Are these good Baltimore neighborhoods?

Question

Im looking at some properties in Baltimore. What do people think about the the Reservoir Hill neighborhood and the Middle East between Orleans and Jefferson and Montford and Milton. Thanks for all replies and any tips.

Ned Carey · Answer

@Jesse Milligan It depends on your goals and risk tolerance. You can find people dealing drug in lots of areas. The square you mentioned is not in Middle east. It is technically "Milton Montford". I think that would be OK for cash flow, especially if you can find the right deal. You could see some appreciation in that area IF is continues to develop but that is not guaranteed.Reservoir Hill varies a lot from one end to the other. Many parts are still very rough. Most are very large properties that would be expensive to renovate and may be tough to get to cash flow well because of costs. Again you may see appreciation if the area develops. However the city was pushing Reservoir Hill when I started 15 years ago and it doesn't look that much different now.

Ryan Lim · Answer

Jesse, I'm a fan of Reservoir Hill because of the new developments that are going on in the area - and increasing sales. As a former resident in 21224, I would say a good rule is to stay south of Orleans. Progress is being made pushing north of Fayette, but good sales/comps aren't where they should be if you're looking to rehab. Hope this helps! Ryan Lim Baltimore realtor/investor

Stephanie Walkes · Answer

Account Closed I see a lot going on in Baltimore and it reminds me a lot of Brooklyn in the past 10 years or so. There are a lot of building going on and infrastructure being improved... These things aren't usually done to benefit the lower income people.

Ned Carey · Answer

@Jesse Milligan I would not consider that a below market deal by any means. A reasonable deal, possibly. It is hard to tell without actually knowing and seeing the specific property. No the rents are not that high. I would think $800-900 would be more realistic for a non section 8 tenant and $1100-1300 for section 8.The latest census estimates are that Baltimore still lost a little population last year (16,000~). That is not really significant but unless the trend reverses I would not count on appreciation in either of the neighborhoods you mentioned. If you buy for cash flow just consider the appreciation a bonus.

Account Closed · Answer

Good areas in baltimore??? Let me help out. Two baltimores exist, one is what you might call "good"...aka roland park, hampden, remington, federal hill, and a few other places. Cops are responsive, businesses flourish/ fight for space, as do residents. Maybe 25 percent of the city is this. The other 75 percent are versions of bad. Some are less bad and some are more bad. Drugs are everywhere, police are powerless. Board ups or not, they can happen at anytime. The areas you mentioned are bad. Better or worse is relative, but worse areas definitely exist.

Jesse Milligan · Answer

Remus Phillips Ryan Lim Thank you for the info. We are looking to buy and hold. Partner looked a couple places today. The place in the mideast was nice and rent ready. Good price on a nice blovk with no abandons but he said he saw people selling drugs on the corner so staying away from there. Reservoir Hill looks beautiful and nice housing stick close to downtown. Hoping that if the city ever turns around its beautiful historical areas like this that would be come desirable.

Account Closed · Answer

Baltimore is broke. Its clear as day. Joblessness does here what it does to Detroit. Until that changes, nothing changes.

Ned Carey · Answer

Yes I see some very positive things both short and long term. There is lots of development and new construction in baltimore. Yet there are also negatives. The bottom line is there no clear indication of either tremendous growth or serious decline in the city. Hopkins, Under Armour, Amazon, and bio tech are all large stabilizing forces that are not likely to leave anytime soon. What is clear is that today and the foreseeable future the cash flow in Baltimore at today's prices is some of the best in the country.

Jesse Milligan · Answer

Ned Carey Do you see anything positive short and longterm with the city happening?

Jesse Milligan · Answer

Seth Sherman do you see a future in the longterm in the areas I mentioned? Much of that I realize is dependent on jobs coming to the city. What do you see 10-20 years down the road in Baltimore. Will there be spillover from DC? If the cash flow is good and I can refi then I can sit and wait with my fingers crossed.