Where are my Maryland BP folks at?

[Alexander Lee]

Hey everyone,

Bigger Pockets is truly an awesome community!

Anyone local to the DMV area, specifically MD - Montgomery, Howard, Anne Arundel County?

While combing away on the MLS, Redfin, Zillow is easy, so far I've found it challenging to find good and responsible BRRRR purchases.

For those based in these counties, you know that real estate is stupid expensive. $500k can barely get you anything decent these days, and the margins and numbers are challenging to make work for

BRRRing vs other Midwest and southern states.

Just wanted to open the floor up to any advice for myself and anyone else, and maybe your past experiences here in the DMV market.

Thanks ✌️

[Leo Watts]

The big number you see tossed around here and other places is the 1% rule. That generally lets BRRR work. In DC and most of NoVa and MoCo you're closer to the .5% rule, with a $500,000 house getting $2500 a month in rent. That's sort of the opposite of what you want on BRRR, though breaking down your rental by room may bump that number up but introduce more volatility.

I think there are definitely close to 1% numbers in PG neighborhoods, though not the trendiest ones.

Running some preliminary numbers, it looks like there are properties in Ann Arundel just south of Baltimore that would perform fairly well as rentals. I like that area anyway for its proximity to the Chesapeake and Baltimore.

This home is going for 230 and a similar size home nearby recently rented for $2600  https://www.homesnap.com/MD/Gl...

I see a fair bit of Glen Burnie deals posted by wholesalers. Would be worth it to get in contact with a few so they're on your radar, as they can be a good source of discounted properties (though not always) that can make the BRRR numbers work.

It’s also worth noting a lot of investors bought their rentals 5 or 25 years ago. It’s why you’ll sometimes see a 2 million dollar DuPont Circle row house renting for 5k a month, as the landlords bought it cheap a long time ago and only have requiring maintenance (often deferred) and property taxes to pay.