Philadelphia, PA · Member since 2014 · 28 posts · 6 votes
Hello BP Colleagues,
I am a newbie to the real estate investing business. My goal is to obtain a single family home or duplex in the next 6 months. I am currently researching markets in Baltimore City/County. Where are the best markets to own rental property? Are there any areas up and coming? Where are the jobs?
Investor · Washington, Washington D.C. · Member since 2014 · 96 posts · 39 votes
12y
I'm a relatively new investor in the city, but I don't necessarily think that there are any areas that are necessarily totally out of the question. That being said, make sure that you're researching the rental area in any area you are considering. You can buy properties for less than $5k in Bmore, but that may not necessarily be a good deal, if you know what I mean? Be wary of more than a few boarded up properties, unless you are planning to hold for a long time.
Here are a few resources that I have found helpful:
Narrow it down to a few neighborhoods that interest you and then definitely drive them. Some neighborhoods I had considered were quickly precluded as opportunities when I drove them. Best of luck!
Investor · Street, MD · Member since 2013 · 42 posts · 17 votes
12y
I have rental properties in 3 rental properties in Dundalk and 1 in Middle River. I like both of these areas. I know if it's a not a big sample but my property Middle River took a little bit longer to find a tenant than my Dundalk properties.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
12y
@Account Closed This is asked a lot but that is a surprisingly tough question to answer.
Baltimore City can be block by block as far as where to invest. Also your goals and resources make a difference too. I have some friends who love Mill Hill. They make killer cash flow there but many would not be comfortable in that low end of a neighborhood. Some investors want nice areas but are willing to accept less cash flow.
Dundalk is a fine choice but you need to do some driving. It will be obvious which are good, medium and bad neighborhoods.
Philadelphia, PA · Member since 2014 · 28 posts · 6 votes
12y
@Ned Carey Thanks for the response Ned. I guess I have to choose what Im more comfortable with in regard to higher and lower end neighborhoods. Like you said, goals and resources have alot to do with it too.
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
12y
Thanks Christina!
I agree with Ned regarding Dundalk. It's a fine place to invest, just be sure it's not awful. This will be easy to tell just by driving by the property. I have three duplexes in Dundalk...two are on Holabird Ave...one is on Lange St. Lange St is a little "rougher"--or at least has that history--but lately it's actually improving a lot. Now if only all of the landlords cared and kicked out the remaining trouble!
If you want a duplex, Dundalk is a great place to find one in Baltimore County. Dundalk and other places in B'more County such as Middle River has some nice single family homes as well!
I also suggest you talk to Susquehanna Bank for your mortgage needs. Good luck!
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
12y
Also, what is the large building under construction on Holabird Ave close to 95? I heard it's an Amazon distribution center. That sounds like it could be a good thing for the future.
invests in the county too and she can give you great insight
Thank you both for your insight. I will definitely give those areas a close look. The Amazon distribution center will definitely be a great for the area.
The distribution center is mostly automated so the people working there are six figure salary. They will not be living in the area, they will most likely purchasing sfh in a nicer area.
Investor · Jessup, MD · Member since 2013 · 437 posts · 180 votes
12y
@Account Closed
If you are looking for rentals that used by college students and families I would suggest the areas around Morgan St. and Loyola in Baltimore. Northwood, Hamilton, and the surrounding areas in between E Northern Parkway and E. 33rd St. Of course as @Ned Carey stated you need to drive through the areas.
Are you looking to self manage or hire a property manager. That makes a difference as well. Will you accept vouchers?
The county areas are mostly desired by investors, however, there is cash flow in the decent areas in the city.
Investor · Washington, Washington D.C. · Member since 2014 · 96 posts · 39 votes
12y
I'm a relatively new investor in the city, but I don't necessarily think that there are any areas that are necessarily totally out of the question. That being said, make sure that you're researching the rental area in any area you are considering. You can buy properties for less than $5k in Bmore, but that may not necessarily be a good deal, if you know what I mean? Be wary of more than a few boarded up properties, unless you are planning to hold for a long time.
Here are a few resources that I have found helpful:
Narrow it down to a few neighborhoods that interest you and then definitely drive them. Some neighborhoods I had considered were quickly precluded as opportunities when I drove them. Best of luck!
Baltimore, MD · Member since 2014 · 145 posts · 65 votes
12y
Dundalk is interesting. It's had some good press recently because the town has been trying to change its image. If you were from Maryland, Dundalk was the butt of a lot of jokes. I think that southeastern Baltimore County may be in for a some long term growth given the movement at Sparrows Point. There is certainly the appeal of buying in the path of progress, but I would be leary about potentially overpaying. From what I am seeing, prices are still reasonable now.
On another note, does anyone know anything about Westport? It was a real war zone about 5-8 years ago. Has it cleaned up at all?
What type of loan programs does Susquehanna bank have that you use? I called the ones in Columbia and it seemed they either weren't doing rental or rehab loans. Do they refinance out of houses once you have them fixed up? Do you have a point of contact with details that you can share?
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
12y
@Anil Samuel My partner and I chose to form a LLC to purchase rentals. Once formed, we went to the bank to set up a checking and savings. We talked to them about our business plan. All we did was fill out the paperwork, however, the mortgages are personally guaranteed. A month or two after forming our LLC and opening bank accounts, Susquehanna sent us a credit card with a $20K limit; we didn't even ask for this. This was in 2012.
With these commercial loans/mortgages, we are required to put down 25%. That can be the tough part coming up with the cash, but it can happen.
The first two properties we bought were turn-key, so no work really required. Our latest rental was somehow being lived in, but I required the seller to remove all tenants. After closing I fixed up the place and it's on the market for rent now. But this wasn't any different than the turn-key purchases. We didn't do a special rehab loan...we did just another commercial loan. They are commercial loans because the loan is to our LLC.
I'm not familiar with their rehab loans, if any. They do refinances though. I recommend you go talk to them in person at one of the branches. I am located in Columbia, so have only visited the branches there.
Before finding Susquehanna, I had talked to a few local banks and they all didn't sound promising even though their website said "investor friendly". Also, regarding insurance, I remember talking to one guy who said he couldn't insure the properties if the LLC partners weren't married. That baffled me. Perhaps the guy was putting his personal beliefs on things or simply had no clue what he was talking about. We use Statefarm for insurance as of now.
Investor · Baltimore, MD · Member since 2012 · 605 posts · 103 votes
12y
I remember calling Susquehanna bank. I think it's going to be better if I speak to a specific person because the person I was dealing said they were no longer doing residential investment property loans which is weird because multiple people have recommend them. So I believe I am taking to the wrong person. If I can get the financing setup that would be great. I find deals all the time, but the issue is generally loans. Typical investor dilemma!
I'm a relatively new investor in the city, but I don't necessarily think that there are any areas that are necessarily totally out of the question. That being said, make sure that you're researching the rental area in any area you are considering. You can buy properties for less than $5k in Bmore, but that may not necessarily be a good deal, if you know what I mean? Be wary of more than a few boarded up properties, unless you are planning to hold for a long time.
Here are a few resources that I have found helpful:
Narrow it down to a few neighborhoods that interest you and then definitely drive them. Some neighborhoods I had considered were quickly precluded as opportunities when I drove them. Best of luck!
Thanks for the resources and advice. Much appreciated!
Investor · Washington, DC · Member since 2014 · 27 posts · 8 votes
12y
@Account Closed , I have also found http://livebaltimore.com/ to be a nice resource in giving quick snapshots about individual neighborhoods, and offering some useful info as you're looking to narrow down your search. I'm planning on going up to Baltimore this weekend to take my own 'windshield tour' of some neighborhoods myself!
Homeowner · Elkridge, MD · Member since 2012 · 33 posts · 4 votes
12y
I live outside Baltimore and am planning on getting my first investment by the end of the this year (thats the goal I set for myself anyway). I have been hitting up Open houses and just driving around Baltimore on weekends for several months now.
Investor · Baltimore, MD · Member since 2014 · 1k+ posts · 688 votes
12y
Baltimore city has alot going for it as far as the rental market. Dundalk, though like most places, comes with its costs. Do you believe that it is better than inner city baltimore, really? Dundalk is full of the same quality individuals as everywhere else. People are killed there on occasion, property crime is consistent. The only difference is that the prices are higher and the shade of people is brighter.
Truth be told, baltimore is a region consisting of various types of properties. For lack of better categories....low middle and high. High are the fed hill, roland parks of the city...nice places in high demand that are very expensive. Numbers typically wont work because properties are too expensive. No problem getting high paying tenants. Medium might be nicer dundalk, northwood, remington, places like that. Arvs 100-200+, section 8 are getable if rhe place is nice and good tenants are gettable also. Requires experience and know how to know the difference. The right property is a money maker if managed correctly but can go the opposite direction quickly with a few bad tenants and/or mismanagement. Then theirs the low...maker of millionaires and the bankrupt. The right properties MANAGED CORRECTLY will be cash cows. The wrong will rob you blind between repairs/garbage tenants/ city nonsense. Not for the faint of heart ti manage themselves. i recently helped a client purchase a JEWEL, that he will be out of for under 35k and will have aection 8 tenants beating him up to hand him their 3 bed vouchers. (1400 a month)....do the math. The low comprises 60-70percent of the city if i had to guess and its all i ever buy