@Kyle Davis - following this. But I am not sure I know of any investors who invest in the city limits for appreciation.
@Kyle Davis what neighborhood to invest is one of the toughest questions I see about Baltimore. (For buy and hold - not as much for rehabbing) Because like you ask it depends on the persons risk tolerance and goals; cash flow or appreciation.
Up to now I have basically bought for cash flow and because the deal was too good to pass up. Now my focus is in better areas in the $120-$150 range where appreciation is possible but will still cash flow. Where are those neighborhoods? Basically I invest in any neighborhood that fits in that price range.
I suggest you check out Belair Edison. It is a solid rental area with some homeowners. It may not be the right neighborhood for you but it is a great neighborhood to compare to. If you say I want to buy in areas like Belair Edison everyone will know what you mean. If you say I want to be in an area a level better than Belair Edison they will understand that too.
For the record i own two rentals in Belair Edison. Now I prefer a level higher. I have friends that do very well is cheaper neighborhoods.
If you go by @Ned Carey 's advice, here's a screen shot of sales in that price range in the last 180 days. Next step would be to research rents in those areas. Sometimes, you can find multis, too. Goodluck!
@Ned Carey Hi! I'm interested of buying a turnkey townhouse in Belair Edison 3400 Block of Teresa Ct. from an affiliated marketer. What do you think of this area? And is this a good buy?
Hey, I have a property off the alemdea in the 21218 zip code which is the east side. I also have a property on the west side that I am currently rehabbing in 21216 not that far from mondawmin mall in an area that is like bel air Edison. I invest for cash flow now that I am on both sides of the city I guess I'll get more of an Idea on how areas vary within the city. I will say my rents and cash flow are projected to be better on my west Baltimore property we will see once the rehab is actually completed.
Originally posted by @Kyle Davis :
Curious to hear from any Baltimore investors, what parts of town your investing in for long term rental property. Are you investing for cash flow or appreciation?
I think it really depends on what you're trying to spend, what market you're exploring (section 8 vs non-section 8), etc.... I target the east side of town for a multitude of reasons that I would be willing to share with you if you want to send me a PM. I also love Washington Hill (just west of upper fells point) because theres a ton of rehab being done to that neighborhood and I do believe the city will eventually tear down the housing project a few blocks south which is the hub of a lot of neighborhood crime. Its close proximity to Hopkins still makes it an attractive place to live. I have friends who only buy shells, put 40K into them, and rent them as section 8 properties on the eastside, they make a killing. I have friends who only buy SFHs in the Northeast region and rent non-section 8, they also make a killing. I think you have to evaluate your skills, what you're willing to deal with... etc. I know that in the grand scheme of things it doesn't seem like that would determine what neighborhood to target, but I believe it does.
Depends on price. You are fortunate you have this forum. It allows you to avoid huge mistakes.
@Vina Real it would depend on condition and price. That area is nice than the other side of Belair rd.
They're selling it for $115k for a 3/2 townhouse. It will be tenant occupied and will be lead certified when they turn it over to us. What do you all think?
Thank you all for the info, much appreciated. I'm just starting out, so I'm looking for near rent ready properties in the $50-$120k range. I'm open to Sec8, I have a 2 unit currently that one of the tenants is Sec8. I'm in it for the cashflow, appreciation isn't a huge driver for me at the moment.
@Ned Carey Thanks for the info, I'm actually looking at one property in that area. I'm a bit hesitant due to the location, however, your thread has given some added assurance.
@Eric G. Thank you for the elaboration and info. When you say east side of town, which areas are specifically referring too? I'm born and raised Baltimore, I feel that I know the areas pretty well. However, being new to RE investing, I'm working to get a better insight on the best/worst rental areas in this market. I try to purchase near rent ready properties in the $50-$120k range and shoot for as close to the 2% rule as possible when it comes to monthly rents.
@Kyle Davis Sorry for butting in your post.
@Kyle Davis Patterson Park/Highlands and Remington/Charles Village are areas with a lot of activity right now. In addition, there are some other areas to look at such as Dundalk.
JHU is a major driver in Baltimore city, so the closer a rental can be to any of the hospitals the better.
Hope this helps. Goodluck. Thanks! - Ola
@Vina Real No worries, best of luck on this potential deal.
@Ola Dantis How much of a buffer around Patterson Park have you seen/heard being sufficient? I know just south and west, your in Canton, a great area. How much north or east have you heard of going from Patterson Park and still being in a somewhat stable rental area? Thanks for the info on the other parts of town, much appreciated.
@Kyle Davis Morning Kyle, I'd say you want to stay South of E. Fayette for now; however, it is only a matter of time that activity will start to move upward.
I like Belair Edison and Walther as well I have a total of 6 properties and I feel that the 2 properties I have there are my best. Rents are strong. I have a newly renovated 3/2 that's rented for 1400 and I just finished one on parkside drive that I might keep that I know would rent for 1200-1400. Baltimore is really block by block but as far as bang for your buck while still getting a quality tenant goes Belair Edison is great. I also like waverly and cedoina as well.
Check out Dundalk too - you can get a near-rent ready townhouse in the low $100ks in some neighborhoods and the revitalization of Sparrows Point is going to bring hundreds of jobs to the area.
Parkside is also a good alternative to Belair Edison - its just on the other side of Herring Run Park.