Any multi-unit owners in the DMV Area?

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Russell Brazil · Answer

Well Baltimore is a completely different city.  The catch is Baltimore is among the highest risk markets in the country. Remember, life doesnt happen like a spreadsheet.

Tim Jacob · Answer

I deal with multi family up in Baltimore.  From what I see for a decent deal the place needs to be in a decent location.  50k per unit screams bad location.

1 thing for expenses you didn't mention is unreimbursed utilities.  If the place is on boiler heat you are getting slammed with large bge bills in the winter.  Also highly likely the building isn't metered for water.  Chances of the tenants reimbursing for any of this is in a bad area is lesser than not.  Go in a good area and they will.  Atleast with the boiler you can convert to baseboard and assuming the units are electrically metered force them to pay for heat through that.  The water you probably cant and will be stuck with.  Even if you seperate the water lines  you still will have to trust the tenants.  Unreimbursed utilities can hack into your bottom line immensely especially in Baltimore and especially in multi family.

Along with maintenance and vacancy and reliable pm I think even at 50k per unit the deal is very good in a lot of parts of town.

I don't work in many parts of the city anymore.  It just isn't worth the hassle.  Its not worth it for the pm.  If you call around you will find many pms have the same policy.  Who is left are usually bottom of the barrell or are inexperienced pms who might not be but will quit on you after a little while.

If you let me know the address I can tell you if the building is in a good enough part of town.

Location, location, location as they say in real estate.

Best deals I think are in places like Mount Vernon or close by that are value adds which will still go for a little less than100k per unit.

Yannik Cudjoe-Virgil · Answer

@Kristopher Allen 9 units at 50 per door in Baltimore sounds like a deal that in a lower income area in Baltimore. I would definitely recommend you perform some due diligence on the deal and know what your doing in Baltimore City. Like one prior post said, Baltimore is an at risk market, especially in the city. A lot of insurance carriers are declining policies in the city due to an increase in claims.

Cassidy Burns · Answer

@Kristopher Allen as @Russell Brazil said, DC and Baltimore are 2 totally different areas.  Not only different areas, but different types of investment vehicles.

CAP Rates are essentially the risk you are willing to take for a return, 2 sets of appliance packages stolen and there goes your Cash flow for 3 months.

That being said, there are some decent areas in Baltimore that a lot of investors are making great returns, just make sure you do your due diligence, and once you've done that..... do it again

Russell Brazil · Answer

What questions do you have? Im actually a member of Bright MLS's multifamily policy workgroup.

Cassidy Burns · Answer

Hi Kris,

Many Washington DC / DMV multiunit investors here.  What are the details of the deal?  Happy to give my opinion.

Kristopher Allen · Answer

@Russell Brazil @Ozzy Sirimsi @Tim Jacob @Cassidy Burns. Never got to say thanks, but thank you all for your feedback!

Ozzy Sirimsi · Answer

In Baltimore, in could be an okay deal depending on the area.

9 units for 449k sounds like a low income, high crime area. If you can handle it, it could be fine.

it can also be a nightmare for an out of state investor.

You should provide an approximate location, so we can tell you what to expect.

Ben Guttman · Answer

@Russell Brazil very true

Kristopher Allen · Answer

@Russell Brazil It seems legit though. It's in Baltimore however so that definitely plays a role

Any multi-unit owners in the DMV Area?

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