All Forum Posts by: Joe Norman

I live and work in Baltimore, and have a lot of family in Pittsburgh (and therefore have spent a lot of time up there).  I agree wholeheartedly with the comparison between the two cities.  Both are hard working, blue collar towns that have a few bad neighborhoods, a whole swath of neighborhoods with potential, and a few middle-to-higher end neighborhoods around downtown and anchor institutions.  Good luck!

Welcome! Dundalk is great for buy-and-hold as well as for flips, but keep in mind that it is a town made up of many neighborhoods, and not all are the same. Rosedale (21237) is a tough zip code because it is made up of the more affluent northern part near White Marsh (where there isn't as much distressed property), and the more commercial southern section where the highway/heavy industry limits the residential demand and therefore the comparable sales for estimating ARV. That is definitely not to say that you can't find a deal there, just make sure you really trust your numbers. Good luck!

In my experience the old ground rents have no impact on value of the home.  Some of the newer ones (created in the early 2000) can be significant and drive down value, but those are mostly in suburban communities built during the housing boom and are very, very rare.

Ground rent amounts are set in stone and will not every increase.  The ground rent owner can only "demand the ground back" through a foreclosure action over unpaid ground rent, but only if the amount owed is greater the $1000.  Ground rents are perpetual and are bound to whoever owns the home - the ground rent holder can not terminate the ground lease.

Its confusing and can appear significant, however in the grand scheme of things its really just a little hiccup in the Baltimore real estate market.  If the ground lease is less then $250/year (which the vast majority are) I wouldn't even factor it in to your analysis.

There are always great deals in homeowner neighborhoods in Baltimore that make for excellent BRRR acquisitions. Investing in neighborhoods on the outskirts of the "hot" harbor neighborhoods like Upper Fells Point, Patterson Park, or Riverside can yield you a good deal with substantial potential for appreciation. There are also some great up-and-coming neighborhoods in North and Northeast Baltimore like Belvedere and Hamilton-Lauraville where there are strong gentrification movements going on.

I agree completely with Ned that buying properties that need renovations are the quickest way to build your net wealth.  However I also concur that renovating from afar can be risky and challenging, especially for your first acquisition.  There are plenty of businesses, at least in Baltimore, that specialize in selling rent ready or turn key properties to out of state investors, however you should get a second and third opinion of their financial projections because they often seem inflated to me (at least at first glance).  Good luck on your journey!

Congratulations on the first flip!  I think you'll find that you have a lot more confidence going into your next one.  There is definitely opportunity up here in Baltimore but be careful of some of the "deals" that are being marketed - many of them are in neighborhoods that are not in demand.  Stay smart and remember that you need to make your money on the purchase.  Good luck!

Great question!  Baltimore is a great town to be investing in for a number of reasons, but first and foremost is the returns you can get as a landlord.  In terms of what to watch out for, here are a few

-Baltimore is a city of Neighborhoods.  You have to get to know the neighborhood well and even get to know the individual blocks in the neighborhood.

-There are some Lead Paint Sharks operating in the city so getting a Lead Free cert is a good idea (this doesn't completely shield you from liability in MD, but it is a deterrent to nuisance law suits).

-Baltimore is a very tenant friendly jurisdiction so screen your tenants well

All in all though its a great place to invest.  Good luck!

Welcome Julie!  I think you'll find a lot of opportunity in Baltimore if you're willing to work for it (which I know you are!)

Welcome Dillon!  I am an agent and investor in the Baltimore area myself, feel free to reach out if I can ever help you with anything.

Welcome Andy!  Depending on your criteria there are plenty of great investments in those neighborhoods.