All Forum Posts by: Andy Gross

That's unfortunate. There are some great places to live in Baltimore, but those also tend to be tough areas for buy and hold investing.  

I would say that you should stay in your current place, and find something else to rent out, for the following reasons:

- Moving is expensive. Not just the actual cost of the move itself, but what about the expenses with setting up a new house? Will you need to purchase new furniture because your old stuff doesn't fit? I had to move from one condo to the next in my complex, and I was out about $1000 in total. I saved a ton of money because my friends helped me move and my landlord owned both places so there wasn't renting two places at one, but there are always unexpected expenses. It was different when I was in college and all of my worldly possessions fit into my Honda.

- Moving also has a non-monetary cost. It's time consuming and stressful. That's time you could spend driving for dollars, researching better deals, or just enjoying yourself.

- The profit margin on your place seems slim. Even if you self-manage, have no maintenance or cap-ex for the first few years because your house is in perfect condition, a single month of vacancy will wipe out your profits for the previous six months. Add in turn-over costs, and you could find yourself in the red for the entire year. And self managing doesn't really save you money because your just trading time instead. Sounds like a job to me.

- You can do better, with less risk, elsewhere. Baltimore City is one option, but so is Baltimore County, Frederick, Hagerstown, Aberdeen, etc.. There are other places within an hour drive that the hit 1-2% screening rule. 

- Your bank might throw a fit because you likely have a residential, FHA mortgage on an investment property and you've only lived there for a few months after refinancing. This may trigger a default. I might be wrong, but this is definitely something you might want to ask a mortgage broker about.

Personally, I would stay, unless there is a compelling reason to move, such as the desire to shorten your commute, you want to be in a better school district because of your school-aged kids, or you hate the house you're in. I think, as it stands now, you're going to end up losing money by renting out your current place and by buying a new one. 

If you did want to move, I would strongly think about buying a 4 unit multifamily property and living in one of the units. You'd be downsizing in space, but your new mortgage would be almost entirely covered by rental payments from the other units. 

 As others have said, it really varies. Getting a house under contract could be as little as a few hours, if it's priced right and in the right area. A well-priced row house in Canton could sell during the first open house. I recommend finding a realtor who does a lot of business in the area you've selected. They can run comparable sales and give you an idea of average price and time on the market.

Another thing to keep in mind is that a place goes under contract, it could take 60 days or more to close if it's being financed. So it if takes you 30 days to get it under contract, it could take you 90 days total to get paid. 

@Chuck Masters I'm from the Baltimore area and moving back in a month. I'm out here for work, and I'll working in Harford County. 

Aberdeen Proving Ground may be an Army base, but doesn't have as large of a transient population of other large bases. An employment center for sure, but I think the rental thesis is problematic.

Any thoughts on Abingdon as a potentially for flipping to retail?

They seem to be releasing the inventory in batches. Some real interesting opportunities pop up when larger, unique buildings come up for bid. They've had some historic factories, firehouses, etc come on the market in recent years. Bigger developers (backed by big money) come in to purchase those.

BPers have batted around the idea of "buying a block" and rehabbing it all at once. 

First of all, you should be commended for getting into the game at such a young age. Even better, you're asking for advice on a website full of smart people. You're hungry, motivated, and willing to be coached, and with a mentor, you'll be doing great things.

Second, though, is my advice to you: Slow down. Your writing is a bit sloppy, and using contractions like "IDK" not as professional as it could be. Take a second and re-read what you wrote, and then make changes for grammar and punctuation. It sounds silly, but taking that time shows other people that you are diligent, which is just as important as being hungry.

Your two biggest challenges at 17 years old are that you likely have no credit and almost no money. I know I didn't when I was your age. Try to find a job in real estate, just to get that W2 income flowing. It's going to be entry-level, but with a good work ethic and hustle, you'll get raises and promotions. Get a second job with an investor, doing whatever you can do make a bit of side money while learning the business. Keep your living expenses low and get your credit in order so you can get a mortgage as soon as possible. Then, house-hack and get roommates, or do a live-in flip.
Other than that, best of luck!

Not yet, but soon. I'm from Maryland, but I've been out of town for work. I'm moving home this summer, and once I get my house together, I'm going to start looking strongly at Dundalk. I'm seeing a lot of 3/1.5 or 3/2s going for 60-80k, with an ARV of $155k when renovated for retail. I think if renovated for rental, you can be all in for under $100k with a pretty decent product. These numbers mean the BRRRR strategy might be perfect.

They are tricky. Here is a redux of why I am personally staying away:

- Baltimore City Rent Court is extremely tenant friendly, to the point of being landlord hostile.

- Lead paint.

- Tenant placement can be tricky. Lots of working poor with varied forms of income. Less traditional W2 income means trickier qualifications.

I'm not saying I won't eventually get into that space, but I'm looking more in the Dundalk area. Properties are more expensive, but I think in the long run, the revival of the Sparrows Point area as a hub for jobs will bode well for investments in the eastern Baltimore County housing stock.