@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?
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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.
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