Real Estate Consultant · Cincinnati, OH · Member since 2020 · 28 posts · 8 votes
Hey all, I'm looking at purchasing my first investment property and have been pre-approved for $225k. I live in the DC suburbs in Maryland and would ideally like to find a property within this region, Baltimore or even Richmond, VA. However, I am open to other markets within driving distance. I'm seeking advice from others on whether you think Baltimore is a good market for a buy and hold, or other areas that might be good for a buy and hold. I haven't ruled out a fixer upper, but at my price point it's hard to find properties in the DC area so that is why I shifted focus to Baltimore or Richmond where properties can be had for under $200k and fixed up. I have also considered townhouses in my current area near Rockville and Gaithersburg, but I have read where most people don't like townhouses because of the HOA fees. I will not be living in the property. Any advice on where to look and what to be wary of when finding properties would be greatly appreciated.
You should look into the Harrisburg PA metro area; its a strong rental market (BRRRR in some areas and B&H in others) and for $200K you can expect to pick up 3-4 SFR rentals in a decent area that may require just a little cosmetic touch up if that. I like 3 bed (to max out rent) semi detached (tons of inventory) for that price and they will cash flow quite nicely.
Ive done two flips in takoma park. they have this insane tree protection plan even on interior renovations takes a month neighbor can protest, have to put tree fence around entire property and can't remove until c of o so landscaping gets pushed back a few weeks. Margins are deciant though.
Have you considered looking at a market with lower price entry (lowering your risk profile on the first property helps get over the initial hump)? Remote investing may help here. I used this strategy to quit my job.
I'll come to Baltimore's defense as well. Sure its got plenty of problems, and there are plenty of neighborhoods I would never invest in, but there are some great B-class neighborhoods with good deals and solid cashflow. Just be sure to properly vet your tennant and keep 6 months of reserves (but that is advice that I'd give ANY investor in ANY market).
I came here to say this also. Specifically the Kent Island or Easton areas. I can try and navigate through some of my resources to help find you a deal! There’s a high demand in this area right now as houses are flying off the market and driving up property value. Also a good rental market if you’re looking to buy and hold. I’m no expert by any means, I don’t even have my own first investment property yet but I’ve been monitoring the market here as I’m looking. My step mom is also a real estate agent and has been for 20 years so she likes to keep me in the loop.
@Joe Norman what neighborhoods in Baltimore are classified B-class?
Its very subjective and everyone's opinion varies. For me I'd say a neighbored where renovated row homes sells for $175-200k is what I'd call B-Class. I'd be looking for a mix of homeowners and renters, not a purely rental neighborhood.
Don't get too caught up on the A/B/C/D "class" and focus more on the economics of the real estate market in each particularly neighborhood.