Investing in Multi-family Units In Baltimore?

Member since 2019 · 144 posts · 46 votes

I have been doing a lot of research on where to buy my first multi- family unit and I found Baltimore interesting. I wanted to know what experience you have had investing there? My goal is cash flow and decent appreciation. TIA

4 Reply

58 views

Most Popular Reply

Ebony Monroe

Real Estate Agent · MD · Member since 2022 · 12 posts · 7 votes

Baltimore city is block by block. You can definitely find good multi family properties here. You need to have a solid agent with experience or at least willing to video conference you so you can see not only the home but the area and street. You can also find a lot with tenants already there unless you want to evict and choose your own. I agree with what someone else said about Canton area- and yea they are redoing Baltimore city and John’s Hopkins plans are ever growing. Bringing more doctors and nurses and students down this way.

Baltimore county is better for townhome or single family rentals. I work with a lot of investors that buy those and use as rentals but watch out for condo association fees or hoa fees, you don’t want them too high. Quite a few AirBNBs out in the county too for example my area of Owings Mills; it’s close to the metro and not far to downtown but still close to shopping, entertainment, schools and library’s.

Hope this helps- let me know if I can answer anything else for you.

7 Reply

See this reply in the discussion

22 Replies

Jump to latestLatest

Sort by

Dwight Gholson
New to Real Estate · Washington, DC · Member since 2018 · 18 posts · 7 votes
4y
I'm in the same boat. Looking for my first multifamily investment in Baltimore or surrounding counties.
1 Reply
Nick Shri
Rental Property Investor · VA · Member since 2020 · 218 posts · 133 votes
4y
Quote from @Michele Velazquez:

I have been doing a lot of research on where to buy my first multi- family unit and I found Baltimore interesting. I wanted to know what experience you have had investing there? My goal is cash flow and decent appreciation. TIA
With your goals stay out of Baltimore. First of all MD is a tenant friendly state. Have you looked at Baltimore stats in terms of economic growth, population growth etc? The properties in Baltimore are ridiculously cheap for a reason. I haven't see much appreciation in Baltimore over past few years. If you are looking for CF AND decent appreciation, look in mid-west, buy off-market below market value and you will meet both of your goals.

Good luck..
2 Reply
Michele Velazquez
OP
Member since 2019 · 144 posts · 46 votes
4y
Quote from @Nick Shri:

Quote from @Michele Velazquez:

I have been doing a lot of research on where to buy my first multi- family unit and I found Baltimore interesting. I wanted to know what experience you have had investing there? My goal is cash flow and decent appreciation. TIA
With your goals stay out of Baltimore. First of all MD is a tenant friendly state. Have you looked at Baltimore stats in terms of economic growth, population growth etc? The properties in Baltimore are ridiculously cheap for a reason. I haven't see much appreciation in Baltimore over past few years. If you are looking for CF AND decent appreciation, look in mid-west, buy off-market below market value and you will meet both of your goals.

Good luck..

I have done a lot of research. What I thought was interesting is the initiative the city is taking to build the city up. https://www.baltimoreniif.org/ I also found a lot of interesting information here: https://www.noradarealestate.c... and other lists that I found calling out Baltimore as an up and coming market. I am considering Ohio too?
1 Reply
Michele Velazquez
OP
Member since 2019 · 144 posts · 46 votes
4y
Quote from @Dwight Gholson:

I'm in the same boat. Looking for my first multifamily investment in Baltimore or surrounding counties.

What made you want to consider Baltimore? I am still on the fence since most people I mention this too say it's too run down there but I feel like its going to come up
3 Reply
Jack Seiden
Real Estate Agent · Washington DC · Member since 2016 · 847 posts · 656 votes
4y
Quote from @Michele Velazquez:

I have been doing a lot of research on where to buy my first multi- family unit and I found Baltimore interesting. I wanted to know what experience you have had investing there? My goal is cash flow and decent appreciation. TIA

It really depends on where in Baltimore, some stuff in Baltimore is cheap for a reason, mostly that the tenants pool and turn over is so high it’s returns are significantly lower than on paper. That said if you invest in the a-b class areas of Baltimore such as Canton, Fed hill, and Hampden. You can get a decent combo of solid return and decent appreciation. Don’t over look Baltimore county either, Multi’s are a little harder to find but the property taxes are much lower and in general has a much more stable tenant pool.
5 Reply
Mike Davis
Lender · Annapolis, MD · Member since 2022 · 154 posts · 70 votes
4y
If investing in Baltimore City, make sure the properties you look at are accessible and you can get in to complete a REHAB budget with a contractor. I have clients that have had issues with this.
0 Reply
Ebony Monroe
Real Estate Agent · MD · Member since 2022 · 12 posts · 7 votes
4y
Baltimore city is block by block. You can definitely find good multi family properties here. You need to have a solid agent with experience or at least willing to video conference you so you can see not only the home but the area and street. You can also find a lot with tenants already there unless you want to evict and choose your own. I agree with what someone else said about Canton area- and yea they are redoing Baltimore city and John’s Hopkins plans are ever growing. Bringing more doctors and nurses and students down this way.
Baltimore county is better for townhome or single family rentals. I work with a lot of investors that buy those and use as rentals but watch out for condo association fees or hoa fees, you don’t want them too high. Quite a few AirBNBs out in the county too for example my area of Owings Mills; it’s close to the metro and not far to downtown but still close to shopping, entertainment, schools and library’s.
Hope this helps- let me know if I can answer anything else for you.
7 Reply
Michele Velazquez
OP
Member since 2019 · 144 posts · 46 votes
4y
Quote from @Mike Davis:

If investing in Baltimore City, make sure the properties you look at are accessible and you can get in to complete a REHAB budget with a contractor. I have clients that have had issues with this.

Do you mean how some properties say as is or tenant occupied?
0 Reply
Sean MonahanPro Member
Real Estate Agent · 21224 · Member since 2018 · 98 posts · 61 votes
4y
Baltimore is excellent if you know where to look and it conforms with your goals. As you will see in the forums Baltimore is very Block by Block. What are your long term goals? I am a buy and hold investor and agent in the area and I love Highlandtown, Canton, Fed Hill, Fells Point and parts of Baltimore County. Cash flow was minimal at first but continues to grow every year and these A and B class areas have no shortage of rental needs and have had great appreciation for me. Multifamily can be difficult to make cash flow initially in good areas but a strategy I've adopted is buying nicer homes and renting by the room to traveling professionals for a greater cash flow. There is more work involved but the rewards have been great for me and my investing career.
2 Reply
Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
4y
Quote from @Michele Velazquez:

Quote from @Nick Shri:

Quote from @Michele Velazquez:

I have been doing a lot of research on where to buy my first multi- family unit and I found Baltimore interesting. I wanted to know what experience you have had investing there? My goal is cash flow and decent appreciation. TIA
With your goals stay out of Baltimore. First of all MD is a tenant friendly state. Have you looked at Baltimore stats in terms of economic growth, population growth etc? The properties in Baltimore are ridiculously cheap for a reason. I haven't see much appreciation in Baltimore over past few years. If you are looking for CF AND decent appreciation, look in mid-west, buy off-market below market value and you will meet both of your goals.

Good luck..

I have done a lot of research. What I thought was interesting is the initiative the city is taking to build the city up. https://www.baltimoreniif.org/ I also found a lot of interesting information here: https://www.noradarealestate.c... and other lists that I found calling out Baltimore as an up and coming market. I am considering Ohio too?

Ohio would be a great market. Your money will go very far, you'd be able to pick up a multifamily portfolio and start your cash flow. Not to mention Ohio is a landlord-friendly state.
0 Reply
Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
4y
@Michele Velazquez you're in California, right? Sure, you can invest in Baltimore, but I think it's going to be tough to get your Core 4 built up from that far away, and it would be a lot easier to pick a market within 2 or 4 hours of you in CA. There are major, drastic differences among Baltimore neighborhoods and even street by street in some cases...
0 Reply
Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
4y
Just take a look at posts like these....
https://www.biggerpockets.com/...
0 Reply
Michele Velazquez
OP
Member since 2019 · 144 posts · 46 votes
4y
Quote from @Nicholas L.:

Just take a look at posts like these....
https://www.biggerpockets.com/...

Yea I mean it sounds like they had a bad property manager and didn't pay attention to their inspection report. I manage my business remotely, I think I can do it with a good team! I am not just in California, I live in Orange County CA. A 2 hour drive doesn't put me in affordable territory sadly and I have a family and several businesses, I can't drive 2 hours anyway lol
0 Reply
Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
4y
@Michele Velazquez I'm not at all saying it can't be done - it can! I just think that Baltimore might be one of the absolute toughest markets to invest in from California.
0 Reply
Michele Velazquez
OP
Member since 2019 · 144 posts · 46 votes
4y
Quote from @Nicholas L.:

@Michele Velazquez I'm not at all saying it can't be done - it can! I just think that Baltimore might be one of the absolute toughest markets to invest in from California.

Right, i hear ya!
0 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
4y
You should reach out to @Sara Frank. She is a top notch multifamily agent in Baltimore
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
0 Reply
Sara Frank
Realtor · Baltimore, MD · Member since 2020 · 255 posts · 182 votes
4y
There are some awesome neighborhoods in Baltimore, just have a higher acquisition price. If you pay bottom dollar prices for properties you will make up for those "savings" in repairs, negative tenant experiences, etc.

Another consideration is property taxes, they are pretty high in Bmore and can eat into your cash flow depending on what financing you use. In such an inflationary environment, I recommend looking for something as turnkey as possible in Canton, Fed Hill, Fells Point, Locust Point... the cost of doing a rehab right now is a lot of time and money.

@Sean Monahanundefined
1 Reply
Dwight Gholson
New to Real Estate · Washington, DC · Member since 2018 · 18 posts · 7 votes
4y
Quote from @Sara Frank:

There are some awesome neighborhoods in Baltimore, just have a higher acquisition price. If you pay bottom dollar prices for properties you will make up for those "savings" in repairs, negative tenant experiences, etc.

Another consideration is property taxes, they are pretty high in Bmore and can eat into your cash flow depending on what financing you use. In such an inflationary environment, I recommend looking for something as turnkey as possible in Canton, Fed Hill, Fells Point, Locust Point... the cost of doing a rehab right now is a lot of time and money.

@Sean Monahanundefined

@Sara Frank are Baltimore City and Baltimore County tax rates pretty similar or is one better than the other?
0 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
4y
Quote from @Dwight Gholson:

Quote from @Sara Frank:

There are some awesome neighborhoods in Baltimore, just have a higher acquisition price. If you pay bottom dollar prices for properties you will make up for those "savings" in repairs, negative tenant experiences, etc.

Another consideration is property taxes, they are pretty high in Bmore and can eat into your cash flow depending on what financing you use. In such an inflationary environment, I recommend looking for something as turnkey as possible in Canton, Fed Hill, Fells Point, Locust Point... the cost of doing a rehab right now is a lot of time and money.

@Sean Monahanundefined

@Sara Frank are Baltimore City and Baltimore County tax rates pretty similar or is one better than the other?

Baltimore City tax rate is 2.26%
Baltimore County is 1.2%
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
1 Reply
Mike Goikhberg
Catonsville, MD · Member since 2016 · 41 posts · 12 votes
4y
Quote from @Russell Brazil:

Quote from @Dwight Gholson:

Quote from @Sara Frank:

There are some awesome neighborhoods in Baltimore, just have a higher acquisition price. If you pay bottom dollar prices for properties you will make up for those "savings" in repairs, negative tenant experiences, etc.

Another consideration is property taxes, they are pretty high in Bmore and can eat into your cash flow depending on what financing you use. In such an inflationary environment, I recommend looking for something as turnkey as possible in Canton, Fed Hill, Fells Point, Locust Point... the cost of doing a rehab right now is a lot of time and money.

@Sean Monahanundefined

@Sara Frank are Baltimore City and Baltimore County tax rates pretty similar or is one better than the other?

Baltimore City tax rate is 2.26%
Baltimore County is 1.2%

Does that city tax rate vary somehow? I don't know why but I keep seeing calculations working out to it being 2.35 sometimes, other times i've seen it come up to 2.5. Am i just losing my mind here
0 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
4y
Quote from @Mike Goikhberg:

Quote from @Russell Brazil:

Quote from @Dwight Gholson:

Quote from @Sara Frank:

There are some awesome neighborhoods in Baltimore, just have a higher acquisition price. If you pay bottom dollar prices for properties you will make up for those "savings" in repairs, negative tenant experiences, etc.

Another consideration is property taxes, they are pretty high in Bmore and can eat into your cash flow depending on what financing you use. In such an inflationary environment, I recommend looking for something as turnkey as possible in Canton, Fed Hill, Fells Point, Locust Point... the cost of doing a rehab right now is a lot of time and money.

@Sean Monahanundefined

@Sara Frank are Baltimore City and Baltimore County tax rates pretty similar or is one better than the other?

Baltimore City tax rate is 2.26%
Baltimore County is 1.2%

Does that city tax rate vary somehow? I don't know why but I keep seeing calculations working out to it being 2.35 sometimes, other times i've seen it come up to 2.5. Am i just losing my mind here

Look at the tax record. Maybe there's an additional special tax on the property for some reason..
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
0 Reply
Ozzy SirimsiBusiness Member
Real Estate Agent · Baltimore, MD · Member since 2016 · 1k+ posts · 782 votes
4y
As a Baltimore City investor, it has been great to me.
It all depends on where you buy your property, and how much you want to spend.
If you are coming in to spend as low as possible then you are taking some risks. It sometimes pays off well and sometimes becomes a nightmare.
If you are looking to spend higher than 150+ for 2 units and more then you can be in good area but if you are looking to spend 100K, buy 3 units or something, then you accept the risk and act accordingly.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.