All Forum Posts by: Nancy Roth

 You are roughly equidistant from Baltimore and Richmond, I think. I invest in Baltimore, having grown up there and feeling comfortable in the neighborhoods. In your place I might look to Richmond, though, which is reported to have one of the best returns on investment on rentals in the country. It may be easier for you to stay in ur own state. 

There is a very cool new REI group that started last year called Capitol Investors Meetup that meets in Falls Church. Actually they are meeting this Wednesday, I think. Look them up online. Very education oriented and meetings are free. I'm planning to go.

Good luck, 

Nancy Roth

@Sandra Holt: Have you looked at the National Association of Realtors website? If that doesn't spell it out you need to check the regional NAR chapters, such as the Baltimore Board of Realtors, or the Greater Capital Area Association of Realtors (GCAAR) websites to get information pertaining to brokerage requirements in the state of Maryland.

A realtor needs to be an agent for 5 years before becoming a broker, and my understanding is the coursework is pretty demanding. A lot of it is legal training, though, so that may be why you can get a shortcut as an attorney. You need to do some checking. Good luck with it.

@Matthew L Actually, Baltimore's population has stabilized in the last year or so. Yes, there is a lot of vacant housing stock as a result of the decades of population loss as all the industry closed or moved out of town. But the housing surplus in town actually keeps rental acquisition costs quite low, especially in relation to the rents you can charge in that market. A mostly renovated house I bought in 2013 for $30K, in which I've invested $6K to get rent ready, is now yielding $1200/month, most of which is subsidized. Subtract taxes, insurance, maintenance, pain-in-the-butt nature of Baltimore City, whatever you want, but that still yields a pretty good return. 

Your cost of acquisition in Owings Mills will be much higher, but the rent will only be slightly higher. The county levies tax at a lower rate, but the higher acquisition price means you ware likely to pay more in taxes than you might expect. Your insurance costs will probably be lower. And you are more likely to attract middle-class tenants. That definitely takes a lot of the difficulty out of the landlord biz. 

BTW, if appreciation is key to your investment strategy, you are better off in Baltimore County. You'll get meagre to no appreciation in the city, except in a very few neighborhoods.

Long story short--I guess it's a matter of choosing which problems you can live with. There is no perfect, problem-free business. Or life, for that matter. 

Thanks for writing.

@ Matthew L.

It's generous of you to write all this down and post it for the benefit of your fellow investors. These are words of wisdom. I think it takes guts to lay out what you wish you'd done better, and not pretty things up for public consumption.

So purely out of curiosity, let me ask, what drew you to Owings Mills in Baltimore County, when you live in California? I understand from various conversations around BP that making the rental numbers work in California is not easy. But goodness, why come all the way across the country? And why not go, say, to Baltimore City, Atlanta GA or Richmond VA, which RealtyTrac finds are the best rental markets in the country?

Here's a link to the new report with clickable map etc.:

http://www.realtytrac.com/news/real-estate-investing/first-quarter-2015-residential-rental-market-report/

I mean, nothing wrong with Owings Mills, but I don't see it as anything more than one of many affluent suburbs, which you can find just about anywhere in the U.S. Am I missing something? 

@Christina Rodriguez

Saw you in passing last night, didn't get to say hi, but I wish you good fortune in the venture. I hope you will keep us current. I would really like to know how the refi works out; that is a big hole in my knowledge.

BTW, I couldn't agree with you more about fostering relationships. One of the speakers at BWI last night asked (as I remember it): What do you remember needing most when you first started out? 

Attendees called out various answers, like "experience" "knowledge" "education" "money" etc. My answer would be "community." Simply a group of trusted colleagues who are willing to give you straight answers and explain how to do things. You can't have that instantly when you are starting out, you just have to be willing to talk talk talk and listen listen listen and try to sustain yourself as best you can as you work at finding your first few deals. 

It's inevitable, I think, that you will be disappointed by some who mislead you for short-term gain. I have been, for sure. But you learn and move on. Those who prove to be truly helpful, you find ways to be helpful back. Thus relationships are born, and then strengthened. Everything else--knowledge, experience, money, opportunities, etc. etc.--springs out of relationships. 

So, good for you. Keep going.

And please, keep us posted,

Nancy Roth

@Lee Salvaggio

Baltimore neighborhoods can be radically different from one block to the next, and honestly, I don't know how you get a good outcome there without getting to know the city very well.

I bought a house for $30K in Baltimore City from a certain tax-lien wholesaler (who is rather well-known on BP and among Baltimore investors). I am now getting a monthly rent of $1,207, of which 98% is subsidized. The young woman living there is a model tenant.

But before I got this wonderful tenant I had repair expenses, plus a first tenant who had not been adequately vetted by my EX-property manager. Lost several months of rent before we could get her out. So the actual cost of the property is more like $40K, taking in repairs and vacancy/lost rent.

Only last fall, a little less than a year after buying it, did I manage to secure a good flow of income from this property. It took some doing. All kinds of money-losing stuff can happen from the scores of pitfalls on the path to profitable rentals in Baltimore.

I have to wonder, is there such a dearth of real estate opportunities in your own community in Australia? It would seem to be a lot easier to invest closer to home. Or nearer markets, such as the Philippines, New Zealand, etc.? I know nothing about real estate in that part of the world and hope you will tell us about it.

Best of luck to you, whatever path you choose.

Nancy Roth

@Joel Owens

Yeah, there is definitely an aesthetic component to it. Being an urban dweller to the core, I really like being close to the community, and smaller, closer houses are part of that. 

I would feel isolated and lonely in a big country or suburban enclave with a lot of acres separating me from my neighbors. 

Obviously not everyone feels the same way. Aren't we lucky to have choices in this country.

Best,

Nancy Roth

@J. Martin

I think thin buildings are elegant in certain settings, and your Japanese examples show that off perfectly. My favorite among many brilliant buildings in New York City is the Flatiron Building, the skyscraper at 5th Ave. and Broadway just south of Madison Sq. Park. I would love to have an office right at that tiny point. 

 http://www.greatbuildings.com/buildings/Flatiron_B...

@Steve Babiak In a Colonial-era townhouse in South Philly I once visited, going up the stairs felt like climbing a ladder. There was one small room per floor. Folks just didn't grow very big or live very large back then.

@Karen Margrave It's a cultural thing, I think. Westerners are so used to wide-open spaces that a 16-foot width feels confining. Easterners, especially urbanites, have found ingenious ways to live reasonably well in tight spaces. In fact micro-apartments are trendy in NYC and to some extent in DC. I'd be surprised to find anything like that out West, you just wouldn't find a market for them.

http://www.apartmenttherapy.com/small-spaces-from-...

Nancy Roth

OMG in Baltimore 16' wide is huge in some parts of town! Eleven feet across is not uncommon in some 19th-century brick townhouses. This is also true of some pricy neighborhoods in downtown DC, such as Georgetown, Capitol Hill, and Foggy Bottom. 

Count your blessings! 

Nancy Roth