All Forum Posts by: Nancy Roth

Hi, Zoe,

I grew up in Baltimore and do all my real estate business there and in the nearby counties. You are 100% right about Baltimore being "block by stinkin' block". The best way to help yourself get oriented is to simply take some time, perhaps over a weekend, and drive and walk the neighborhoods. 

I'd be glad to discuss with you in more detail, perhaps even guide you to some starting points. The good news is, there are a ton of great, affordable neighborhoods where you can do exactly what you are planning to do. 

BTW I commend you on your foresight in considering the investment value of the home where you choose live, which, for reasons that elude me, many owner-occupant buyers simply ignore. 

If you'd like to reach out, please find my BP profile and send a colleague request. 

Best of luck,

Nancy Roth

I attended one of their monthly education sessions. V to V is within Baltimore Housing, which is one of the more dysfunctional agencies in the city, IMHO, although perhaps this small unit is more focused. Look specifically on the Vacant to Value website and their Facebook page.

My understanding is you have to apply to the agency in order to be qualified to buy their houses. I'm told the application process is rigorous. They do not want novice rehabbers. Download the application and read the fine print.

That said, once you are accepted as a rehabber you can get the houses, which are owned by the city, for amazing prices. We are talking about houses with trees growing inside, visible through the roof from outside. But if you rehab and resell them they will post on their website and publicize them, often to prospective buyers in their first-time homebuyers program. They also like to cut deals with big developers who will take on entire blocks.

Look also at the One House at a Time nonprofit, which has a similar program. I don't know much about that.

Good luck,

Nancy Roth

As a rookie buy-and-hold investor I have found Denise's classes tremendously helpful. I'm sure BP members are among the many that turn to her to learn more about Baltimore rental investing, because she has a very deep understanding of the rental market and a network of relationships in the area that help her get things done. Perhaps some are steered to her by other BP members. 

Nancy Roth

@William Allen

Chiming in late, but the strength of the offer overall depends on more than just the offering price. How well qualified is the buyer? How quickly can the buyer close? How good is the earnest money deposit (a higher deposit generally signals stronger commitment by the buyer, minimal deposit could mean--meh, I could take it or leave it). What contingencies come with the offer? 

If the offer is strong in all these respects, by all means, take it! I also like Justin's advice about consulting informally with the buyer's realtor. 

Hope you are inclined to update us on the outcome.

Nancy Roth

Hi, @Arthur C.,

Like you, I live in Washington DC and I do invest in Baltimore rentals. The market there is entirely different from what we see here in DC. Here you can almost count on property appreciation yearly because of the inflow of population and high demand for housing from people with discretionary income. 

But this is far less true of Baltimore. Until recently Baltimore was LOSING people, although that apparently has stabilized in the last two years. So you find a big housing surplus there, which keeps prices down--and appreciation, though it does occur, is very spotty and unpredictable. 

Also, it's not about "good" versus "bad" areas, it's about good and bad deals, which can be found in any area. If you plan to go into investing Baltimore you need to have clear objectives based on the realities there. 

Be glad to discuss further if you like. Please contact me via the "colleague" function on my profile. 

Best of luck,

Nancy

Wow, @Brandon Hall, thanks for telling this story, which perfectly illustrates the kinds of problems DC law creates for landlords. Tenants who know the laws can squeeze the dickens out of property owners. I know someone who rented a house to a lawyer (big big mistake) who withheld rent and sued her for all kinds of expensive unnecessary repairs--just because he could. 

As I said before, I know people who rent out their property in DC with very good results. Unlike in Baltimore, you get both cash flow and appreciation here. Baltimore is cash-flow only.

But you'd better arm yourself with knowledge if you are going to take the leap in DC. You can take the same courses on rental law that realtors are required to take at the Greater Capital Area Association of Realtors (GCAAR--google it), for a slightly higher fee than realtor-members pay.

Nancy Roth

Hello, Anon guy, 

I believe this investment forum is not an appropriate place to discuss such a personal decision. Your criteria for a personal living space are going to be quite different from those of an investor considering where to invest. 

It might be different if you wanted to buy a multiunit and planned to live in one unit and rent out the other(s), so as to pay your mortgage. Or if you were inquiring about how to invest in a sweat-equity property that you could simultaneously inhabit and rehab. Each of those scenarios has a big investment component, and many members of the Bigger Pockets community could give you excellent advice about them. 

But I think you are asking for an entirely different kind of assistance. 

The advisor you need is probably going to be a good local realtor, who will work through the numbers with you and point you toward the neighborhoods and homes for which you will qualify to buy. Once you start getting out to look at some candidates with the agent, I believe you suddenly will find yourself able to clear away many of the uncertainties that are stopping you. Trying to envision oneself living in one place or another has a way of firming up one's priorities.

I happen to be a realtor and live in the DC area, but I'm primarily an investor, and I don't think I could be of help to you in this very personal journey. But perhaps I could recommend a couple of people for you to check out. I would need to know a little more, like what jurisdictions you would like to explore. 

If you think recommendations will help you, please put in a colleague request, and then we can discuss. 

Whatever you wind up doing, I wish you the best of luck. It's great that you are thinking of taking the leap that so many in your generation are putting off, i.e., becoming a homeowner. Yay for you!

Nancy Roth

I'm surprised no one has mentioned the insanely anti-landlord slant of rental regulations here in DC. Some investors have told me they won't buy rentals here for that very reason. 

Even so, I know of a few investors who have been successful rental property owners in DC, but you'd better know the laws really well along with the numbers before acquiring anything. 

Good luck to you!

Hi, Leland, I live in DC also. Maybe get a cuppa sometime to talk about what you want to do?  

I grew up in Baltimore and love the real estate scenario there, although, just like anywhere else, there are pitfalls aplenty (I've learned the hard way). 

Connect with me via the colleague request system on your profile page, if you like, and we'll go from there. 

Best,

Nancy Roth

A frequent problem I've seen with Section 8 tenants is they move their family and friends in with them, although the lease generally forbids that, and the owner winds up with a lot of unanticipated maintenance costs. You are not immune from this even with 55+ tenants.

One colleague of mine had rented to a very nice elderly vouchered tenant, a veteran with health problems, who then brought in his niece, who brought in her boyfriend. Last week the vouchered tenant apparently rented a small spare room to an unrelated person, who broke a window while moving in. A great deal of maintenance expense is incurred with each additional person.

At the time you sign the lease tenant need to be told that no one else may move into the home, and that the tenant stands a good chance of losing the voucher if that rule is violated. 

Nancy Roth