All Forum Posts by: Bill Kenny

Lots of cheap property in these areas.. the biggest challenge will not be finding deals but managing the property and finding quality tenants. Frostburg is the easiest place to find quality tenants. I am very selective in the locations and types of property I buy in Allegany County. 

Hagerstown is a great cash flow market for investors. Its at the crossroads of where property values and rents make sense for buy and hold investors. In general Maryland is not landlord friendly but I know very many people doing very well as landlords. I am a realtor and investor in Md and WV. I know Hagerstown fairly well and like any place were property values make sense to purchase in relation to rents for cash flow there are places that are less desirable than others. Do your due diligence and remember when your dreaming of passive income.. that does not mean you buy and never think about it again. Its a business and the better you are at selecting good tenants or purchasing property at the right price you can make money in any market. 

The majority of my of rental holdings are in Martinsburg WV (very similar to Hagerstown) I started buying here because we starting mailing there and had lots of success negotiating deals. I would buy in Hagerstown and surrounding areas without a doubt.

The best private lenders are people you all ready know and who all ready trust you.. With your business contacts and rate of success I would beat there are people all ready in your network looking to make 8 to 10% secured by real estate. 

Hi Cristian, Hub City REIA is a great place to network and meet Investors, agents, contractors and lenders. It was one of the best moves I made joining there several years ago. See you there. We currently have a wholesale property for sale on Mitchell Ave in Hagerstown if your interested please send me a message.

The cheapest list price is in the 30K range and those would be downtown Hagerstown. Wholesalers would be in that range also.. I personally would feel safe walking in any neighborhood in Hagerstown and no so much in Baltimore. 

What goes up must come down.. It the larger markets all over the US prices have risen back to and past the pre crash 2007 peak in prices. If the numbers don't make sense and I would bet in the DC market they don't then don't force it.. wait for one that does work or move to plan B. 

Hi Ben,

Frostburg is a solid place to own a rental home or multifamily. Real Estate Prices are low and Rents are solid due to the demand from college students. I have never had a problem renting my properties.  I have a few good reasons to buy there.. First off its the best place in Allegany County to own. The #'s make sense.. you can actually find a 2% property (if your willing to rehab). The city is easy to work with and the registration costs are relatively low. People maybe confusing it with Cumberland, which is a different ball game.

I have family in Frostburg, I grew up in the area, I am back there weekly and My son goes to Frostburg State. I know the lay of the land. I self manage, so because of that fact I like to have properties in places I will be..

They say in real estate is location, location, location but in Frostburg its insulate, insulate, insulate... it gets cold there! 

Like any location there are good bad and ugly locations and Frostburg is no different. I am looking to buy in specific areas of the city. I have wholesaled and worked with MLS buyers as well, so have a pretty good feel for it. Enrollment has grown at a clip of around 15% over the last 10 years, I believe. One of the concerns I have is the large amount of multifamily that has gone up recently in response to the University and the trend of online degrees which means less rooms needed. That should have some affect on supply and demand. Maybe student growth will keep outpacing it.. who knows.

I would recommend that due to your distance and lack of experience after you get one or a few under your belt this this would be a good place with the proper due diligence if you ARE going to self manage. 

Good Luck!

Bill

If the property has been on the market for a long time obviously you will have a better case to justify your price. Working with all kinds of different buyers and sellers I see different ranges of motivation. If you can find the sellers motivation you may be able to work towards that as a key negotiation point. I would point blank ask the listing agents what the deal is.. I worked with a seller whos motivation was to sell quickly and price did not matter.. She had to bring money to the table to close but was so happy to be out of the situation she could move on.. Money isn't always the main factor, 95% of the time it is but maybe it may be that you allow the son to stay in the unit rent free for 6 months... who knows?

As for Hagerstown, Don't be worried about the market, If you buy in the right location with a good criteria you can make strong cash flows for many years. There are many investors turning great profits in Washington County. As with any thing worth having it will take effort and solving problems relates to great wealth. Stick to your criteria and justify it with your offer.. You can't force deals to work..

Hi Chris, I have several rentals in Martinsburg, let me know if I can help. I currently have a wholesale property I'm looking to sell in Martinsburg. Good Luck and check out the REIA next month.

Hi @Andrew Rickli, Let chat sometime soon. I would like to find the best solution to re finance my properties I have purchased with private money, maybe you could help..