Best College Town around Baltimore MD area?
Hi all, I ran some numbers on a $350,000 4 BDR / 2BR house in the center of Charles Village. The numbers did not look to add up to be a profitable rental -- with $2,200 monthly payment-- $1419 P&I (I estimated this at 4.5% for a business loan, hopefully this # is not too low), $67 insurance, a staggering $715 in taxes (2.248% interest per year). On top of this, estimated $3000 capital expenditures / year. House was not a rehab project. I projected the following, projecting 4 different rooms with varying occupancy across $800, $725, $750, and $700 room (average around $743/room) :
100% occupancy : $6300,
89% occupancy : $3000
73% occupancy : - $3000.
I am more knowledgeable about investing in the stock market, and I cannot finesse these numbers to make sense. Even in the best case scenario, the ROI does not justify the large capital investment and relative lack of liquidity as compared to my stock portfolio (where I have more knowledge & risk tolerance, even in volatile markets). I think that the above would have made a lot more sense if it were not for the high Baltimore City taxes.
Given my own back-of-the-envelope calculations, I am looking for suggestions about different college towns in Maryland that are worth investigating.
Sorry if this post was too detailed. I greatly appreciate everything that I have read on this forum. If there is any flaws in my thinking or analysis above, kindly let me know that too! Thanks!