I am a new investor looking to purchase a rental property in Baltimore, MD in the $200k area with a partner. I live roughly 30 miles away and am very familiar with the city and areas, but could definitely use some input from people who have invested in the area before. I have been looking at mostly updated places that may need some cosmetic work up front, but not an entire rehab. Any advice on specific towns to look, previous experiences, thoughts, suggestions, etc. would be greatly appreciated.
Thanks in advance!
Hey @Jason Dallacqua are you thinking of the city or county?
So, are you looking to spend $200k on 1 property or a few properties? City or County? If you are looking to purchase just one property I would purchase in AA County and stay close to home. Plus, the courts are much more landlord friendly in AA County.. Just purchased one for less than that right around the corner from you in Arnold.
I do have properties in Baltimore City and County. Also have a few in AA County. We can much more helpful if we know what your objectives are.
@Jason Dallacqua welcome to BP. To follow up on what Dave Wandel said, your question is pretty general. I could spend two days writing advice and tips. But without knowing more about you, and your goals, and your experience it is tough to know what would be of value to you.
I'll still take a shot and give you a few ideas.
- $200 might be to much for a rental property in Baltimore. A property in that price range may not cash flow.
- There is an excellent meetup group in Glen Burnie. The Anne Arundle REI meetup (google it) Dave is a regular there.
- Read here on BP and build your knowledge base so that when the right deal comes along you will recognize it.
Thank you for the responses. I did keep the question very general as I am just looking for others experience or thoughts on the area and did not want to limit the type of feedback. @Ola Dantis I have been looking in the city (Fells, Highlandtown, Pigtown, near Hopkins). I have considered the county as there may be better long term tenants there, but have not done to much research into properties outside of the city.
@David Wandel Thanks for the input on staying in the county and about the courts being more landlord friendly. My goals are to start with one property (single family) and add to the portfolio with 1-2 new ones a year. I obviously want the property to be cash flow positive, but this would not be for current income and everything would be reinvested in future properties as it allows. To clarify, my plan is to use roughly $40k, which would allow for a property worth roughly $200k given a 20% down assumption. Rents are great in my area (Annapolis) but properties are tougher to come across that would work for me personally.
Jason, you should reach out to me. there are properties that will meet your criteria in Aa County. Start looking around Glen Burnie. I just purchased a townhouse in Arnold this week for 185k from a wholesaler. It needs maybe 10 grand to make it rent ready. I am actually going to rehab and resell.
I am speaking at a Baltimore Reia today at 11:30 on where and how to find properties. Come on out if you can make it. Meeting is in AA County
Ned had good points about 200k investments and still cash flowing. There's plenty of neighborhoods in the city that could cash flow better at lower purchase price points. It's up to you if you want to work in such neighborhoods.
Baltimore city in more desirable areas like Fells are very hard to make work on a cash flow basis, mainly because of property taxes. The city has historically used the nice areas as their piggy bank so when they need cash they start looking to raise tax assessments, etc. Most properties worth owning will have a tax assessment that will destroy your cash flow when coupled with a 200k purchase price.
Welcome to BP! You could definitely find a $200k property that will cashflow, but you might be better off looking at $120-150k ARV properties in some of the B/C class areas of Baltimore and surrounding suburbs (Dundalk/Essex/Middle River come to mind). Northern AA County is also a good bet, as Dave suggested.
There are plenty of ways and areas to maximize your $40k investment in Baltimore, just do your homework first. You're making the right first step by introducing yourself on here, and I also suggest you hit some local meet ups (avoid the ones that just pitch you on buying seminars and products) and connect with some other Baltimore investors and professionals. Good luck!
Welcome to Investment World and BP @Jason Dallacqua
I would definitely go with houses that needs cosmetic work. It gives you more idea about the work, you will meet with contractors whom you will need in the future, and you will not pay for somebody else"s work.
It is hard to give you ideas about where to invest cause everybody has a different strategy. You should decide on your strategy and decide what type of renters your would like to work with, what kind of exit strategy you want to have...
Once you answer those questions it is easier for to give you advice.
Good Luck though!!!
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