Good morning BP family. Need some direction and advice. Thinking about investing in buy and hold homes in the Maryland area. Does anyone know how the market is there? What areas should I look at ? Thanks in advance.

What part of Maryland. The markets are so different near DC and Baltimore or western MD out near me. With PA and VA and WV so close there are also good opportunities there. The big question is what price range, what type of house, what style of investor are you looking to be and then folks can help you with an area or sub-market.

Maryland is a pretty big place.

Market is the hottest it has ever been. 

I live in Baltimore County and looking in Columbia/Laurel/GlenBernie area. Frederick is really growing. Harford County is up and coming

@Steven Jefferson we would need to know what is the purchase price you are looking at and how much risk you are willing to take on.

Thanks for all the responses. I currently invest in the Harrisburg PA area. I would like to concentrate on b,c area's under 100k if possible. 

In general real estate is going to be cheaper in Harrisburg than it will be just about anywhere in Maryland (with the exception of some of the "War Zones" in Baltimore City). If you're looking to stay under $100k and not be in a blighted neighborhood then you'll have some difficulty in Maryland and may want to stick to PA.

Good luck!

Market is crazy and under 100K, you will end up in pretty bad area in Baltimore these days. everything is over priced.

Thanks for the advice guys. Really appreciate it

@Steven Jefferson - We invest in Cecil County, Maryland and we are looking to move toward Kent County as well.  We do BRRRRs and often get in for a total that is right around $100K ($105-130K with purchase and reno) for a property that appraises for $140-180K and rents for $1250-1650 per month.  We leave some cash in some of our properties and get more than we put into some of them on the refinance.

After 3 years we have 7 properties generating $3000 a month cash flow on an investment of $300K.  We have 15 year notes on each of the properties and the total portfolio is worth right around $1M of which we have $450K and growing in equity.  So we are getting about a 10% cash on cash return with another roughly 12% on equity pay down.

As you can see we haven't hit any home runs, but lots of base hits.  Plus, the homes we have purchased are in very stable neighborhoods in communities within minutes of the I-95 corridor and easily commutable to Baltimore/Wilmington/Philadelphia.  We are pretty happy with the market and our investments/returns.

Originally posted by @Steven Jefferson :

Thanks for all the responses. I currently invest in the Harrisburg PA area. I would like to concentrate on b,c area's under 100k if possible. 

Under $100k will put you into the highest risk properties and locations not just in Maryland, but in some of the highest risk on the country.

Median Home price across the whole state is about $350k. So that gets you an average property in an average location. If you're buying a property 80% below the average, its going to have a quality of location, risk, and tenant quality about 20% of average.

 

thanks Again 

Brian that is what I'm trying to accomplish. How do you get your properties. The mls or through wholesaler. I started investing in 2020. And bought the 2 Investments through the mls. I know you don't get the best deals from it but that's my only source for now

I invest in Franklin County PA right near the Maryland line and those numbers and doable there too. Like @Brandon Turner has said a bunch of times in podcasts, look for a radius of 2 hours and in nearly every part of the country you can find a market that works for you without going into a super rough area. Check out a number of markets and find one that feels right for you and move forward.

@Brian Tome

I also invest in Cecil County! I'd love to get together and "talk shop" sometime if you're up to it! I was born and raised here. Just got into the game, but my partner and I have been aggressively searching for our first deal. It's a tough market right now for sure.

@Steven Jefferson - We find properties through our own yellow letter campaigns.  I send a few hundred at a time until I find someone who wants to sell their property.  They are usually very rough and need major rehab.  We also picked up four from the children of an investor after he passed.  The estate administrator contacted my realtor wife about selling them, but opted to sell to us as a group.

@Heather Carrow - Anytime.  My wife Sheila is a realtor also, so you might already know her.  She is very active and one of the top sellers in the County.  She just moved from Long & Foster to Keller Williams and is in the process of getting her Delaware license.  We have a rehab project going in Elkton, in addition to the fixer upper that is our current home in Worton (Kent County).

@Brian Tome-Can I message you. I would like to know more about your yellow letter campaign 

Is La plata, MD a good area to invest in?

@Brian Tome that is awesome!! I don’t know her, unfortunately. I am a new agent and investor. I just got licensed at the end of last year and we are looking for our first investment property. Where in Elkton is your latest investment property located? I’d love to get together sometime. I need some more local friends in the business😊