NE District of Columbia and Prince George's County

16 Replies

Hi BP,

So after a few weeks of researching, I've settled on farming in NE DC and PG County Maryland to fix/flip. Is anyone currently investing in that area and, if so, what are your thoughts on the outlook for those areas?

I do have a concern with the distance I live from that area. I live in Woodbridge, VA (about 30 minutes if I use the Express Lanes) and I've listed to J. Scott and others on Podcast that champion staying within an area no more than 10 to 15 minutes drive time from your home. The market in NE DC and PG County seems very promising, however, and I think it could be worth it.

I live in Laurel and my partners are in DC.  The NE DC/PG County market is too costly for us.  We're operating in Northern Maryland where we have found very favorable numbers.  There was a recent Wash Post article about PG County and why property prices here are not increasing as fast as in other areas.  NE DC is real hit or miss, I think.  Some areas have great short-term potential, if you can find a good deal.  Some areas would have to be longer-term plays.

@Stephen Chittenden   I'm a buy/hold guy from Odenton.  Would you say northern Maryland is good for what I do?  If so, what areas would you recommend?  Harford county or more north?  Thanks...

Originally posted by @Scott P. :

@Stephen Chittenden  I'm a buy/hold guy from Odenton.  Would you say northern Maryland is good for what I do?  If so, what areas would you recommend?  Harford county or more north?  Thanks...

 We're doing buy and hold in Harford and Cecil County. Harford has a good mix of lower priced, mid-priced, and high-priced properties. It's a real mix. It's a little far, so we have a property manager and contractor (related entities) who we use for day-to-day. We make it up there every four-to-six weeks. You can find homes in the area with the opportunity to create enough equity to finance most of the cash you used to buy/rehab back out. 

is Bowie an area for wholesale flips ? Prices are better than mc

Thanks Stephen

I agree with stephen, NE DC and PG county have some great potential for flips, but you aren't the first one to have thought of this and exploited the opportunities.

83% Profit: P.G. County Ranks As Most Profitable For Flippers

Between 2010-2014, I found some great opportunities for flips and lower competition in PG county on MLS. I think now, retail prices are growing in these neighborhoods and banks are able to demand more for their REO/ short sales and not giving them away for a song. They often demand close to retail and leave margins too thin for comfort if there are any to begin with. This leaves you exploiting direct mail and off-market leads to generate leads that might allow you to find the discounted properties in these neighborhoods. I've already seen the yellow letter/ post-card pieces being sent to my rental properties in NE DC so its a highly targeted area even for investors like you looking for high equity properties.

You'll have to develop a system for long distance and determine if you want to do the long distance rehab if you have trusted guys and follow the advice from J scott's articles on how he is able to do it successfully. dont expect to make it here quickly in rush hour..

Finally, keep in mind that PG county might not currently be most profitable for 2015, but rather 2013/2014 like the article highlights from past numbers. these numbers might be much lower now that prices have risen.

thanks all for thE feedback. I'm going to head up north today to drive through some neighborhoods in NE and PG. I still seeing what seems to be good deals right off the MLS. They us ally aren't lasting more than 2 days.

I worked Maryland for 10 years. While we had the best success in Baltimore City and Baltimore County, we found great deals in PG, Anne Arundel and Howard Counties.  If you want deals - begin to poke around the auction websites.  

www.alexcooper.com

www.ajbillig.com

www.hwestauctions.com

www.tidewaterauctions.com

Great way to find discounted properties.  If you have any questions at all about investing in foreclosures or the process of buying at foreclosure in Maryland - email me anytime.  [email protected]

The Maryland market was very good to me.

I do deals in PG, MoCo, DC, NOVA...

PG great, but very competitive for any listed properties as was previously mentioned.  I've been buying in PG since 2011 and (no surprise) every 6 months it's more competitive than it was the 6 months prior.

At this point almost impossible to buy bank owned listed property cheap enough to make money.  Still can occasionally get deal on listed short sale but, here again, banks being much more aggressive and not dropping their prices enough to make the deals work in majority of cases.

I'm continuing to ramp up direct mail, continuing to reach out to wholesalers, and looking into buying at auction.  

Originally posted by @Jonathan C. :

I do deals in PG, MoCo, DC, NOVA...

At this point almost impossible to buy bank owned listed property cheap enough to make money.  Still can occasionally get deal on listed short sale but, here again, banks being much more aggressive and not dropping their prices enough to make the deals work in majority of cases.

@Jonathon C. is absolutely correct. Bank owned properties are no longer trading at the discount to make it worthwhile to purchase. 5 years ago the spread on the REO and standard sales was big enough, but these days the discount barely covers the extra transfer taxes and extra repairs typically needed.

Russell Brazil, Real Estate Agent in Maryland (#648402), Virginia (#0225219736), District of Columbia (#SP98375353), and Massachusetts (#9​0​5​2​3​4​6)
(301) 893-4635

Just reading this thread.  What are people's thoughts on Prince George's County at this point in time?

I've been trying to find buy and hold leads along the stops where the proposed Purple Line will come in.

Originally posted by @Andrew Ninnemann :

Just reading this thread.  What are people's thoughts on Prince George's County at this point in time?

I've been trying to find buy and hold leads along the stops where the proposed Purple Line will come in.

Ive had my eye on the hyattsville/riverdale/collegepark/brentwood area for over a year now (first time buyer looking to make some instant equity). These are the best deals in the area IMO, if you jump on the listing the first day it pops up you've got a chance. Ive seen properties Ive wanted come full circle and now back on the market renovated selling in 300s. For example 3931 Madison in Hyattsville was listed as an REO I believe at 180K but actually sold based on the records, If I remember correctly, 205K. Came back on the market for 330K (renovation is really nice, home was not THAT bad to start with). Still on market for 310K, check it out.

Originally posted by @Tyler C. :
Originally posted by @Andrew Ninnemann:

Just reading this thread.  What are people's thoughts on Prince George's County at this point in time?

I've been trying to find buy and hold leads along the stops where the proposed Purple Line will come in.

Ive had my eye on the hyattsville/riverdale/collegepark/brentwood area for over a year now (first time buyer looking to make some instant equity). These are the best deals in the area IMO, if you jump on the listing the first day it pops up you've got a chance. Ive seen properties Ive wanted come full circle and now back on the market renovated selling in 300s. For example 3931 Madison in Hyattsville was listed as an REO I believe at 180K but actually sold based on the records, If I remember correctly, 205K. Came back on the market for 330K (renovation is really nice, home was not THAT bad to start with). Still on market for 310K, check it out.

But here's the rub... 3931 Madison has been on market since october. You can't base your potential equity or profit potential since it hasn't sold yet... Even then, what if they put 80k into it and now they have 4 months of holding costs. Thats a negative profit potential... even with 60k invested in reno, I see less than 20k in profit potential depending on holding costs... I don't see this as a slam dunk deal for that investor. I'm also not seeing screaming flip opportunities in these neighborhoods. Those MLS opportunities dried up 2012-2014. Major investor competition for fixer uppers, especially those under market...

Originally posted by @Jeff Bridges :
Originally posted by @Tyler C.:
Originally posted by @Andrew Ninnemann:

Just reading this thread.  What are people's thoughts on Prince George's County at this point in time?

I've been trying to find buy and hold leads along the stops where the proposed Purple Line will come in.

Ive had my eye on the hyattsville/riverdale/collegepark/brentwood area for over a year now (first time buyer looking to make some instant equity). These are the best deals in the area IMO, if you jump on the listing the first day it pops up you've got a chance. Ive seen properties Ive wanted come full circle and now back on the market renovated selling in 300s. For example 3931 Madison in Hyattsville was listed as an REO I believe at 180K but actually sold based on the records, If I remember correctly, 205K. Came back on the market for 330K (renovation is really nice, home was not THAT bad to start with). Still on market for 310K, check it out.

But here's the rub... 3931 Madison has been on market since october. You can't base your potential equity or profit potential since it hasn't sold yet... Even then, what if they put 80k into it and now they have 4 months of holding costs. Thats a negative profit potential... even with 60k invested in reno, I see less than 20k in profit potential depending on holding costs... I don't see this as a slam dunk deal for that investor. I'm also not seeing screaming flip opportunities in these neighborhoods. Those MLS opportunities dried up 2012-2014. Major investor competition for fixer uppers, especially those under market...

 Alright I guess the the "best deal" is subjective. I suppose they don't have the highest profit margin for a flip. Looks like the deal for 305k fell through but it was going for that price and I highly doubt 80k went into it. Id say 40-50k max. As for me, Im looking for my first house. Put 40k into it and either sell in a few years or keep to rent when i'm done with it. Rent potential is decent given proximity to DC, UMD, and Goddard. Not to mention its directly next to U Park (stable community) and the new Whole Foods shopping center and potential Purple Line. To sum it up that area is affordable, close to DC, has a good quality of life, decent tenant potential, and a good chance the homes will increase in value over the years. As for the best flip margins... idk go look in capitol or district heights 

Just seeing this thread as well.  I am new to this Real Estate world and looking to gain some information who could help me in the right direction to start off with a fix/flip to get some equity to purchase a buy and hold.  Also I live in the PG county area. 

Any advice would be welcomed! 

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