Real estate in Baltimore?

Question

For beginners are there areas in Baltimore worth investing in real estate for rentals?

Sam Lewis · Answer

I am a big believer in living in a property before going through with a non-owner occupied investment.

I purchased a single family home (4 beds, 2.5 baths, with a finished basement) in Towson, MD. I live here, and rent room by room and cover the mortgage and more.

Think of real estate as a deep pond with a ton of lily pads to jump on. Aim for a lily pad where you can safely land (and not sink). If your first jump is smooth, you'll be more willing to jump to the next, more advanced lily pad.

My first home was my baby step lily pad! Now I am a BRRRR investor on town homes in Baltimore County :)

That being said, where can you see yourself living and having roommates? I recommend a location that is within 1 mile of a public university, 1 mile of a private university, 1 mile of a hospital, and 1 mile of a major company headquarters. If you can get 2 out of those 4 you shouldn't have an issue of finding roommates who you wouldn't mind living with.

@Kelly M. can you speak to your experience with investments in the City?

Alan C. · Answer

If you can do it, the room rental idea isn't bad. I couldn't do it and started out with a 3-unit so I could live in one and rent out the other two. After getting involved with another business for several years, I got back to investing. First, it was part time and then went full time in 2003.

I still live in the 3-unit and my good tenants pay my mortgage each month with a little cash flow left over so that I don't pay to live in my unit.

Currently, I'm a full-time wholesaler who has done about every type of residential transaction that you can think of including rehabbing/flipping, renting and owner financing. As I've said in other posts, I'm co-founder and president of MAREIA (Mid-Atlantic Real Estate Investors Association), a local investor association where you can get all types of real estate education and make connections to other area investors.

Don't hesitate to contact me about Baltimore area real estate.

Alex Kukich · Answer

I'd have to agree with Sam, house hacking is great, but also starting out with a rental that you'd live in is ideal. If something goes wrong you are at least comfortable with the asset you've tried to rent out.

Kyle Graham · Answer

@Sam Lewis thank you for this!!

Tim Jacob · Answer

I think its good with the right plan.  The first thing is ask yourself what sort of tenant do I want to attract.  Certain asset classes will attract certain qualities of tenants.  Your expenses and this cash flow will adjust accordingly.  There are a lot of ways the investor can lose money in Baltimore that are magnified now.  Especially with the pandemic.  I have a feeling there are many investors on here that have invested in D grade areas that are getting slammed right now.  In Maryland rent court is suspended until october thus people can just freeload away and not pay since the landlord cant evict them.  Even in more landlord friendly states you will still deal with nightmares in D grade.  My recommendation get with an investors agent that knows the areas and can give broad estimates about what sort of cash flow you can expect based on property management experience in a variety of assets.  If you need help let me know.

Kelly M. · Answer

I totally agree with the house hack idea. It’s a great way to get started. Definitely find a good agent, I went through 3 before I found a great one. In Baltimore I would recommend to start in areas near colleges. There will be minimal vacancy and are usually in safer neighborhoods. It’s also a good idea to check out websites like niche or live Baltimore.

Ozzy Sirimsi · Answer

@Kyle Graham

You should provide more information about you.

Otherwise, we can just guess and say  yes Baltimore is a good place to invest in rentals.

How good is depends on what you want to do, who you know, what much risk tolerance you have etc etc...

There many variables. One thing that is good for one person might not be good for another.

Kyle Graham · Answer

@Alan C I appreciate this, thank you so much. I’ll definitely be in touch in the coming months.

Sam Lewis · Answer

Yes I second Kelly - who is crushing multifamily in the city.

I would push near a University for sure (one Public / one Private). In Towson I chose my property based on Towson University and Goucher College.

Mark Cruse · Answer

This is a very vague question.

Real estate in Baltimore?

Most Popular Reply