Have tenant applicant from Baltimore trying to sell their home. He says vacancies are high. How is the market? Has it recovered from 2008?
The homeowner market is growing and prices are showing mild appreciation. The market for properties needing rehab for retail is tight. Lots of buyers but they say not enough inventory.
The rental market on the other hand is dirt cheap. No one is financing the purchase of rentals so prices are in the toilet (great for buyers who have cash)
This is a crude generalization as the Baltimore market is a large market.
@Ned Carey when you say nobody is financing rentals and they are therefore dirt cheap, are you referring to loans for investment properties, regardless of the number of units? I just financed a 3 unit using a 30 year fixed rate conventional loan as a non owner occupant. Are you saying these types of properties are cheap right now, or that the rents are very inexpensive right now (or both)?
@Aaron A Traditional lenders are very tight right now about lending for rental properties in the city of Baltimore. It can be done but it is very tight. If you are a full time real estate investor without w-2 income and hold properties in an entity like an LLC it is especially tough.
I am referring to SFH and smaller multi unit properties. Larger commercial stuff I suspect is also harder in the city but that is not a market I play in.
Properties are very cheap now because of limited supply of buyers with cash. Rents are very high relative to prices.
If you got financed in Baltimore city for that 3 unit I would be interested in the details.
PS you might want to get a profile pic as there is more than one Aaron A. here.
the start of this thread is confusing. By vacancies, there are many throughout the city because people don't like living in the majority of it with crime and property taxes what they are. Rents are strong depending on where you are. Financing can be accomplished also for buy and holds, due to the "dirt cheap" pricing
My applicant was shocked to find that there are multiple tenants for the properties he was trying to rent and kept getting beat out. My rent is discounted at $1300 just because I want to limit the lease to one year. Kitty corner there is a house where the converted garage rents for $1350. I have people begging me to rent my place to them.
What is the problem in Baltimore? Is business there just not doing well?
Hey @Ned Carey - thanks I will add a picture when I get home.
I am planning to write about my experience after we close and the whole thing is official. I loan is actually conditionally approved so the only thing that could mess it up is the appraisal, but I think I'll be fine because I'm buying for what the seller bought the property for 12 years ago and he financed it as well. I don't know though. This is my first property, investment or otherwise. I will make sure to keep you posted (pun intended).
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