All Forum Posts by: Daniel Suarez

@Michael Smythe, can you tell me more about how you go about the inspection? I've been considering doing this next time I have a vacancy. 

@Jack Seiden Thank you. That was exactly what I was looking at, my only concern is that seems like rents are not far off from Dundalk. Dundalk 3/2 with finish basement would rent for $2200 and if I believe correctly Towson would rent for somewhere around $2700 max? With rates now my cashflow would be far far from what I'm getting in Dundalk, of course I would bank in appreciation. 

@Marc Rice, Thank you woul dlove to pick your brain. I'll pm you.
@Russel Brazil, thank you where you invest in Baltimore?

@samuel, I’ll definitely be reaching out thank you.

@jack, exactly, it’s Dundalk. Where else in the state would you rent? Would you not do section 8

Hello BiggerPockets Community,

I'm at a crossroads with a townhome investment in Baltimore County and seeking your insights. Originally purchased for cash flow, this property exceeded my expectations by appreciating roughly 70% over five years, jumping from $130k to $220k. With a locked-in low mortgage rate of 3.2%, and about $100k in equity after expenses, I'm contemplating my next move. The catch? It's in a challenging area where Section 8 is virtually my only tenant base—not a slum by any means, and the house itself is in great condition.

Here are the options I'm considering:

A) Keep and Re-rent to Section 8: By investing in some upgrades (paint, cabinetry, toilets), I can increase the rent to $2k (from $1800), projecting a cash flow of approximately $1300/month.

B) 1031 Exchange into a Short-Term Rental (STR) in Shenandoah: This would involve using a portion of the proceeds to make the property Airbnb-ready. I'm optimistic about potential appreciation in this area.

C) 1031 Exchange into a Rising Market: I'm eyeing markets like Columbus, where the growth prospects seem promising. This option would require assembling a local team as I'm considering forgoing a property manager.

D) Invest in a Better Maryland Area: The goal would be to find a property with higher appreciation potential, though I'm aware that the cash flow might not match what I'm currently achieving.

Given the unique circumstances of my current investment—significant appreciation, a specific tenant base, and a low mortgage rate—I'm weighing these options carefully. I'd greatly appreciate any insights, experiences, or advice you could share, especially from those who have navigated similar decisions.

Thank you for your time and wisdom!

Thanks @Rhett, I think we desisted from the idea of turning the unit into a laundry after all the comments. We're hanging in there and trying a couple of things the next couple of months to see if things improve. 

Thanks @LeeAnn, 

A lot of the tenants break the lease because they cannot pay the rent and just endup leaving. Just foudn out actually one of the tenants that broke the lease ended up being a crack addict that was stealing from another tenant (smh) 

Thank you @Colleen F. that is a good question about how much more are units with laundry. And yes making sure to tell them upfront that there is no laundry makes sense to vet out people.

@Zach Sikes, thank you. Yes i do hope to turn this around in a couple of months. 
@Melanie P. That was one of my first thought. If we charge $50 to only some tenants, they can share the key as well. 

@Theresa Harris, I haven't thought of this before, most of the tenant pool are not that young

@Karl B. Thank you. i also though of that. The problem is i'm an out of state investor and it would be hard to get the coins, but yes, i don't like the idea of having them using the washer and dryer for friends, etc. 

@Lucia Rushton Thank you! yes, one thing that worries me is that maybe we haven't thought about al of the possibilities to imrpove the place naturally. 

@Alecia Loveless, thank you. The trial is making sure the trial doesn't cost very much and that we have at least 50% of the current tenants agreeing if not definitely not worth it. That is awesome. Is your 8 unit in Oklahoma? Does it have any laundry units?

The only laundromat is about .6 miles, was thinking of maybe partnering with them as option b.