I'm a flipper, landlord, and run a construction company in Baltimore City, MD, by no means are people just plucking mls deals everyday and making a fortune. Most of the 70K+ houses you are talking about have serious structural issues, mechanicals have to be fully redone, and permits take time and money. Most of the time if someone is buying something for 70K it needs 80K+ work done to it, then you have to include closing costs 11%-12% in Baltimore City do to high tranfer taxes, and a 3% subsidy(seller help, its almost guaranteed in Baltimore), and 5% commission, then you have lending costs, property taxes, etc. Then you have to deal with the work from most GCs which is crap, unless you pay up for a good GC, which never happens as investors always go for the cheapest. I get calls almost everyday from out of state investors who are stuck cause GCs ripped them off. Everyone I know, looks at out of staters as the suckers that buy everything no one else wants. If you don't have a great, honest team on the ground you are screwed.
Thank you Ned! In investing in Baltimore, I would love to jump in on the blocks that are turning around, but I'm not as versed or confident in determining which ones those might be, if that makes sense.
Hi Melanie,
I think you need an okay realtor who knows a little about investing, and more about the city, so you can also learn from them about the streets, blocks, price info etc...
Obviously, driving around is helpful and it will teach you a lot about the blocks, seems like you are at the beginning stage, and a realtor will be helpful to you.
Thank you Ned! In investing in Baltimore, I would love to jump in on the blocks that are turning around, but I'm not as versed or confident in determining which ones those might be, if that makes sense.
Hi Melanie,
I think you need an okay realtor who knows a little about investing, and more about the city, so you can also learn from them about the streets, blocks, price info etc...
Obviously, driving around is helpful and it will teach you a lot about the blocks, seems like you are at the beginning stage, and a realtor will be helpful to you.
Good Luck!!!
Thank you Ozzy! I'm currently working with a realtor and have been primarily focusing my attention on multi-family investments in Cumberland, MD. I know it does not receive the popular vote as it's population has been declining for several years.
@Melanie Hartmann I love the MD Scenic RR that is in Cumberland, but I wouldn't want to invest there. Cumberland is a Railroad town. The changes in the Railroad industry mean fewer jobs in Cumberland. Other than prisons, I don't see new jobs coming to replace the lost RR jobs.
Jobs drive population growth, Population growth drives demand for housing, demand drive property values and rents. Baltimore has declining population too. However Baltimore rate of decline has slowed dramatically. The difference is new jobs in biotech and other fields have the potential to turn Baltimore around.