Is it safe to say that most of Baltimore 2-3 bedroom Townhouses in good condition, lead free and with AC will rent for $1400/month? To be more specific, I'm talking about Dundalk,Middle River areas in Baltimore county
And what's a reasonable annual ROI for each property if bought in cash? After taxes
Baltimore can be block by block check out rentometer for the properties you are looking at and you can get better idea for yourself. I would say to get 1400 on a two bed room is going to be kinda tuff.
Thank you, Nick!
So if I want to aim for that rent range, should I focus only on three bedrooms townhouses? While taking the "block to block" concept in consideration of course.
On average, I'm seeing it closer to $1200. I'd say the range is $1100-1350. Your ROI will of course depend on many factors (maintenance, property management fees, quality of tenants, etc).
Depending on the purchase price buying with cash generally places your return on investment below what you could get by simply putting your cash in a REIT or income fund.
If you purchase for cash below 50K it can be a good investment but definatly not if you are above that price range by much.
Most properties purchased with cash have negative cash flow after allowing for a return based on the opportunity value of cash. This makes the liability of actually owning brick and mortar a bad investment risk.
Not safe to say at all actually.
1. Big difference between 2 bed and 3 bed
2. Big difference in locations.
3. 1400 a month is pushing the limit on what less well to do people can afford.
No problem! Yea you would want 3-4 bedrooms to get that kinda of rent. Also by block by block I mean that rents can vary depending on what street your on within the town. In Baltimore you can have areas with higher rents and areas with lower rents that are not that far apart from each other so you have to look into what the house you are interested in would rent for.
@Ramy Fayad Seth summed it up well. I have a minor disagreement and an addition
No you cannot assume $1400 rent.
Big difference based on number of bedrooms.
Yes location can make a big difference. However section 8 rents don't currently vary as much as you might expect. I know some people who get $1300 rents in relatively weak areas for high quality houses in poor neighborhoods. But no decent market tenant would rent there. No market tenant could afford that much rent. In other words market rents vary more than section 8 rents do for the quality of a neighborhood. I expect a change is coming in section 8 rents.
And yes $1400 is pushing the limit for a 3 bedroom in all but the nicest areas.
I'm pretty sure most people didn't actually read the specific question in this post and/or don't invest in dundalk/middle river. I own 2 properties in the county side of Dundalk and one in middle river. I only work with programs, I don't do market rent. in my career, I've only bought 3bds. For my Dundalk properties I'm getting 1500+ rent per month for my properties and my Middle River property, I'm getting the same. Taxes are typically 1400-1800 per year in Dundalk/Middle River. Use an ROI calculater to calculate ROI.
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