Baltimore vs Philadelphia

8 Replies

Which area is better for fix/flip deals? It seems to me Philadelphia has become saturated in recent years and good deals are getting harder and harder to come by.  Baltimore seems to be more ripe with potential at this time.  Am I right or am I missing something? Thanks

@Jonathan Rigg

       I'm a newer investor in Baltimore and I can't really speak for Philadelphia. What I can speak for is my short experience with analyzing and purchasing buy and hold properties in Baltimore. I have a lot of friends who swear that Baltimore is easily one of the cash flow capitals of the United States when it comes to flipping, then renting, then refinancing. One thing I will say is that you really really really have to be careful where you're finding properties in Baltimore. I've been here for three years and there are some neighborhoods that contractors don't even want to go into. I've worked for the City for 3 years now and I have a list of neighborhoods I consider "Dead Zones" (no pun intended). These zones are plagued with drugs and violence but may not appear so when you search for deals. Its nearly impossible to sell expensive houses in these neighborhoods and sometimes hard to find tenants that will stay longer than a year. I think you would really have to partner with someone from the City to avoid making a costly mistake. This isn't to say that you can't make money in those places. It's just that the risk is not even close to being worth the reward when you're not 100% sure what you're doing (just my opinion obviously).

There are a ton of great deals in Baltimore, you just have to look at more than just numbers when analyzing the deals. Good luck.

-Eric  

@Jonathan Rigg Baltimore is just as saturated as philadephia, don't kid yourself.  There may be more homes available, but that doesn't mean they are good deals.  Anything that's a good deal gets snatched up.  Once people start coming from Philly to do deals, we locals know they will go back to philly within a year cause they lost all there money.  If you don't live and breath Baltimore, your gonna become the sucker who's house I buy at half off.  Good luck

@Eric G. and @Ian Barnes are correct.  The upside is that you typically have options.  So, if a property isn't in a "seller/buyer market", rentals are always in high-demand in the city.  Take a couple of weekends to visit properties and neighborhoods.  Map out the areas you think are worth investing in and then go home and check the stats on those areas to be sure.

I grew up in Baltimore , wife works in Baltimore , the houses are cheaper in Baltimore . The returns can be better in Baltimore . I have all my investments in........................................Anne Arundel county .   Why ?    Better schools , lower taxes , lower crime , much better chance of appreciation. higher prices so you have to search high and low , but they are there . 

@Eric G. Hi Eric. Do you mind sharing your list of the dead zones? We are thinking about investing there and would love to hear investor and local’s thoughts like yours! Thanks a million in advance!