Maryland - Laurel, Columbia and owings mills

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Maryland - Laurel, Columbia and owings mills

Ayaan Aha
Springfield, NJ · Member since 2015 · 14 posts · 0 votes

So am thinking to invest in a rent generating property, My investment would be in range of 80-130K a condo or townhouse. I am investing in MD because its not too far from me and I may move there someday. I realized that properties in Gaithersburg area have a very high HOA fees that is one of the reason I am considering Columbia Laurel and Owing mills. I would start investing in properties around Baltimore but not yet since I want to build a concrete base and then jump into the rehab properties.

Please let me know if you think its wise to invest in these areas Laurel, Columbia, and Owing mills and if there are any areas that i need to be careful with. Also please recommend any great realtors in those areas and mortgage lenders.

Thank you for all your support in advance.

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Stephen Chittenden
Rental Property Investor · Gambrills, MD · Member since 2014 · 372 posts · 88 votes
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What do you mean by be careful? If your a cash investor, Arbory Ct/Ln in Laurel has some nice cash flow opportunities because of the inability to finance. If you're looking to finance the purchases, I find that Laurel and Columbia cash flows are often hampered by condo fees that can eat up a lot of your profits, and single-family homes can be difficult to make cash flow without a large down payment due to relatively high prices compared to rents. It can be done, you just need to be selective. We're more active in Harford and Cecil county. I don't know much about Owings Mills.
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  • Stephen Chittenden
    Rental Property Investor · Gambrills, MD · Member since 2014 · 372 posts · 88 votes
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    What do you mean by be careful? If your a cash investor, Arbory Ct/Ln in Laurel has some nice cash flow opportunities because of the inability to finance. If you're looking to finance the purchases, I find that Laurel and Columbia cash flows are often hampered by condo fees that can eat up a lot of your profits, and single-family homes can be difficult to make cash flow without a large down payment due to relatively high prices compared to rents. It can be done, you just need to be selective. We're more active in Harford and Cecil county. I don't know much about Owings Mills.
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  • Sandra Holt
    Real Estate Investor · Columbia, MD · Member since 2014 · 172 posts · 94 votes
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    It depends on what you are looking for as to which area to invest in.  Appreciation is best in Columbia but it's a really expensive market.  Renters are easier to find and manage in Columbia.  Investing in Laurel or Elkridge is a bit riskier because you won't get as much appreciation and the renters won't be as high quality but the units are at a lower price point.  Like, @Stephen Chittenden, I don't know anything about Owings Mills.  Hope that helps.

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  • Harold Looney
    Investor · Brooklyn, NY · Member since 2015 · 17 posts · 2 votes
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    I am also interested in purchasing multi-family rental properties in the Anne Arundel County section of Laurel, MD. I am building a network of Christ-Centered Philanthropists and Real Estate Investors who lease apartments to social services agencies that provide supportive/independent housing to individuals/families overcoming mental health issues. I am struggling to find suitable multi-family deals in in the Anne Arundel County section of Laurel, MD to meet some immediate needs.

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  • Harold Looney
    Investor · Brooklyn, NY · Member since 2015 · 17 posts · 2 votes
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    Originally posted by @Stephen Chittenden:

    If your a cash investor, Arbory Ct/Ln in Laurel has some nice cash flow opportunities because of the inability to finance. 

     Thanks Stephen for your post. Please elaborate on the opportunities for cash investors on Arbory Ct/Ln in Laurel.

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  • Stephen Chittenden
    Rental Property Investor · Gambrills, MD · Member since 2014 · 372 posts · 88 votes
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    @Harold Looney I have seen MLS listings in that area that are significantly below nearby property values. My understanding is that there are too many renters in the HOA to get financing in many cases. Given what I know about rents in the area, it seems there should be some cash flow opportunities in that area. I haven't done extensive diligence though, so HOA dues or or maintenance needs may erode potential cash flows.

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  • Harold Looney
    Investor · Brooklyn, NY · Member since 2015 · 17 posts · 2 votes
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    @Stephen Chittenden

    Have you seen any good rental opportunities in the Maryland City/Russett area? My potential tenants have children they desire to keep in the Anne Arundel School District.

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  • Stephen Chittenden
    Rental Property Investor · Gambrills, MD · Member since 2014 · 372 posts · 88 votes
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    @Harold Looney

     I haven't really looked.  We primarily invest in Harford/Cecil County.  We just live near Arbory Ct.

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  • Russell BrazilBusiness Member
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    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
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    @Harold Looney Im sure you discovered that multifamily housing in the area you are looking is essentially non-existant. Maryland/DC in general has virtually no 2-4 unit properties.  Baltimore has  some, Takoma Park MD has some....and then there are just a few scattered here and there.

    @Stephen Chittenden Arbory Ct/Ln is almost entirely investors.  I have considered those properties in the past, but there is actually zero appreciation potential with them. They keep going down in value which poses a risk to your principal

    As @Sandra Holt mentioned, Columbia offers the best potential of the cities mentioned for appreciation, but cash flow will be hard. There are a few cheaper condo complexes you can cash flow in, but you wont get anywhere near the return that you will get in Laurel..

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  • Nicole A.Pro Member
    Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
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    I agree that Columbia will be difficult to get anything that cash flows. You'll get your hopes up to see a "cheap" condo, but those condo fees kill any cash flow.

    Baltimore City and County have plenty of multi-unit buildings. I have to disagree with Russell that there are "virtually no" 2-4 unit properties in Maryland/Baltimore.

    You will have generally a different type of tenant pool if you're getting properties for around $100k in B'more vs expensive properties in B'more... but if you're looking to cash flow from day 1, you gotta consider all that.

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  • Stephen Chittenden
    Rental Property Investor · Gambrills, MD · Member since 2014 · 372 posts · 88 votes
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    Russell Brazil I completely agree. Arbory is only appropriate for someone who is focused on long-term cash flow. There is very little hope for appreciation.
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  • Account Closed
    Lender · Faulkner, MD · Member since 2015 · 118 posts · 28 votes
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    just because there is a significant investor concentration, doesn't mean there is no financing for those properties; it's just more expensive and requires about 30% down. 

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