New to Investing/Baltimore

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New to Investing/Baltimore

Adam Claudy
New to Real Estate · Laurel, MD · Member since 2017 · 2 posts · 1 vote

Hi all, I just transitioned out of the service and moved back to the area, trying to finally get my foot in the door in this real estate investing game, despite the market insanity, and have been leaning towards Baltimore. I have a good amount of cash saved up and looking to house hack and use BRRR strategies. I am originally from this area and know central MD relatively well, but curious what neighborhoods in Baltimore and surrounding areas folks are investing in.

Perusing the local news sources, it does seem like crime is on the rise in the city. Not sure if this is more of a trend than historically speaking, or similar and just getting more attention. Has anyone had any major issues with property crime or have concerns that crime or the city's pretty consistent population decline will affect the housing market long-term? On another hand, seems like there are promising developments around Port Covington despite some setbacks, and city leaders are working to correct other issues, but no doubt these things take time.

I've also heard Maryland/Baltimore are not the most landlord friendly; has anyone had any major issues with the regulations, especially during/post COVID?

As for the surrounding counties, is anyone attempting to BRRRR in those markets, or are materials and home prices just too steep?

I've found the Baltimore REIA, but are there any other good meetups in the area to network?


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Stephanie P.Pro Member
Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
5y

@Adam Claudy

Baltimore. A quick tutorial

  1. Watch as many episodes of "The Wire" as you can.  Write down the street names in the opening montage and as you go through the seasons.  If you see or hear a street name, write it down.  Don't buy any houses on any of those streets mentioned in "The Wire."
  2. Many neighborhoods are overpriced or have been over renovated; Federal Hill, Canton, the area around Patterson Park (of course, that's my opinion).  I'd go for established neighborhoods around Loyola College or Cardinal Gibbons.
  3. If you can, go to the county. It's managed better and schools are still functional.
  4. Stay out of West Baltimore.  It will break your heart (and your bank account).

Some may disagree, but I think Baltimore has proven to be a mismanaged morass of cronyism and corruption that's so embedded in the politics, that the only thing to do is leave it alone. 
If you still have to invest in Baltimore, go for Hamilton, Parkville, Towson, Belvedere, Mt. Washington, Dundalk, Rosedale or Essex.  Best of luck

Stephanie

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  • Joe Norman
    Property Manager · Baltimore, MD · Member since 2014 · 1k+ posts · 1k+ votes
    5y
    0Reply
  • Sharon Lovelace
    Member since 2021 · 4 posts · 0 votes
    5y

    Hi Adam,

    I am working with a team in Baltimore and am learning about wholesaling in Baltimore, MD. Let me know if you are interested in learning more about the areas that are upcoming and grants the City is providing.

    Sharon 

    0Reply
  • Adam Claudy
    OP
    New to Real Estate · Laurel, MD · Member since 2017 · 2 posts · 1 vote
    5y

    I had seen property taxes were lowered a few times over the past decade, despite still having the highest rate in the state by almost double. I would hope that the indictments over the last few years and other DOJ involvement would be good motivation for reform. Perhaps a little over-optimistic... hoping for progress and betting actual money on it are two different things.

    For house hacking, I think I'll stick to areas closer to the harbor if I do settle on Baltimore. Thanks for the insights!

    0Reply
  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    5y

    @Adam Claudy

    Baltimore. A quick tutorial

    1. Watch as many episodes of "The Wire" as you can.  Write down the street names in the opening montage and as you go through the seasons.  If you see or hear a street name, write it down.  Don't buy any houses on any of those streets mentioned in "The Wire."
    2. Many neighborhoods are overpriced or have been over renovated; Federal Hill, Canton, the area around Patterson Park (of course, that's my opinion).  I'd go for established neighborhoods around Loyola College or Cardinal Gibbons.
    3. If you can, go to the county. It's managed better and schools are still functional.
    4. Stay out of West Baltimore.  It will break your heart (and your bank account).

    Some may disagree, but I think Baltimore has proven to be a mismanaged morass of cronyism and corruption that's so embedded in the politics, that the only thing to do is leave it alone. 
    If you still have to invest in Baltimore, go for Hamilton, Parkville, Towson, Belvedere, Mt. Washington, Dundalk, Rosedale or Essex.  Best of luck

    Stephanie

    4Reply
  • Robert C.
    Investor · Northern VA · Member since 2019 · 45 posts · 5 votes
    5y

    Hi @Stephanie P., very informational quick tutorial, thank you. Would you mind expanding on the reasons to stay out of West Baltimore?

    Thanks!

    0Reply
  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    5y
    Originally posted by @Robert C.:

    Hi @Stephanie P., very informational quick tutorial, thank you. Would you mind expanding on the reasons to stay out of West Baltimore?

    Thanks!

    Crime.  Infrastructure.  Jobs.  Schools. Baltimore in general is way too tenant friendly with their eviction processes and having to have your properties inspected by the city.  Having said all that, one of the big reasons why I would stay away from W Baltimore is the cost of construction if you're renovating.  You have to factor in the cost of armed security to watch your properties overnight and if you don't have security, be sure to factor in the cost of replacing appliances and tools when they're stolen and repairing work that was just completed.

    In the last 7 days, there were 23 reported crimes in West Baltimore; 5 people killed, random shootings, car jackings, aggravated assaults and street crimes. https://arcgisportal.baltimore...

    1Reply
  • Luke Angel
    Investor · Baltimore, MD · Member since 2021 · 5 posts · 1 vote
    5y

    @Sharon Lovelace I am interested in the grants what can u tell me

    0Reply
  • Joe Norman
    Property Manager · Baltimore, MD · Member since 2014 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Stephanie P.:

    @Adam Claudy

    If you still have to invest in Baltimore, go for Hamilton, Parkville, Towson, Belvedere, Mt. Washington, Dundalk, Rosedale or Essex.  Best of luck

    Note that several of these neighborhoods you mention are in Baltimore County, not Baltimore City. Baltimore is an Independent City, one of only three in the nation outside of Virginia <https://en.wikipedia.org/wiki/Independent_city_(United_States)>

    Its important not to lump the city and county together when generalizing whether or not to invest here. They are completely separate jurisdictions with their own governments, police, schools, taxes, etc. 

    1Reply
  • Sharon Lovelace
    Member since 2021 · 4 posts · 0 votes
    5y

    @Luke Angel, I apologize for not responding sooner. I don't always check this area. Since I am not familiar with what you want to accomplish; please checkout the below website and let me know if you have additional questions. This is one of several grant programs. 

    https://dhcd.baltimorecity.gov...

    0Reply
  • Ozzy SirimsiBusiness Member
    Real Estate Agent · Baltimore, MD · Member since 2016 · 1k+ posts · 782 votes
    5y

    I have more than 20+ units in Baltimore City, I disagree most people commenting about Baltimore.

    Dont try to buy a 30K house hoping have smooth run make an awesome profit and never go to eviction court

    Expect worse case scenario, calculate the headaches etc, if you are fine with it, buy them. If you cannot handle dont even bother.

    If you spend more than 100K , stick  to your renting criterias you will be fine.

    3Reply
  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    5y

    @Ozzy Sirimsi

    I totally agree with you when it comes to the headaches and expectations and buying decent properties.  Part of the point I was making is too many people see the allure of a piece of property for $5,000 and think they're going to put a little money into it and make it cash flow for thousands of dollars per year.  It doesn't work like that.

    @Joe Norman  Yes, a little less than half of the areas I listed were in the county and the jurisdictions are different.  That's part of the point; you can find decent places to buy and lease in the area and you don't necessarily have to stay in the city to do it.

    The city has been a mismanaged mess for several years now and I see no change in the future.  As schools continue to decline and as crime continues to increase, you'll find there are better places (more profitable) to invest.

    0Reply
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