Interested in strategy for RE investing in DC / baltimor

[Leo Watts]

Hi all,

Contemplating a move to DC for myriad reasons.

I will most likely be selling my primary residence and some other investment properties here in Dallas.

I’ve had luck buying foreclosures on the wrong side of the tracks here. Low acquisition cost and big upside (lots of jobs and hot market) have been kind to me in appreciation over the last few years.

Browsing Zillow, the radically cheaper prices EOTH keep jumping out at me. I don’t particularly mind living in a worse neighborhood, especially if I could leverage 200 - 500k+ cash as a down payment to acquire and renovate a multi family in need of work.

I’m sure I’m not the only one thinking this. It seems like EOTH has a lot of untapped potential.

Other strategies include something with fewer units in a more desirable part of town with a smaller short term upside but more stability. I could also buy something nice to live in DC for myself (a walkable neighborhood close to metro appeals to me - I’d rather not live in suburbs right now) and slowly 1031 some properties to cheaper rentals in Baltimore (I’ve always had a weird place in my heart for charm city after spending weeks out there with a buddy in college). What’s the long term prognosis on Baltimore’s values?

I’m also quickly gaining experience in development, so acquiring land at a good price could be an interest play as well.

Essentially - if you had 250 - 700k to leverage (with 1031s and 20% down), where would you be looking and why? I’ve made some good money in the “up and coming” areas of dallas so that concept still appeals to me, but unfortunately my knowledge of DC / DMV / Baltimore Real Estate trends are rudimentary at best. I’m also interested if there is a good source for whole sale information as well, and learning about the foreclosure auctions up there too.

Thanks in advance.

[Russell Brazil]

Baltimore and DC are drastically different markets, and usually does not have an overlap of people investing in both even though they are very close.  The cash flow investor with a higher risk tolerance will typically go to Baltimore, while those with a lower risk tolerance who want a nicer asset will go to DC.