Hello There! I am interested in knowing how your returns have been on investing in rental properties in Hagerstown MD. We have started looking into the area and have learnt there are properties under $40k and generating rent around $800. Has anyone had a similar experience and can share some information?
@Kanika Sharma On average, A half a duplex priced at $55,000 with 3beds 1 bath 1,200 sqft would rent for $850-$950 depending on condition. Obviously the returns are a no brainer. However, a lot of investors fail to analyze the holding cost. Most of these properties are near downtown and are over 100 years old, though in most cases they were updated at one point. This is why it is vital you do a home inspection during your due diligence period. You will be able to know what you are getting into and you can negotiate accordingly.
If you have questions about investing in Hagerstown, feel free to reach out.
I"m also interested in rental properties in Hagerstown. I have been looking at duplex between $100k and $140k. I was thinking of properties under $50k, but I generally like to own property where I can go to if needed. Not sure how bad the areas that are under $50k are. Also, wasn't sure how the renter pool is for Hagerstown? I see lots of places being renovated and flipped in Hagerstown. I'm looking for a long term rental.
@Kanika Sharma On average, A half a duplex priced at $55,000 with 3beds 1 bath 1,200 sqft would rent for $850-$950 depending on condition. Obviously the returns are a no brainer. However, a lot of investors fail to analyze the holding cost. Most of these properties are near downtown and are over 100 years old, though in most cases they were updated at one point. This is why it is vital you do a home inspection during your due diligence period. You will be able to know what you are getting into and you can negotiate accordingly.
If you have questions about investing in Hagerstown, feel free to reach out.
I live near Hagerstown, MD in Smithsburg, MD but have been investing in Franklin County, PA - Waynesboro, Greencastle, Chambersburg. Those areas have the same issues that @Cristhian Huamani mentioned with the older homes there. You can hit the 1% rule in both places but you will want a property manager to help you navigate the rental inspections.
I would encourage you to think carefully about those 40k homes as needing 20-30k+ in repairs to maintain that $800 rent. They are unlikely to be turnkey. In my experience, deferred maintenance is very common. Typically, I count on having to replace the roof and windows on every property. Additionally it is very common for electrical needing to be upgraded from knob and tube or plumbing being cast iron that is splitting or steel pipes that need replacement.
I completely agree with @Michael Cross. I am finishing a 4 unit rehab that cost around $90k and it did need almost everything Michael included above. The knob and tube being the major issue because you need to remove the walls. I am vary wary of the low cost homes. Partnering with an experienced investor in this area is your best bet I would say. This area has to many nuances you can only learn by doing a deal.Not being local may be difficult . You will need a team of contractors in this town for sure. Message me and i can give more info on the area and my experiences.
@Trey Williams Thank you for the information you provided about real estate in this area. I'm actually looking at a low cost property near Frostburg. The owner lived in it for many years and now wants to get rid of it. I am trying to locate a contractor to survey the property with me this Sunday.
I have a general contractor for a property I am considering purchasing in Hagerstown, and we (me, the contractor and the owner) are going through it tomorrow, Thursday, 28 May. But I don't know anyone who services the Frostburg area for my Sunday property viewing. You and @Cristhian Huamani make good points about being cautious and I want to take your advice. Would you mind emailing me?