Hello I am new to bigger pockets I was introduced to this by a friend. I am currently active duty in the Navy and am working in D.C. I am from Annapolis and when I found I was getting stationed in D.C. I wanted to invest in Annapolis. I bought a house with a VA loan that I will live in and fix up for 2 to 3 years. I really want to get into real estate buy looking to buy another property with some slight TLC that I could use as a rental property. I have a partner from Annapolis that is interested in going in on it with me as well, he has strong contacts in the contractor side of the house. I was looking for any advice for someone that is in the area of Annapolis for someone new like myself. I was interested if I should look for an apartment vs. a single family home? I also was considering looking to buy something in a nearby area such as Crofton etc. Thank you for your time!
Welcome to the BiggerPockets community!
Glad to have you with us.
Welcome to BP! I'm in the Navy as well (Reservist but currently recalled on active duty in Bahrain) - graduated from USNA in 2004. I live in Annapolis and invest in the area...my recommendation would be to start with a single family...multifamily is harder to find in Anne Arundel County. You can find some multifamily in Baltimore but you have to be careful picking the neighborhood. I have a handful of SFR rentals in Baltimore and like the cash flow they offer. Where are you working in DC?
@Harrison Chaires I live in Severna Park , I have found that Pasadena gives you good bang for the buck and you can find fair deals . You get better rents in the good school districts . Glen Burnie is a bit cheaper , rents are close to what you get in Pasadena , but the schools arent as good . Prices in Annapoils are a bit high but the rents are higher . Severna park is too expensive , Arnold and crofton are nice but finding a deal isnt easy .
@Harrison Chaires thanks for your service and good luck! I'm from Annapolis as well and just came back a few years ago after being gone for almost 15. I have properties in Arnold and Baltimore City. Lots of good stuff around in a variety of types and conditions. Just depends on what you really want. PM me if you'd like to get together and chat. I come across deals all the time that make me wish I had more time and money.
@Harrison Chaires First, thank you for your service and welcome to BP, Harrison!
First, I think you should take a brief moment to think: WHAT do I want to do here and WHY?
- WHY: why am I doing this?
- WHAT: What type of strategies do I want to focus on for a start
The reason I highlight the above items above is that the SFH and Multifamily asset classes have somewhat different strategies. In addition, for the DMV area, Multifamily assets are concentrated in specific areas.
After doing your audit, you should do a broad search, say, for example, search Multifamily on Realtor.com for the state of Maryland just to gauge where the inventory sits. Of course, I'd suggest you use the map tool to see where the distribution of inventory across the state, so you can narrow your market(s) of interest.
Hope this helps, Harrison. Goodluck. Thanks! - Ola
@Andrew Hemminger I agree I have been primarily looking at single family. i really want to get something modeled after the house that I bought that is about a 1.5 miles from downtown but in the Broadneck school district. I preferably want to stay on that side of the Severn river. I am working at the Pentagon for the F-35 program. Did you use the VA loans at all for any of your purchases?
I agree with the assessments that In Annapolis inventory is low and the cash flow won't be as good. In most areas in Baltimore City and Glen Burnie you can get higher rent ratios ranging from 1.5 to 2 percent.(eg a property that rents for $1200 would be as low as 60k all in at 2 percent ratio). Depends on your objective (cash flow versus equity).
@Travis Paez I am looking for deals all the time. I have time and resources. Please connect with me.
@Harrison Chaires The Broadneck and Severna Park School districts are the best in Anne Arundel County. That is good for appreciation but drives up the purchase price of most homes to a point where they don't really cash flow. I used a VA loan for my primary residence...my investment properties are funded via conventional financing (20% down).
Welcome to BP and thank you for your service. Depending upon your cash flow goals, your idea of Crofton might be the better decision profit-wise, unless you can find a very good deal in the area of Annapolis that interests you but that could come at a price for rehab costs.
Where you'll invest depends on your goals. Specifically, are you primarily looking for appreciation or cashflow (keep in mind that the two aren't mutually exclusive, but what is your priority?). Most investors are focused on cashflow, in which case I suggest focusing your search outside the Annapolis city limits. Glen Burnie and Pasadena are two options that have been mentioned before and that I second.
My goal would be start with a small property primarily with cashflow as the goal. I have never been too familiar with Pasadena or Glen Burnie but certainly am will to explore! Thank you all for the advice by the way I was not expecting this much support.
@Andrew Hemminger Got it that is what I would be looking to do as well!
@Richard Carlton I agree I need to get some more specific goals I would say a place that was close by to Annapolis with cashflow would be my priority.
Welcome to the BP community @Harrison Chaires !
There are pockets of opportunities in Annapolis, but patience and persistence are key! Best of success on your journey, and as others have suggested, start outlining your goals on paper, decide what kind of cash outlay you're ready to commit to, identify funding sources, etc.
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