Updated about 7 years ago on . Most recent reply
Purchasing additional rental property in the Baltimore Area
I've been a landlord for about 7 years now on one end-unit townhouse. I've had about 4 tenants and have dealt with my fair share of various issues. I feel I have enough experience to get some more rentals. I'm extremely handy and want to get some rehab properties. I was reading somewhere that you want to have a net profit of around 1% of your investment. Meaning if you pay 100,000 for a house you want to be making at least $1,000 a month net?? Seems a little high.
Anyway I was looking at properties within Dundalk and then estimating the total cost of the work, then looking what similar houses are renting for in that area? What's the strategy for this, I'm looking at trulia and zillow for properties. I'm also using the zillow "rentisment" to get a monthly rental estimate?
I'm budgeting around 100 -120 K, I would put down 20 - 25% the mortgage would be under 1000 a month (between 4 to 700 with taxes). I figure I could net in around 700 a month etc... My concern is buying something that is in a "bad area" how do you judge the neighborhood? What tools do you guys use?