Specialist · Edison, NJ · Member since 2020 · 46 posts · 4 votes
Hi,
I'm currently in NJ but born and raised in the DMV area. I'm trying to decide to either A - use a FHA loan and find a place in Jersey that I can rent out in the long run, or B - buy and investment property in Maryland because the property taxes are lower. If I decide to buy a property in Maryland, does anyone know of any areas with a high percentage of renters ? I know silver spring and the Greenbelt area are places but does anyone know of any other areas? Thanks
Property Manager · MD · Member since 2015 · 186 posts · 125 votes
6y
There are two areas that are going to have a large % of renters. The areas that cater to 20 somethings and low income areas. An example of 20 something is Canton in Baltimore. An example of low income is West Baltimore.
Investor · Alexandria, VA · Member since 2016 · 859 posts · 460 votes
6y
I'd sit down and look at the numbers on both scenarios. What is the ROI? I'm assuming that the primary residence purchase is going to require significantly less $$$ down, allowing you to live in the unit and move out within 1 year and turn into a rental, this ROI will be extremely high as long as the rents support the property/area.
Buying as an investment you will need 20-25% down and then you are looking more at Cash on Cash Return from your cash flow. Just depends on where you are financially.
THAT BEING SAID.
I always recommend find a way to put as little down as possible while making the numbers still work from a rental standpoint. Allows you to eventually scale because cash is king.
@Briana Gilbert some good areas would include fort Washington, Bethesda anywhere near dc will be great with renters but even as farther out as Gaithersburg Waldorf the dmv area is a great area to invest in for renters
Specialist · Edison, NJ · Member since 2020 · 46 posts · 4 votes
6y
@Cassidy Burns thanks for your advice, yes the property that is planning to live in would require less money down. Just have to find an area that has a high rental percentage in NJ. Thanks again
Flipper/Rehabber · MD · Member since 2020 · 24 posts · 7 votes
6y
Hi @Briana Gilbert! I am live in Baltimore and am also considering a FHA loan to house hack. Baltimore neighborhoods except the ones around the harbor can be hit or miss, block by block. I would look around the colleges, and Hopkins for more affordable and developing area prospects. My plan is to use the 203k loan, find something on the cheaper side, a little run down, fix it up and hack. If I do it right, I should end up with some build in equity, cash flow, and someone else paying my mortgage.