Is this a good investment in Baltimore?

Question

I'm undecided about buying a property in Baltimore (21215). I can buy the property for $85K, and invest $70K to fix it and according to my estimates the ARV should be around $220K.

But I'm not familiar with this area and I'm worried that I'll keep the house for too long before being able to sell it.

Is anyone in this forum familiar with this area who can give me some advice?

Ned Carey · Answer

@Roberto Valencia an entire zip code in Baltimore is way to wide and area to evaluate.  That zip has some of the worst properties. It also has some very nice properties.. Generally north of Northern Parkway is pretty solid.

I see you are a broker. Look up how many sales there have been nearby. Look at how many are listed in the same area and figure how many day supply of houses are currently on the market.  This should give you a pretty good idea of the velocity of sales.

Roberto Valencia · Answer

Thanks Laticia. I took my general contractor to see the property and he found structural damages, which will make this investment too expensive. i'll keep looking for a better deal.

Laticia Braxton · Answer

Hi Roberto.  I totally agree with Ned.  That zip code has a heavy concentration of dilapidated homes, high crime, etc. but staying north of Northern Parkway is definitely your best bet.  Anything south of there will likely not get you a $200+k ARV.  I was doing BPO's in that zip code for awhile earlier this year and the highest ARV south of Northern Pkwy. was around $145k.

There are many other areas of the city that will get you the numbers you are seeking.

Roberto Valencia · Answer

Great advice. Thanks Ned.