Multi family investing in PG county, Maryland

Multi-Family and Apartment Investing
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Multi family investing in PG county, Maryland

Yi Zhao
Investor · New York City · Member since 2016 · 46 posts · 5 votes
Hi all, I currently do flips in PG county Maryland. I've been thinking about doing some buy and holds. Seems like from the BP podcasts that duplex, triplex, etc are a good way to go. However, I haven't found any that would even get 1% monthly cash on cash return. The multi's I've looked at are around Tacoma park and college park for 350k-ish. Seems like single families around 100k-120k have much better cash on cash return in PG. Am I doing something wrong?
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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y

Takoma Park has incredibly restrictive rent control. The multis there are almost guaranteed to be cash flow negative if you purchase them using leverage

[email protected]301-893-4635Podcast Guest on Show #192
District Invest Group545 Reviews
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  • Chris Tracy
    Specialist · Plainville, CT · Member since 2015 · 478 posts · 389 votes
    9y

    It's the market you are looking in- too far North.  Go further South and more Midwest.

    0Reply
  • JR T.
    Financial services executive · Frederick, MD · Member since 2015 · 609 posts · 341 votes
    9y

    No nothing wrong except you're not recognizing the operating costs of one multifamily are less than the operating costs of three single families.

    3Reply
  • Aaron M.
    Rental Property Investor · Ellicott City, MD · Member since 2016 · 79 posts · 23 votes
    9y

    JR T., can you expound your comment?  Are you suggesting he do his analysis differently?  

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    9y

    Takoma Park has incredibly restrictive rent control. The multis there are almost guaranteed to be cash flow negative if you purchase them using leverage

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    5Reply
  • Yi Zhao
    OP
    Investor · New York City · Member since 2016 · 46 posts · 5 votes
    9y

    Thanks guys for the interesting/useful input. What is the best area in PG for duplex/triplex/quadplex?

    0Reply
  • Account Closed
    Riverdale, MD · Member since 2016 · 18 posts · 12 votes
    9y

    From what I've found in PG county, single family rentals seem much more feasible from a numbers perspective (i.e., there seem to be wayyyyyy more single family homes than multis in the area).

    I am currently exploring acquiring a Single Family Home in the Hyattsville area.

    1Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    9y

    The DC Metro area in general has a very low number of 2 to 4 unit properties compared to other metro areas. My member blog has a post about this. A strategy built around 2 to 4 unit properties will not take you far here due to the low supply of the asset class.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    4Reply
  • JR T.
    Financial services executive · Frederick, MD · Member since 2015 · 609 posts · 341 votes
    9y

    @Aaron M. In a 3 unit multifamily you'll have one roof, one common area, often one hot water heater/heating system reduced costs from visiting each unit more often. Three single families you'll have 3 yards, 3 roofs, etc etc Over the life of the 3 singles vs 1 triplex the operating expenses will be slightly less with the triplex. 

    But as Russell Brazil, a wise man, said you have to work with what can grow in your garden. Get into SFH or perhaps some condos with lower dollar HOAs that take care of a lot of the landlording for you. Long distance landlording is for the people who buy gold bars on late night TV.

    1Reply
  • Malinda Derry
    Wholesaler · Pikesville, MD · Member since 2015 · 5 posts · 0 votes
    9y

    3824 1st. St. SE DC, 20032

    Price 210K Discounted 40k Recently

    By Appointment Only

    0Reply
  • Paolo Nascimbeni
    Realtor · Derwood, MD · Member since 2015 · 38 posts · 4 votes
    9y

    I am a realtor and an investor in this area. I do not think you can get a CAP rate above 7 in this area PG or MC when you add in all expenses. I had some luck however buying properties that needed rehab, I fixed them up and then rented. I never really tried multifamily so far- I never wanted to deal with writing multiple leases and dealing with many tenants. Also there are few multifamily in the area and most of the one I saw for sale are quite old.

    1Reply
  • Mathew Hinson
    Member since 2017 · 2 posts · 0 votes
    7y

    Good evening. I was wondering if would make sense to build a four unit in prince georges county due to the lack of multi families available. 

    0Reply
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