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
Cheap houses are available in Baltimore , whether or not they are good deals is in the eye of the beholder .
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.
@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.
@Eric G. I appreciate your response, it sounds like sound advice. I will PM you maybe we can partner on a deal sometime in the area.
@Ian Barnes I appreciate your warning I would definitely partner with a local or somebody who has a deep understanding of the area.
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!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing