All Forum Posts by: Elke Cardella

@Mike Hurney 

Yes, appreciation in Wellesley with lots of negative cashflow because the entry price is $800k for a house that would sell in other towns for $150k :) Thanks for the tip on Brockton. I'll look into that.

@Christina R.

Thanks a lot for the advice - bought the house on the unit block of N. Montford in 2004 :) Probably overpaid at the time, but enough time has passed that there's good equity and cashflow now. If I remember correctly, you didn't believe in appreciation in Baltimore city - do you still think that is the case? Or are you referring to a particular neighborhood? I must say that it's taken over 10 years to get a bit of appreciation on the Montford house, but my timing was just off. Baltimore city is a tough call.

Thanks again. I would be fine with a 5% CoC assuming full cash (but would probably leverage). I'm still about 6-8 weeks away from looking at properties and might take you up on your offer at that point J. Scott. Yes, Andy, when I bought the montford house in 2004, it was about 40% (I'd guess) shells. I used to joke with my friends that I'd bought a house that was featured on "the wire", which it was. Now, it's probably 10% or less. Lots of improvement.

Thanks everyone for your responses. Taxes are a cost and I agree they need to go into the model. I currently live in Massachussetts so even the Baltimore city taxes seem somewhat reasonable compared to what we pay up here. Thank you also about the importance of protecting yourself against lawsuits, I'm sorry to hear about your uncle Andy Gross. And also, I know "don't bank on appreciation" is a motto here on BP, and I agree with it. Having said that, I'd still like to steer my investments to properties that have a good chance of appreciating. I own two rentals in MD, one in Baltimore City on the unit block on N. Montford, just north of Patterson Park and another down in Eastport in Annapolis. They both have been good! They don't cash flow too much, together around $250/month but I think they are good long term holds and by my calculations (that do assume some appreciation, 3% annually) the properties increase my "net wealth" by $35k+ year. So, the reason why I'm interested in Maryland is because I know the investment can work there AND yes, compared to Massachusetts, everything is quite a bit cheaper there. Cap rates in my neighborhood are probably around 3%! Also, the inventory here is very old. I just need to hone in on a neighborhood. Thanks Ned for the neighborhood ideas as well as the thoughts on Owings Mills, and the tenant profile, doesn't sound ideal.

@Andy Gross @WAYNE G.  @Ned Carey 

Thank you Jesse. Yes, I should clarify - I am totally open to any avenue that gets me a turnkey property. My assumption is that its harder with wholesale because the houses are more likely to need some work - I could be off the mark on that, I've never explored buying wholesale properties. If I can get a turnkey rentable property from a wholesaler, and I can get it even at a 10%-15% discount, that's great! My real challenge is researching areas from afar - I lived in Baltimore city and Annapolis 2001 - 2011 so I know the basics. But, it's the fine-tuning, drive-through-the-neighborhood information that I don't have access to. I'll be coming down for a research trip in the near term, but won't have too much time so I want to plan my trip carefully and be sure to look at properties in the right areas. So far, I'm thinking Owings Mills and the popular city neighborhoods (fells, canton, ppark, locust). I also don't have a huge tolerance for difficult renters, mainly because of the distance, so I need to stay in decent neighborhoods.  

I am looking to invest in the greater Baltimore area - probably two houses in the $200k - $300k range. I'm not looking to renovate or buy wholesale/foreclosure or any other discount option. I'm looking for a good deal on a turnkey property that i can immediately rent out. Hoping for some cash flow, but more importantly appreciation greater than inflation - ideally 3%-4%. Does anyone have any thoughts on areas? Owings Mills looks like it has had a lot of development - is this area getting overdeveloped or is there a lot of demand out that way? And Baltimore city east? I've seen posts that people don't believe there is any appreciation there. I own a house on N. Montford and it's seen a lot of ups and downs in value. I'd love to hear any thoughts on this. (Ned?) Thank you anyone for your opinions!

Hi Steve. I am glad you are not seeing a big tax increase. I'm in the process of contesting it so I'll find out more when they respond.

Annapolis Maryland that is. 

Anyone else surprised by the increase in Annapolis real estate tax assessments for 2015? Anyone know what's going on? I know there are a bunch of new constructions in the past year or two - but enough to create, for us, a 45% increase? We haven't updated the house at all, to warrant this jump.

Thanks everyone for your replies on this. I am going to refinance the property to become cash flow positive. An easy solution for now!