up values. I tell my clients that I put my money where my mouth is on this one - I'm still purchasing investment properties through covid and this market, in addition to a new primary residence.

To your more specific question about the multi-unit market in Lauraville, the pickings are slim but they are out there. The ones that are easy to show and priced well do sell quickly, but the "easy to show" part isn't always a given with tenant occupied properties.

Shoot me a PM if you want to connect and talk more about current inventory.

Seth Hochberg · Answer

The consensus seems to be that the market is very seller-friendly these days (with fierce competition to buy houses). But that alone doesn't seem to be a good excuse to wait. As long as you can run your numbers effectively, you should be able to determine the highest you can offer on any house. So you just keep offering that amount on every house (unless you know you don't have competition, because you found the property off-market, for instance). But the analysis is the exact same. What changed is that you'll likely get rejected for way more offers, and will take a longer time to find one, but that's better than just waiting around.

The maxim goes, "Time IN the market always beats timing the market".

Sam Lewis · Answer

Jump in and learn to surf when you can. There will be some smooth days, rough days, high tides, low tides, but because you started today, you won't be falling off your board a few years from now.

Jump in while you can, granted - don't over pay, but get some scuffs and bruises on your shins so your 2nd, 3rd, 4th, and 12th property purchases are walks in the park

Ozzy Sirimsi · Answer

Hi @Keir Johnson

I bought my first duplex before the market crash, in a good neighborhood that I knew I will be able to rent it easily

5 years later, I bought the house right behind it, literally behind it, same set up, needed some work, nothing crazy and paid 100K lower.

Still have both of them, and if go back to time, I would buy them again.

As long as numbers make sense to you, and you feel comfortable, you can buy it. Buy& hold is a long term business, as long as you keep it, market goes up goes down, does not matter.

You still have your cash flow.

Account Closed · Answer

Keep chugging and try networking with your neighbors if you already live here! Most of my good leads these days come less from staring at the same houses on the MLS everyday trying to make the numbers work, and more from talking to my neighbors. That won't work for everyone, but from my experience, that's how Baltimore has operated for me.

Keir Johnson · Answer

@Seth Hochberg @Joe Norman @Tawanda Thomas thank you all for taking the time to reply to me, I really appreciate it.  Taking your advice, yes I have my numbers and understand the difference now is going to be a lot of turn downs but I'm hoping I'll make it through on one, thanks again!

Wrong time for a first property house hack in NE Baltimore?

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