I am in San Diego, and looking to invest somewhere that cashflows. My investment partner has a son that attends Johns Hopkins, and I know nothing about the area. Does anyone have any insight on a good area? Also, the houses look older, so I am concerned about plumbing, foundations, electrical and roofing. Am I missing anything?
A lot of northeast Baltimore is more affordable c grade stuff. In general north of Cold Spring and east of The Alameda. Obviously such a broad range will need a little more in depth analysis for exact estimates but a lot of that is solid c. If you keep pushing north toward Towson Cedarcroft and Lake Walker are alright. Some of the rest of the I-83 corridor through the city. Between Mt Vernon and Charles Village there are small sections that are alright. Thats the same deal with Pigtown small sections of it because a lot of it has been bad but upand coming for a longtime. I can send you a pm.
I have not looked in the market personally, but I have heard more NOs than anything for that market. I think it just depends on your risk tolerance. I am sure there are prime locations within it, but if your conservative, it may not be the way to go. If you like to get your hands dirty, it just might be the place for you.
Erickson, I am brand new to investing and very conservative. This does not sound like a good place to invest, since I am far away and unfamiliar with the area. Thanks so much!
Haha, I’m from Baltimore but just moved back to MD after spending 5+ years in Pacific Beach. I have a few rentals in Baltimore now and came back to get more.
Tons of potential here with low barrier of entry, you can get move in ready townhome/row house for $140k that rent for $1400, not really a BRRR stRategy or you can BRRR fixer's for $60k with ARV of $150+. But its street by street here so do your due diligence. DM for more info
If you want cash flow it is a good place. A lot of the naysayers assume you are someone thats going to buy in the hood with unrealistic expectations because its cheap. I'm a pm and an agent as well as an investor here. I have been a pm full time here for years managing in all asset classes. I don't manage D grade If you get C grade or higher with mid 100s for an arv you should be fine. To guarantee things to a higher level Id purchase in a good neighborhood a rowhome with atleast 3 bed 2 full baths for over 200k. It would be a B grade investment but things like tenant quality would void many hidden expenses in the long run. As a room rental like your partners son might consider living in it could cash flow better and hit the 1% rule equivalent to what was said about 140k purchase c grade rentals that go for $1400 per month.
Another option is a fixer upper in a b grade area but from CA I think managing a value add would be hard unless your partners son got involved or you paid more for better contractors that would wreck a lot of profit.
The buildings are old also consider lead paint and many are on boilers which will really matter with apartments. Lead is not a massive expense but will add to things.
For neighborhoods Hampden, Woodbury, Charles Village are a few. I own and manage in those 3. The inner harbor is a little more $ but has the advantage of a faster commute to DC plus bring near the water. Both will give good tenant quality.
When evaluating know in general d grade expenses spike and reliable pm is not feasible so really only self managed properties work and from CA that voids that option. C grade you can get it but expenses will not be what they are in B or A grade properties where they will really be low. You can still get a B grade option for much lower entry. If you are thinking of buying a room rental place for your partners son that will reside in and keeping it after he leaves thats a great idea. PM me if interested or you want to discuss.
I’m also currently looking to buy house in Baltimore city but in my case I’ll be house hacking.
@Tim Jacob what areas do you recommend besides the one you already mentioned. I’m looking for a B/C neighborhood with at least 3 bds 2 full baths. In the 150k-250k range? I’m more than willing to do some renovations if needed.
A lot of northeast Baltimore is more affordable c grade stuff. In general north of Cold Spring and east of The Alameda. Obviously such a broad range will need a little more in depth analysis for exact estimates but a lot of that is solid c. If you keep pushing north toward Towson Cedarcroft and Lake Walker are alright. Some of the rest of the I-83 corridor through the city. Between Mt Vernon and Charles Village there are small sections that are alright. Thats the same deal with Pigtown small sections of it because a lot of it has been bad but upand coming for a longtime. I can send you a pm.
I'm a native and still live in Baltimore. As everyone knows, it is block by block, but there are many decent areas in and around the city. And there are many areas that are "hidden gems" if you have the local connections.
You just have to be careful and do your due diligence. You should not buy for appreciation (see my comments elsewhere on BP). But you can fairly easily meet the 1% rule of getting 1% of the retail price as monthly rent.
If your son is attending the Homewood campus of Johns Hopkins, he is very close to Remington and Hampden which are hot areas (and overpriced, in my opinion). If he can commute, you should be able to find something suitable.
@Christine Gee baltimore can be an excellent place to invest. However it is tough to do from afar. having your partners son there to be "Boots on the ground" can be a big help.
As important as being in a good area is to get a good deal. Values can change pretty quickly in just a couple of blocks. There is no secret to it. If you drive from one block to the next you can see exactly why one is better. But that is tough to do by looking at Google Street view or Listings of properties.
The houses are very old and we buy fixer uppers and upgrade the systems so we have a house in excellent condition. You can buy renovated properties but un-renovated properties risk problems due to the age.
You mention Johns Hopkins. If that is the university, that is a solid well developed area and a pretty afe bet as far as neighborhood. Johns Hopkins hospital, which is a teaching hospital so the son could be going, there is a totally different neighborhood. The hospital area is much more transitional. Great opportunity for appreciation as the area develops but more risk if the neighborhood stalls.
There area lot of threads here about Baltimore if you search or set up a "Keyword Alert"
I would add, you must find an agent, actually investor/agent to work with, check their work with other fellow BP investors in the area, then you will be good to go.
Clients Bought some properties right near the hospital and was making them Nice for the hospital workers. Everybody was in favor of it -hospital, city government, contractors and they had some tax abatement cleaning up condemned property. The government election came the administration changed and it all went away with money being lost.
Conservative and brand new in Baltimore, means you will lose all your money and go through hell for years with the worst tenants imaginable. Take it from an investor that lives in the city, and owned a lot of rentals in the city. I'd rather see Lamar Jackson have his legs amputated then ever put a cent into Baltimore City rentals again.
Just posting for the follow thank you everyone for the information. I am native to Baltimore, looking to step into real estate investing this year after taking time to gather some basic knowledge .