Not Going Well - Seeking Advice for Rental Property Challenges
Investor · Glen Burnie, MD · Member since 2017 · 22 posts · 3 votes
Not Going Well - Seeking Advice for Rental Property Challenges
Most Popular Reply
Member since 2018 · 1k+ posts · 1k+ votes
2yQuote from @Ade Akingbade:
Last month, I purchased my first rental property in Baltimore for $117k and invested an additional $13k in renovations. Since then, I've encountered several significant issues:
1. **Air Conditioning:** The AC unit is malfunctioning.
2. **Basement Water Damage:** The walls in the basement are wet up to 15 inches, and it appears that water is seeping in from the ground.
3. **Neighboring Property Condition:** The adjacent row house doesn't have a roof, which may be contributing to my issues.
Additionally, I'm struggling to find a tenant. I'm considering selling the property, but the financial numbers don't seem to justify this move. A little overwhelmed!
I would greatly appreciate feedback from those with experience in property management or similar challenges. Any advice or insights would be valuable.
Thank you!
was the water damage visible in the basement when you bought?
Stop looking at purchase numbers. You don’t have the experience. Dump this place, buy a decent place near where you live that doesn’t have physical issues. Start small, slow, and smart.
30 Replies
- Member since 2018 · 1k+ posts · 1k+ votes2yWhy are you buying where the neighboring buildings don’t have roofs?
Quote from @Ade Akingbade:
Last month, I purchased my first rental property in Baltimore for $117k and invested an additional $13k in renovations. Since then, I've encountered several significant issues:
1. **Air Conditioning:** The AC unit is malfunctioning.
2. **Basement Water Damage:** The walls in the basement are wet up to 15 inches, and it appears that water is seeping in from the ground.
3. **Neighboring Property Condition:** The adjacent row house doesn't have a roof, which may be contributing to my issues.
Additionally, I'm struggling to find a tenant. I'm considering selling the property, but the financial numbers don't seem to justify this move. A little overwhelmed!
I would greatly appreciate feedback from those with experience in property management or similar challenges. Any advice or insights would be valuable.
Thank you!
was the water damage visible in the basement when you bought?
Stop looking at purchase numbers. You don’t have the experience. Dump this place, buy a decent place near where you live that doesn’t have physical issues. Start small, slow, and smart. - 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @John Clark:
Why are you buying where the neighboring buildings don’t have roofs?Quote from @Ade Akingbade:
Last month, I purchased my first rental property in Baltimore for $117k and invested an additional $13k in renovations. Since then, I've encountered several significant issues:
1. **Air Conditioning:** The AC unit is malfunctioning.
2. **Basement Water Damage:** The walls in the basement are wet up to 15 inches, and it appears that water is seeping in from the ground.
3. **Neighboring Property Condition:** The adjacent row house doesn't have a roof, which may be contributing to my issues.
Additionally, I'm struggling to find a tenant. I'm considering selling the property, but the financial numbers don't seem to justify this move. A little overwhelmed!
I would greatly appreciate feedback from those with experience in property management or similar challenges. Any advice or insights would be valuable.
Thank you!
was the water damage visible in the basement when you bought?
Stop looking at purchase numbers. You don’t have the experience. Dump this place, buy a decent place near where you live that doesn’t have physical issues. Start small, slow, and smart.
I fund a few investors in BALT row houses which there are thousands of them.. my clients rule number one is never buy a unit next to what they call a SHELL thats a house with 4 walls no roof and not much interior. the issues you describe are common for props with Shells next to them. - Investor · Glen Burnie, MD · Member since 2017 · 22 posts · 3 votes2y
Quote from @John Clark:
Why are you buying where the neighboring buildings don’t have roofs?Quote from @Ade Akingbade:
Last month, I purchased my first rental property in Baltimore for $117k and invested an additional $13k in renovations. Since then, I've encountered several significant issues:
1. **Air Conditioning:** The AC unit is malfunctioning.
2. **Basement Water Damage:** The walls in the basement are wet up to 15 inches, and it appears that water is seeping in from the ground.
3. **Neighboring Property Condition:** The adjacent row house doesn't have a roof, which may be contributing to my issues.
Additionally, I'm struggling to find a tenant. I'm considering selling the property, but the financial numbers don't seem to justify this move. A little overwhelmed!
I would greatly appreciate feedback from those with experience in property management or similar challenges. Any advice or insights would be valuable.
Thank you!
was the water damage visible in the basement when you bought?
Stop looking at purchase numbers. You don’t have the experience. Dump this place, buy a decent place near where you live that doesn’t have physical issues. Start small, slow, and smart.I 100% agree if i dump it now i will lose money. Guess the earlier the better.
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes2y
Quote from @Ade Akingbade:
Last month, I purchased my first rental property in Baltimore for $117k and invested an additional $13k in renovations. Since then, I've encountered several significant issues:
1. **Air Conditioning:** The AC unit is malfunctioning.
2. **Basement Water Damage:** The walls in the basement are wet up to 15 inches, and it appears that water is seeping in from the ground.
3. **Neighboring Property Condition:** The adjacent row house doesn't have a roof, which may be contributing to my issues.
Additionally, I'm struggling to find a tenant. I'm considering selling the property, but the financial numbers don't seem to justify this move. A little overwhelmed!
I would greatly appreciate feedback from those with experience in property management or similar challenges. Any advice or insights would be valuable.
Thank you!
$100k neighborhoods in Baltimore aren't for beginners or light of heart. If a newbie is investing in Baltimore City, they should stick to the locations where the housing stock is in better repair, the tenant base is better, and where there is rental demand. I wouldn't touch a rowhouse in Baltimore under $200k, and would preferably want to be in the $250k plus neighborhoods.
District Invest Group545 Reviews - 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Russell Brazil:
Quote from @Ade Akingbade:
Last month, I purchased my first rental property in Baltimore for $117k and invested an additional $13k in renovations. Since then, I've encountered several significant issues:
1. **Air Conditioning:** The AC unit is malfunctioning.
2. **Basement Water Damage:** The walls in the basement are wet up to 15 inches, and it appears that water is seeping in from the ground.
3. **Neighboring Property Condition:** The adjacent row house doesn't have a roof, which may be contributing to my issues.
Additionally, I'm struggling to find a tenant. I'm considering selling the property, but the financial numbers don't seem to justify this move. A little overwhelmed!
I would greatly appreciate feedback from those with experience in property management or similar challenges. Any advice or insights would be valuable.
Thank you!
$100k neighborhoods in Baltimore aren't for beginners or light of heart. If a newbie is investing in Baltimore City, they should stick to the locations where the housing stock is in better repair, the tenant base is better, and where there is rental demand. I wouldn't touch a rowhouse in Baltimore under $200k, and would preferably want to be in the $250k plus neighborhoods.
my clients BRRR and 80% of the props I fund get refinanced with 220 to 300k apprasials.. I mean really where can you buy a rehab home in a big metro on the east coast for those dollars.. - Investor · Glen Burnie, MD · Member since 2017 · 22 posts · 3 votes2y
Quote from @Russell Brazil:
Quote from @Ade Akingbade:
Last month, I purchased my first rental property in Baltimore for $117k and invested an additional $13k in renovations. Since then, I've encountered several significant issues:
1. **Air Conditioning:** The AC unit is malfunctioning.
2. **Basement Water Damage:** The walls in the basement are wet up to 15 inches, and it appears that water is seeping in from the ground.
3. **Neighboring Property Condition:** The adjacent row house doesn't have a roof, which may be contributing to my issues.
Additionally, I'm struggling to find a tenant. I'm considering selling the property, but the financial numbers don't seem to justify this move. A little overwhelmed!
I would greatly appreciate feedback from those with experience in property management or similar challenges. Any advice or insights would be valuable.
Thank you!
$100k neighborhoods in Baltimore aren't for beginners or light of heart. If a newbie is investing in Baltimore City, they should stick to the locations where the housing stock is in better repair, the tenant base is better, and where there is rental demand. I wouldn't touch a rowhouse in Baltimore under $200k, and would preferably want to be in the $250k plus neighborhoods.
Thanks, Russell. I am here now, any go forward advice?
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes2y
Quote from @Ade Akingbade:
Quote from @Russell Brazil:
Quote from @Ade Akingbade:
Last month, I purchased my first rental property in Baltimore for $117k and invested an additional $13k in renovations. Since then, I've encountered several significant issues:
1. **Air Conditioning:** The AC unit is malfunctioning.
2. **Basement Water Damage:** The walls in the basement are wet up to 15 inches, and it appears that water is seeping in from the ground.
3. **Neighboring Property Condition:** The adjacent row house doesn't have a roof, which may be contributing to my issues.
Additionally, I'm struggling to find a tenant. I'm considering selling the property, but the financial numbers don't seem to justify this move. A little overwhelmed!
I would greatly appreciate feedback from those with experience in property management or similar challenges. Any advice or insights would be valuable.
Thank you!
$100k neighborhoods in Baltimore aren't for beginners or light of heart. If a newbie is investing in Baltimore City, they should stick to the locations where the housing stock is in better repair, the tenant base is better, and where there is rental demand. I wouldn't touch a rowhouse in Baltimore under $200k, and would preferably want to be in the $250k plus neighborhoods.
Thanks, Russell. I am here now, any go forward advice?
The fact you got a shell with no roof next door makes a solution pretty hard to be honest. You're going to continue to have water problems til there is a roof on that property.
What's the ARV? Can you flip the property? What's the address?
District Invest Group545 Reviews - Investor · Glen Burnie, MD · Member since 2017 · 22 posts · 3 votes2y
Quote from @Russell Brazil:
Quote from @Ade Akingbade:
Quote from @Russell Brazil:
Quote from @Ade Akingbade:
Last month, I purchased my first rental property in Baltimore for $117k and invested an additional $13k in renovations. Since then, I've encountered several significant issues:
1. **Air Conditioning:** The AC unit is malfunctioning.
2. **Basement Water Damage:** The walls in the basement are wet up to 15 inches, and it appears that water is seeping in from the ground.
3. **Neighboring Property Condition:** The adjacent row house doesn't have a roof, which may be contributing to my issues.
Additionally, I'm struggling to find a tenant. I'm considering selling the property, but the financial numbers don't seem to justify this move. A little overwhelmed!
I would greatly appreciate feedback from those with experience in property management or similar challenges. Any advice or insights would be valuable.
Thank you!
$100k neighborhoods in Baltimore aren't for beginners or light of heart. If a newbie is investing in Baltimore City, they should stick to the locations where the housing stock is in better repair, the tenant base is better, and where there is rental demand. I wouldn't touch a rowhouse in Baltimore under $200k, and would preferably want to be in the $250k plus neighborhoods.
Thanks, Russell. I am here now, any go forward advice?
The fact you got a shell with no roof next door makes a solution pretty hard to be honest. You're going to continue to have water problems til there is a roof on that property.
What's the ARV? Can you flip the property? What's the address?
Thank you, I just sent you a connection request with the address.
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes2y
Quote from @Jay Hinrichs:
Quote from @Russell Brazil:
Quote from @Ade Akingbade:
Last month, I purchased my first rental property in Baltimore for $117k and invested an additional $13k in renovations. Since then, I've encountered several significant issues:
1. **Air Conditioning:** The AC unit is malfunctioning.
2. **Basement Water Damage:** The walls in the basement are wet up to 15 inches, and it appears that water is seeping in from the ground.
3. **Neighboring Property Condition:** The adjacent row house doesn't have a roof, which may be contributing to my issues.
Additionally, I'm struggling to find a tenant. I'm considering selling the property, but the financial numbers don't seem to justify this move. A little overwhelmed!
I would greatly appreciate feedback from those with experience in property management or similar challenges. Any advice or insights would be valuable.
Thank you!
$100k neighborhoods in Baltimore aren't for beginners or light of heart. If a newbie is investing in Baltimore City, they should stick to the locations where the housing stock is in better repair, the tenant base is better, and where there is rental demand. I wouldn't touch a rowhouse in Baltimore under $200k, and would preferably want to be in the $250k plus neighborhoods.
my clients BRRR and 80% of the props I fund get refinanced with 220 to 300k apprasials.. I mean really where can you buy a rehab home in a big metro on the east coast for those dollars..There's a reason Baltimore prices are what they are, even though it's a coastal city. The population has gone from 1,000,000 to 500,000 over the last 75 years. Decling population = declining demand. 25,000 vacant and abandoned homes. Another 25,000 vacant and abandoned lots that once had homes on them the city or time tore down.
There's a few locations that are OK. Mostly around the harbor and through the dead center of the city. But even those areas still suffer from the crushing property tax rate, and the other issues the city has.
District Invest Group545 Reviews - 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Russ, my point was about lack of affordable housing.. and 200k to 300k is below the national median and affordable.. so its up to folks that want affordable houses to buy what they can afford .
this way they get out of being life long renters and they build equity etc..
Just like the hundreds of thousands of houses in the mid west that are 150k an under.. But then again I guess depends on where folks want to live ..
sometimes to get started you need to sacrifice location to get in the game so your not a lifelong renter.
- Real Estate Agent · Washington DC · Member since 2016 · 847 posts · 656 votes2y
Quote from @Jay Hinrichs:
Russ, my point was about lack of affordable housing.. and 200k to 300k is below the national median and affordable.. so its up to folks that want affordable houses to buy what they can afford .
this way they get out of being life long renters and they build equity etc..
Just like the hundreds of thousands of houses in the mid west that are 150k an under.. But then again I guess depends on where folks want to live ..
sometimes to get started you need to sacrifice location to get in the game so your not a lifelong renter.
The biggest issue for Baltimore and frankly any rust belt city is the rise of remote work, Baltimore is cheap for a major job center, but it’s not that cheap period, pretty much any area west of Frederick county or east of the bay bridge has ample housing stock for sub 300k and imo a better quality of life, so the one thing that Baltimore has going for it pre-pandemic which was a pretty solid mix of Fortune 500 companies located downtown has been significantly reduced & downtown is a ghostown now. Honestly even at the sub 300kpp I could come up with easily half a dozen areas in the state, i’d rather be in the Baltimore.
I rarely say this, but tap out bro. Either get a strong team in Baltimore to give you better options or a CPAs advice to structure your way out of this as a win.
Don't consider this specific experience a loss, but disconnect from this investment as a loss.
- 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Jack Seiden:
Quote from @Jay Hinrichs:
Russ, my point was about lack of affordable housing.. and 200k to 300k is below the national median and affordable.. so its up to folks that want affordable houses to buy what they can afford .
this way they get out of being life long renters and they build equity etc..
Just like the hundreds of thousands of houses in the mid west that are 150k an under.. But then again I guess depends on where folks want to live ..
sometimes to get started you need to sacrifice location to get in the game so your not a lifelong renter.
The biggest issue for Baltimore and frankly any rust belt city is the rise of remote work, Baltimore is cheap for a major job center, but it’s not that cheap period, pretty much any area west of Frederick county or east of the bay bridge has ample housing stock for sub 300k and imo a better quality of life, so the one thing that Baltimore has going for it pre-pandemic which was a pretty solid mix of Fortune 500 companies located downtown has been significantly reduced & downtown is a ghostown now. Honestly even at the sub 300kpp I could come up with easily half a dozen areas id rather be in the Baltimore.
ya know its not only the rust belt.. Look at SF Portland and Seattle.. big movement back to the burbs because of companies leaving. now they are leaving because of defund the police and homeless and other social issues have made living there undesirable to many.. I know personally I have benefit with my 90 home project 20 miles south of Downtown PDX.. I got 6 PDX officers and another 10 or more folks that left the urban environment for our burb or little 22k pop city. values are high still though in the city so there is that to.. I mean they can buy a very custom home from me for 750 to 850k and sell their old 50 year old tired home for almost the same thing big difference you dont step over the homeless walking to starbucks.
I think the other thing that will keep some folks in the urban core is because well thats where their family is and they are not going to move ..
Interesting times for us in the RE space..
but like all things its location location location.
I am invested in a couple projects in Loudoun County VA.. Which we have pre sold to some of the major builders like Toll or Lennar and some regional I cant recall the name.. But each one of our plat we are prosecuting in that market is getting 6 to 10 offers on it from these top end new home builders..
My last trip out I went by some of the product and while the area is really cool I think quite attractive the lots very large and the homes pretty large.. the build quality for 900 to 1.3 or so was just about what we would see for starter production stuff out our way.. Vinyl siding limited trim and finish work builder grade cabs and appliances.. they were basically just big box's on larger lots and thats what is driving the price.. Lot values. location location location. I am super stoked to be involved with that area though.. So from funding balt city row houses to loudoun county :) - Real Estate Agent · Washington DC · Member since 2016 · 847 posts · 656 votes2y
Quote from @Jay Hinrichs:
Quote from @Jack Seiden:
Quote from @Jay Hinrichs:
Russ, my point was about lack of affordable housing.. and 200k to 300k is below the national median and affordable.. so its up to folks that want affordable houses to buy what they can afford .
this way they get out of being life long renters and they build equity etc..
Just like the hundreds of thousands of houses in the mid west that are 150k an under.. But then again I guess depends on where folks want to live ..
sometimes to get started you need to sacrifice location to get in the game so your not a lifelong renter.
The biggest issue for Baltimore and frankly any rust belt city is the rise of remote work, Baltimore is cheap for a major job center, but it’s not that cheap period, pretty much any area west of Frederick county or east of the bay bridge has ample housing stock for sub 300k and imo a better quality of life, so the one thing that Baltimore has going for it pre-pandemic which was a pretty solid mix of Fortune 500 companies located downtown has been significantly reduced & downtown is a ghostown now. Honestly even at the sub 300kpp I could come up with easily half a dozen areas id rather be in the Baltimore.
ya know its not only the rust belt.. Look at SF Portland and Seattle.. big movement back to the burbs because of companies leaving. now they are leaving because of defund the police and homeless and other social issues have made living there undesirable to many.. I know personally I have benefit with my 90 home project 20 miles south of Downtown PDX.. I got 6 PDX officers and another 10 or more folks that left the urban environment for our burb or little 22k pop city. values are high still though in the city so there is that to.. I mean they can buy a very custom home from me for 750 to 850k and sell their old 50 year old tired home for almost the same thing big difference you dont step over the homeless walking to starbucks.
I think the other thing that will keep some folks in the urban core is because well thats where their family is and they are not going to move ..
Interesting times for us in the RE space..
but like all things its location location location.
I am invested in a couple projects in Loudoun County VA.. Which we have pre sold to some of the major builders like Toll or Lennar and some regional I cant recall the name.. But each one of our plat we are prosecuting in that market is getting 6 to 10 offers on it from these top end new home builders..
My last trip out I went by some of the product and while the area is really cool I think quite attractive the lots very large and the homes pretty large.. the build quality for 900 to 1.3 or so was just about what we would see for starter production stuff out our way.. Vinyl siding limited trim and finish work builder grade cabs and appliances.. they were basically just big box's on larger lots and thats what is driving the price.. Lot values. location location location. I am super stoked to be involved with that area though.. So from funding balt city row houses to loudoun county :)Yeah it’s funny even on a personal level I lived in D.C. last year and the crime while I was never a victim there were probably at least a half dozen shootings within a few blocks a my apartment (which was literally across from where the nats play, a good part of town) and literally so many car jackings I lost count, eventually at the end of the year I was like I’m not paying 3k a month to have constant shootings next door, I’ve ended up for a variety of reasons spending at town of time on the eastern shore, and I kind of realized this is walkable & safe & affordable, I kind of think small towns are the future.
- 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Jack Seiden:
Quote from @Jay Hinrichs:
Quote from @Jack Seiden:
Quote from @Jay Hinrichs:
Russ, my point was about lack of affordable housing.. and 200k to 300k is below the national median and affordable.. so its up to folks that want affordable houses to buy what they can afford .
this way they get out of being life long renters and they build equity etc..
Just like the hundreds of thousands of houses in the mid west that are 150k an under.. But then again I guess depends on where folks want to live ..
sometimes to get started you need to sacrifice location to get in the game so your not a lifelong renter.
The biggest issue for Baltimore and frankly any rust belt city is the rise of remote work, Baltimore is cheap for a major job center, but it’s not that cheap period, pretty much any area west of Frederick county or east of the bay bridge has ample housing stock for sub 300k and imo a better quality of life, so the one thing that Baltimore has going for it pre-pandemic which was a pretty solid mix of Fortune 500 companies located downtown has been significantly reduced & downtown is a ghostown now. Honestly even at the sub 300kpp I could come up with easily half a dozen areas id rather be in the Baltimore.
ya know its not only the rust belt.. Look at SF Portland and Seattle.. big movement back to the burbs because of companies leaving. now they are leaving because of defund the police and homeless and other social issues have made living there undesirable to many.. I know personally I have benefit with my 90 home project 20 miles south of Downtown PDX.. I got 6 PDX officers and another 10 or more folks that left the urban environment for our burb or little 22k pop city. values are high still though in the city so there is that to.. I mean they can buy a very custom home from me for 750 to 850k and sell their old 50 year old tired home for almost the same thing big difference you dont step over the homeless walking to starbucks.
I think the other thing that will keep some folks in the urban core is because well thats where their family is and they are not going to move ..
Interesting times for us in the RE space..
but like all things its location location location.
I am invested in a couple projects in Loudoun County VA.. Which we have pre sold to some of the major builders like Toll or Lennar and some regional I cant recall the name.. But each one of our plat we are prosecuting in that market is getting 6 to 10 offers on it from these top end new home builders..
My last trip out I went by some of the product and while the area is really cool I think quite attractive the lots very large and the homes pretty large.. the build quality for 900 to 1.3 or so was just about what we would see for starter production stuff out our way.. Vinyl siding limited trim and finish work builder grade cabs and appliances.. they were basically just big box's on larger lots and thats what is driving the price.. Lot values. location location location. I am super stoked to be involved with that area though.. So from funding balt city row houses to loudoun county :)Yeah it’s funny even on a personal level I lived in D.C. last year and the crime while I was never a victim there were probably at least a half dozen shootings within a few blocks a my apartment (which was literally across from where the nats play, a good part of town) and literally so many car jackings I lost count, eventually at the end of the year I was like I’m not paying 3k a month to have constant shootings next door, I’ve ended up for a variety of reasons spending at town of time on the eastern shore, and I kind of realized this is walkable & safe & affordable, I kind of think small towns are the future.
yup work from home is deja vu all over again.. I know in ATL with its bad traffic .. lots of folks moved out of the city for the burbs then 10 years or so ago infill became the rage as folks tired of bad traffic wanted back in the urban areas with less commute time.. not sure where it stands today.
I know personally I am a little worried about moving back to Vegas in a Few years even though we are in Summerlin in a gated community etc etc.. still things go on there.. Where i live here in Lake Oswego has been very nice and very safe at least for the last 10 years. its just got crappy weather and the social issues of the state politics get to be too much . When folks tire of this here they go to Idaho or Montana :) If I was to move back East it would be Charleston SC.. I built a bunch of houses there an loved it.. prices have SKY rocketed there though holy cow. cant believe the appreciation there.. very under the radar but limited land and houses great place lots of money people and there ya go values through the roof. - Real Estate Agent · Washington DC · Member since 2016 · 847 posts · 656 votes2y
Quote from @Jay Hinrichs:
Quote from @Jack Seiden:
Quote from @Jay Hinrichs:
Quote from @Jack Seiden:
Quote from @Jay Hinrichs:
Russ, my point was about lack of affordable housing.. and 200k to 300k is below the national median and affordable.. so its up to folks that want affordable houses to buy what they can afford .
this way they get out of being life long renters and they build equity etc..
Just like the hundreds of thousands of houses in the mid west that are 150k an under.. But then again I guess depends on where folks want to live ..
sometimes to get started you need to sacrifice location to get in the game so your not a lifelong renter.
The biggest issue for Baltimore and frankly any rust belt city is the rise of remote work, Baltimore is cheap for a major job center, but it’s not that cheap period, pretty much any area west of Frederick county or east of the bay bridge has ample housing stock for sub 300k and imo a better quality of life, so the one thing that Baltimore has going for it pre-pandemic which was a pretty solid mix of Fortune 500 companies located downtown has been significantly reduced & downtown is a ghostown now. Honestly even at the sub 300kpp I could come up with easily half a dozen areas id rather be in the Baltimore.
ya know its not only the rust belt.. Look at SF Portland and Seattle.. big movement back to the burbs because of companies leaving. now they are leaving because of defund the police and homeless and other social issues have made living there undesirable to many.. I know personally I have benefit with my 90 home project 20 miles south of Downtown PDX.. I got 6 PDX officers and another 10 or more folks that left the urban environment for our burb or little 22k pop city. values are high still though in the city so there is that to.. I mean they can buy a very custom home from me for 750 to 850k and sell their old 50 year old tired home for almost the same thing big difference you dont step over the homeless walking to starbucks.
I think the other thing that will keep some folks in the urban core is because well thats where their family is and they are not going to move ..
Interesting times for us in the RE space..
but like all things its location location location.
I am invested in a couple projects in Loudoun County VA.. Which we have pre sold to some of the major builders like Toll or Lennar and some regional I cant recall the name.. But each one of our plat we are prosecuting in that market is getting 6 to 10 offers on it from these top end new home builders..
My last trip out I went by some of the product and while the area is really cool I think quite attractive the lots very large and the homes pretty large.. the build quality for 900 to 1.3 or so was just about what we would see for starter production stuff out our way.. Vinyl siding limited trim and finish work builder grade cabs and appliances.. they were basically just big box's on larger lots and thats what is driving the price.. Lot values. location location location. I am super stoked to be involved with that area though.. So from funding balt city row houses to loudoun county :)Yeah it’s funny even on a personal level I lived in D.C. last year and the crime while I was never a victim there were probably at least a half dozen shootings within a few blocks a my apartment (which was literally across from where the nats play, a good part of town) and literally so many car jackings I lost count, eventually at the end of the year I was like I’m not paying 3k a month to have constant shootings next door, I’ve ended up for a variety of reasons spending at town of time on the eastern shore, and I kind of realized this is walkable & safe & affordable, I kind of think small towns are the future.
yup work from home is deja vu all over again.. I know in ATL with its bad traffic .. lots of folks moved out of the city for the burbs then 10 years or so ago infill became the rage as folks tired of bad traffic wanted back in the urban areas with less commute time.. not sure where it stands today.
I know personally I am a little worried about moving back to Vegas in a Few years even though we are in Summerlin in a gated community etc etc.. still things go on there.. Where i live here in Lake Oswego has been very nice and very safe at least for the last 10 years. its just got crappy weather and the social issues of the state politics get to be too much . When folks tire of this here they go to Idaho or Montana :) If I was to move back East it would be Charleston SC.. I built a bunch of houses there an loved it.. prices have SKY rocketed there though holy cow. cant believe the appreciation there.. very under the radar but limited land and houses great place lots of money people and there ya go values through the roof.You know it’s funny back when I was flipping in dc pre covid, I was always amazed at the prices and in the back of my head was like I cannot believe people are paying 800-1 million to be in a tiny rowhome in a frankly pretty rough area, now of course everyone who didn’t grow up here throught it was just was the way it was, but growing up here I tried to explain to everyone just how bizzare it was that the city was so much more than then the burbs, (from 06 on there were entire areas that went up fourfold, where as the burbs were kind of flat for a decade) I won’t say I saw dc’s crash coming but it seemed so unnatural to me having grown up in the area, I also don’t think we’ve seen close to the bottom as far as urban real estate, as you said you can still trade a house in the city for one in the burbs but really given how urban living is + remote works, cities should be significantly less than an equivalent burb.
Quote from @Ade Akingbade:
Last month, I purchased my first rental property in Baltimore for $117k and invested an additional $13k in renovations. Since then, I've encountered several significant issues:
1. **Air Conditioning:** The AC unit is malfunctioning.
2. **Basement Water Damage:** The walls in the basement are wet up to 15 inches, and it appears that water is seeping in from the ground.
3. **Neighboring Property Condition:** The adjacent row house doesn't have a roof, which may be contributing to my issues.
Additionally, I'm struggling to find a tenant. I'm considering selling the property, but the financial numbers don't seem to justify this move. A little overwhelmed!
I would greatly appreciate feedback from those with experience in property management or similar challenges. Any advice or insights would be valuable.
Thank you!
The issues you mentioned well, you saw the area when you purchased it soooo? AC unit, ok so put in a new one, ( should have been in your reno budget ) Water damage, didn't you see it when you walked it ? Cant find a tenant, hire a PM co, tenants are the easy part, especially govt
Sorry but everything you are complaining about is on you All were known BEFORE you purchased it. Not really sure what to say. except live and learn
Good luck
- 2yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
@Ade Akingbade so, you jumped in without looking and you're now in over your head.
You bought someone else's problem without a clear plan to turn it around.
Highly recommend dumping this property and taking whatever loss you have to.
Otherwise, you will just lose more money trying to fix this situation when you have no idea what you are doing.
Bring your funds to Detroit - which is growing!
We'd never let one of our clients make a mistake purchase like this:)
Logical Property Management4.9460 Reviews - 2yMark StoffelPro MemberInvestor · Atlanta, GA · Member since 2021 · 5 posts · 7 votesI'm just a guy finally posting on BP after years of reading while I built my business but I just wanted to offer your a different angle to look at the problem and say, "how much would it be to buy the shell house and roof it?" If it's less than the loss of selling now it might be in your best interest to expand instead of contract your operations. Row housing halves the cost to repair the wall water on a per unit basis and there are obvious additional values to having proximity to all units.
Quote from @Ade Akingbade:
Last month, I purchased my first rental property in Baltimore for $117k and invested an additional $13k in renovations. Since then, I've encountered several significant issues:
1. **Air Conditioning:** The AC unit is malfunctioning.
2. **Basement Water Damage:** The walls in the basement are wet up to 15 inches, and it appears that water is seeping in from the ground.
3. **Neighboring Property Condition:** The adjacent row house doesn't have a roof, which may be contributing to my issues.
Additionally, I'm struggling to find a tenant. I'm considering selling the property, but the financial numbers don't seem to justify this move. A little overwhelmed!
I would greatly appreciate feedback from those with experience in property management or similar challenges. Any advice or insights would be valuable.
Thank you!
Again, I'm just a guy so do your own homework but I've been there before, knee deep in raw sewage and when you're going through Hell, keep going. Good luck.
- 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Mark Stoffel:
I'm just a guy finally posting on BP after years of reading while I built my business but I just wanted to offer your a different angle to look at the problem and say, "how much would it be to buy the shell house and roof it?" If it's less than the loss of selling now it might be in your best interest to expand instead of contract your operations. Row housing halves the cost to repair the wall water on a per unit basis and there are obvious additional values to having proximity to all units.Quote from @Ade Akingbade:
Last month, I purchased my first rental property in Baltimore for $117k and invested an additional $13k in renovations. Since then, I've encountered several significant issues:
1. **Air Conditioning:** The AC unit is malfunctioning.
2. **Basement Water Damage:** The walls in the basement are wet up to 15 inches, and it appears that water is seeping in from the ground.
3. **Neighboring Property Condition:** The adjacent row house doesn't have a roof, which may be contributing to my issues.
Additionally, I'm struggling to find a tenant. I'm considering selling the property, but the financial numbers don't seem to justify this move. A little overwhelmed!
I would greatly appreciate feedback from those with experience in property management or similar challenges. Any advice or insights would be valuable.
Thank you!
Again, I'm just a guy so do your own homework but I've been there before, knee deep in raw sewage and when you're going through Hell, keep going. Good luck.
yes major benefit of those row houses is SMALL Roof and pretty simple to put back together. - Member since 2018 · 1k+ posts · 1k+ votes2yThe one state I will never willingly go back to.
Quote from @Jay Hinrichs:
Of course, my only experience with it is a “special interest” community located at a place called Parris Island. - 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @John Clark:
The one state I will never willingly go back to.Quote from @Jay Hinrichs:
Of course, my only experience with it is a “special interest” community located at a place called Parris Island.
all my work was downtown along with 4 big customs south of Broad in the very best neighborhoods.. I like it.. But I know for non owner occ prop tax's are an issue. Quote from @Mark Stoffel:
I'm just a guy finally posting on BP after years of reading while I built my business but I just wanted to offer your a different angle to look at the problem and say, "how much would it be to buy the shell house and roof it?" If it's less than the loss of selling now it might be in your best interest to expand instead of contract your operations. Row housing halves the cost to repair the wall water on a per unit basis and there are obvious additional values to having proximity to all units.Quote from @Ade Akingbade:
Last month, I purchased my first rental property in Baltimore for $117k and invested an additional $13k in renovations. Since then, I've encountered several significant issues:
1. **Air Conditioning:** The AC unit is malfunctioning.
2. **Basement Water Damage:** The walls in the basement are wet up to 15 inches, and it appears that water is seeping in from the ground.
3. **Neighboring Property Condition:** The adjacent row house doesn't have a roof, which may be contributing to my issues.
Additionally, I'm struggling to find a tenant. I'm considering selling the property, but the financial numbers don't seem to justify this move. A little overwhelmed!
I would greatly appreciate feedback from those with experience in property management or similar challenges. Any advice or insights would be valuable.
Thank you!
Again, I'm just a guy so do your own homework but I've been there before, knee deep in raw sewage and when you're going through Hell, keep going. Good luck.
Get longer a shittier property? Cutting your losses even if the 1:1 is a cheaper solution today is missing the forest for the trees. The capital you'd put in the house next door could yield higher elsewhere so think about the opportunity cost.
Don't get long **** properties.
- Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes2y
Too many rookie mistakes here. You should have reached out to experienced investors on BP. You are having trouble renting; REALLY? You cant get a license, pass an inspection or place tenants in a unit with 15 inches of water. Even if you get through that eventually, its very difficult to get stable, credible tenants to live in a place with no AC, next to homes with no roof. Already, I can see at a minimum tens of thousands before you are close to getting this rented. Its a matter of losing a manageable amount or massive amount. I would try to push it to an experienced investor who can navigate that stuff. You would have to sell at a level where the numbers would work but like I said; its better to lose 10k as opposed to 50k or more. Good luck!
- Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes2y
Sneak next door and throw a tarp over the roof
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