Baltimore "Cheap" Houses

[Jeffrey Ward]

Has anyone in the Baltimore area looked into any of these really cheap but beat down houses? Does it pay off to fix and rent or BRRRR them? For instance,

https://www.redfin.com/MD/Baltimore/2732-Wilkens-Ave-21223/home/10978115

is an example. There's a lot of work to be done, but for the price, if you can fetch $900 rent for the thing, then it should cash flow pretty well. There's tons of these places. I suppose if it was worth it, they wouldn't still be on the market, but who maybe not?

[Tim Jacob]

Solomon brings up a good point.  The most affordable good contractors wont go there leaving cheap contractors or expensive ones like Roto rooter who will do a good job but charge a lot.  They wont care if the company vehicle window is busted so a local can steal a power drill to pawn on the street.  They have insurance.  Thus they charge more.  

I recommend high grading your properties to an absolute bare minimum 100k arv areas and to ensure expenses are reasonable 120k arv for single family.  At 120k arv tenant quality should be reasonable with proper due diligence.  5% vacancy is obtainable.    

I think a lot of people who want to cone to Baltimore should start by formulating a business plan and in buy and hold have a portion be dedicated to which demograpgic to target for tenants.  The tenants will make or break you.  You can do well in Baltimore with the right strategy.