Multi-family investment neighborhoods in Baltimore
Member since 2018 · 5 posts · 2 votes
Hi! I'm brand new to the Bigger Pockets forums and to real estate investing. My first goal is to purchase a multi-family between 2-4 units, live in one and rent the rest - ideally off-setting most or all of my mortgage costs. Willing to do some renovations and don't want to have to do a complete overhaul the first time.
Some of the neighborhoods I'm considering are: Lauraville, Hamilton, Beverly Hills, Chinquapin Park, Parkville or Overlea.
Reaching out to see if anyone familiar with the Baltimore area has recommendations of other neighborhoods I should consider?
I look forward to connecting with you!
See the agents BiggerPockets members work with in Baltimore, MD.
See agents@Gina Casbarro
I think Multi- Units properties have been over priced since 2016.
Not many around and too many investors looking for them which makes it more expensive.
If you can find o e that you can add value, that would be great.
Be careful with the numbers, your goal is to get a deal not a multi unit.
As far as Halcyon goes, it is expensive for 195k because of the its layout, condition and location.
You would be paying 1300-1400 for the payment, not that bad but It will not be an easy sell with that lay out, might get vacancies between tenants.
It might cash flow a little when everything goes your way but it is an old house, there will be problems and does not worth to deal with an old house for a little
cash flow.
Hey Gina,
Multifamily availabilities are fairly sporadic across Baltimore City, however there are more listings on the northside rather than southside, such as Belair-Edison, Charles Village, and Sandtown Winchester.
I've seen quite a few pop up in Baltimore County near BWI, such as Halethorpe or Arbutus, as well as Brooklyn Park and Glen Burnie. I have seen some pop up in Parkville like you mentioned.
I personally have seen numbers work out quite well near Halethorpe/Arbutus, and I typically invest in the county moreso than the city. It all boils down to the neighborhood, rentability / curb appeal, and whether the home is already rented out or not.
What's tricky about multifamily is they are typically already owned by investors who have the units rented out, so if you want to fix and flip, or fix and rent, it can be tricky to get your money in and out quickly.
Let me know if you have any questions!
Most of those are good neighborhoods. I'd be careful with Reservoir Hill. I'd include Charles Village, Cedarcroft, Old Goucher, and Hampden. I renovated mine in Old Goucher and it cash flows a ton. I did sink a lot into it to get it there. I have done full value adds on a couple old multi families in Baltimore. That includes going from boiler to central hvac and metering water. Its a lot of work and if you front load capex it gets really expensive. A lot of the buildings will need a lot and the alternative is paying a lot of the utilities yourself which can be costly. If you need help analyzing deals and someone that has project managed a few of these and knows the costs I can help. I'm an agent as well.
Thanks Tim & Sam!
I keep going back and forth as far as what will be the better investment in the long term - a single family home that I house hack 1 room out of, or a multi-family where I can rent a whole unit.
I'm also concerned at the moment with covid and the ability to find roommates and also be comfortable living with people I don't know.
Even though this is a very new process for me and many things are daunting at the moment, I really don't want to just choose a SFH because it feels easier and then it ends up being a lesser financial opportunity in the end.
One property I'm thinking about checking out is 2503 Halcyon Ave, which is listed at $194,900 for a duplex. Seems as though it needs a lot of work for the price point it's at and it's been on the market for 185 - which makes me think - why hasn't anyone else bought this yet??
If you have any insights to share or things to think about I'd love to hear it!
Thanks again
- Gina
@Gina Casbarro
I think Multi- Units properties have been over priced since 2016.
Not many around and too many investors looking for them which makes it more expensive.
If you can find o e that you can add value, that would be great.
Be careful with the numbers, your goal is to get a deal not a multi unit.
As far as Halcyon goes, it is expensive for 195k because of the its layout, condition and location.
You would be paying 1300-1400 for the payment, not that bad but It will not be an easy sell with that lay out, might get vacancies between tenants.
It might cash flow a little when everything goes your way but it is an old house, there will be problems and does not worth to deal with an old house for a little
cash flow.
As was said above, most multi-family and real estate in general is now overpriced in my opinion.
My thought is that if you can wait at least 6 months or more, evictions and foreclosures are going to have a lot of owners selling and there will be lots of opportunities for taking over payments (subject to), owner financing and short sales.
Thank you everyone! Yes, that was what I was finding - hadn't found anything where the price made sense and thought the market might drop off in 6 months or so.
Tim - was thinking the same thing as far as choosing a neighborhood that would have more rent appeal / close to more amenities etc so switching up my search a bit.
Still going to keep looking and going to see if I can stay in my temporary residence long enough to wait out the market a bit.
Again really appreciate all of your insight!!!