Baltimore flips

18 Replies

I live in the dc, md, va, area which is a little expensive. The baltimore area is the cheapest market in the area that I know of. Is this a good investment market for flips or buy and hold.

Raymond,

I'm in DC as well and am in the same boat of considering cheaper areas. IMO Baltimore is too far to do a first flip, but may not be that way for you

PG County is a great area to invest in and recently ranked somewhere in the top 3 places to flip. I would consider looking at PG County for flips.

Thank you for the feed back. Any area in particular in pg county.

I'm not too familiar with it, but generally the really rough neighborhoods like capital heights I'd stay out of. I had a drive through there looking for houses and let's just say I won't be going back.

I also live in the DC area and had been in the same dilemma for a while, there are lots of cheap properties in Baltimore, but if there is not at least a few sold with good prices after repair you can end tied up with a rehab property for months.

So the trick seems to find an area with some rehabed properties sold for a good price recently, which sounds simple but is not

The other thing I have heard the laws in MD are more protective to the tenants than in Virginia, so you need to be careful renting.

anybody knows of a good area like we are talking?

I flip homes in the D.C. Area. You can make money in any market as long as you know your numbers. I do quite a few in PG County. You can go into Capitol Hieghts and other areas but you just have to price in a few more problems. I put in security systems and I install fake cameras. That mitigates the problems to an acceptable level. Don't put in real cameras because they'll destroy them and the police aren't really going to do anything with the footage anyway.

I haven't gone to Baltimore because it's just too far away for me to manage the project but otherwise I would. All you have to do is go identify a couple neighborhoods that look like good farming ground. You'll want to see a wide spread in home prices. You'll want to see ugly homes selling for signifantly less than fixed up homes. You must see fixed up homes. Unless you are a Jedi Master Flipper then you don't want to be the first in a neighborhood. But, at this stage in the market there are not many areas that haven't seen renovators.

Once you find a couple good candidates go get familiar with the properties. Get a realtor and go walk some of the current inventory. Make offers the old fashioned way. Drive the actual streets.

Once you've I.D'ed your target market and feel comfortable start buying. As you get a couple deals you'll start to learn the surrounding areas and you can widen your market. Metro areas can be extremely tough to value. Crossing a street may be the difference of a $100,000 in arfter repair sales value. Make sure you know your market.

I see a lot of people doing that in D.C. they send me deals on a row home and say it's worth $800,000 and they'll send me two comparables sales to support their value. I'll look and say yeah there are 2 homes that sold for $800k but there are 6 renovated homes that sold for $600k and 4 that sold for $700k. Know the neighborhood.

I just read a very good post called "Baltimore Neighborhoods" with lots of good information

Updated almost 4 years ago

@amandafelton wrote this "From living in Baltimore my whole life, I have learned it is a patchwork of the good, the bad, and ugly. For instance, some would believe it would be a wise investment choice to buy near Johns Hopkins. This may be true, but onl

Baltimore is cheap for a reason .  I grew up there thru the mid 70's . Why my parents left .... crime , violence , lousy public schools , high property taxes , higher car insurance , higher property insurance .  I am in Anne Arundel County , there are deals to be found , its just harded to find them . 

Baltimore is varied. Good and bad places within it, strangely close to one another. Good rental city...why? Everyone rents.

If you want to get started in Baltimore, I suggest going to local REIAs and Meetups  because you will learn and network from those there now who are working that market

Baltimore REIA - Towson area

MAREIA - Owings Mills

Real Deal Meetup - Arbutus

Baltimore Washington Investor Meetup - Columbia

Google search these for times and fees (the Meetups above are free).  

Baltimore has enough going on that is varied enough that many people can be successful.  But you have to know the areas. This is where these meetings come in handy because you'll learn ALOT just by listening to the experienced folk

A simple answer to your question is yes. 

More important that a good market is a good deal.  Good deals are everywhere. (just easier to fins in some areas)

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I have over 20 property's for sale in Baltimore the link below is to my list of propertys for sale. https://docs.google.com/document/d/19x-DtmlFEU5vs87Iz7p680DOjQ3xwNn9nZi2_jJExGI/edit?usp=sharing

I've actually started doing tenant placement in Baltimore and have come to learn that Baltimore is a HUGE rental place. Especially with Section 8 if that would interest you. A lot of my investors prefer section 8 because its pretty much guaranteed money and you're more than likely to get above market rent. They've also opened their waiting list again a few months ago and are scheduled to give out 10,000 more vouchers. Add that to those who already have a voucher, and you have $20,000+ people that are need of rental houses.

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@Raymond Odemns  I think you got a alot of great answers.  I am currently doing a rehab or fix and flip myself.  I do live in Baltimore.  I actually work in DC so my days are very long but just want you to know it can be done.  If you are not from the area I think your biggest strength is gonna be finding a good investor realtor.  I am from the area and when i am looking at a deal I am still having my realtor look at it and double check my numbers.  One of the other people posted about going to local meetups and networking, which is great advise bc as a couple people mentioned Baltimore has its pockets so you gotta make sure you talk with someone who knows.  I was actually just at a meeting the couple weeks ago and a veteran Baltimore flipper told the story about a flipper who was from DC bought a property literally a block over from another block and lost about 20K just bc they didn't know the difference that their block was a bad one but the one right next to it was good.  Hope I will see you around the meetings and If you need anything I am always happy to help any way I can!

I am a Baltimore based Hard Money Lender and I am constantly hearing about the next "Hot Area" in Baltimore.  Some investors say Cherry Hill or Brooklyn.  Other investors will tell you that North Ave and Reservoir Hill are the hot places to buy.  I hear conflicting stories from different investors every day and although I respect the enthusiasm of my potential clients, I am always brought back to the reality that is Charm City.  Besides the obvious neighborhoods, Canton, Fells Point, Fed Hill and Hampden, here are the neighborhoods I am most bullish on:

Dundalk/Essex:  Dundalk/Essex is my favorite area for buy and hold investors.  The prices are currently low and although the rents are not premium, the renter's are typically hard working and community oriented.  You can expect low turnover rates and tenants that care about their home.

Gwynn Oak/Forrest Park:  Located in West Baltimore, this is my favorite area for the Fix and Flip investor.  Large single-family homes can be purchased from 50-60k and with the right touches can sell for over $225k.  Just be ready for a full-gut rehab and reserve funds for landscaping.  This historic Jewish, then African American neighborhood is making a resurgence as of late, with many government officials, including the acting Mayor, residing in the neighborhood.  Although West Baltimore is notorious for it's violence and crime, this particular area has a more residential feel with homeowner's who want to keep their neighborhood safe.

I am also bullish on Remington and Charles Village for their proximity to Hopkins and MICA.  I like what I see from Bel Air-Edison because of their school system.  I am down on pigtown and reservoir hill.  Please reply if you agree or if you have any opposing thoughts on Baltimore.  Thanks

Yes baltimore is cheap, and here is money to be made.

The questions is how are you going to find them and buy them. Good deals are not staying on the market for long. 

As long as numbers work, you will make money.

As a Baltimore native and investor I know exactly what you are talking about. When I started 15 years ago I told my agent that I think Res. Hill is going to blow up. His response- "They were saying that 20 years ago and not much has happened." Well, 15 years later... and that is still pretty much true. Pigtown. Now that is some funny stuff. The name was changed 10 years ago because it is hard to sell a 250k house in a place called pigtown. So, they renamed it to Washington Village. After the crash- it went back to Pigtown! lol.  Pigtown will never turn into a Fed Hill or Canton without a night life- the legal kind that is! Yes, Dundalk is hot. Many of my friends are buying there. I think that the area from Dundalk to Greektown is a good bet if you can get in at the right price. Same with Belair-Edison out to Overlea. Yes. the NW part of the city that you mentioned is strong for flipping right now. I also have several friends that are rehabbing some of the large, and once beautiful homes out there and doing well. There are also many other areas of the city to invest in-  but it really depends on your goals. If you want good cash flow or something to brag about. They aren't usually the same thing. You can buy a house in Hampden for 180k and rent it for 1600 or you can buy 3 houses in Mill Hill and get 3300. The investor in Hampden will brag and the investor in Mill Hill will go on a nice vacation. (The first houses that I bought were in Hampden and the last ones that I bought were in Mill Hill)

As far as good deals go. They are all over the place. I could probably find one every day if I put the work into it. Get on every wholesalers list  All of them. Most of them aren't very experienced, but sometimes they will find a diamond in the rough. Have an agent set you up with an auto-search. Send out postcards of your own. Go to meetings and establish relationships. (on of the most effective ways) and- walk around the neighborhood that you want to invest in and talk to everyone. While you are doing that look for notices on doors, etc. I have found many many deals like that.

Mark

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