Should I sell my Property in Baltimore City

6 Replies

I have a small 600sqft 1 bed/1bath, 2 story row house with a roof top deck in Federal Hill (21230) area of Baltimore City. I'm really struggling if I should keep it or sell it. I bought it as a personal residence in 2005 then had to rent it when I could not sell it in 2009.  Due to a huge influx of rental units in Baltimore city that I'm now competing with, probably about 2,000 new apartment in my zip code since 2008,  I see no rent appreciation in the future.

Purchase Price 2005 $189,000

Currently Owe $122,000

Comps $160,000

Mortgage + Tax - $935 per month

Rent $1,300

It has just become a hassle to rent and keep tenants happy. I was thinking of getting a property manager, but does it make sense to keep a house for only $200 cashflow a month? I could take the $20K and invest in a REIT like PEI (div 8%) and get $133. A link as it always helps to see the house.

Small Row House 1605

Any Thoughts are appreciated.

@Andrew Shaffer Are you finding rents stagnant or decreasing due to the new apartments?  They complain about everything renovation on going next door, they got a splinter in their foot on the wood deck, complained about a brick wall I pointed up the whole wall they complain about the dust, they saw a bug (1) but I can only spray outside no chemicals allowed inside, drywall is not sealed to the brick, it goes on and on.

@Account Closed What is an Alligator?

Wow!  Hopefully their lease is up soon.  Time to find some new tenants that understand city living!  I'm not too worried about the apartments in the area.  Not everyone likes apartment living - plus they are way more expensive.  It is also a much longer walk to cross street!  Fed Hill is all about the Row homes and I think a lot of the renters feel the same way.  The market in the area has been stagnant as far as for "sale prices", but it seems to be holding strong.  I just raised my rents 2% this year and nobody complained.  Hang in there - I think you just need to find some better tenants.

There is no cash-flow there. You are just not calculating. 

Sell it, and go buy something that actually creates a cash flow if that is your goal.