Investor · Rockville, MD · Member since 2013 · 24 posts · 0 votes
Hello BiggerPockets community,
I've been reading BP posts and listening to podcasts for the past 12 months. So I guess it's time to dive in. My name is Andrey. I live in Rockville, MD. I am here to learn more about buy and hold, and of course to network. So far I am planning to commit 70-90K.
I'll be looking for several answers before I'll start investing:
1) Need to identify area of investments. Wash DC area is far away from the 2% rule (please feel free to disagree with me. I'll be happy to know that I am wrong). So should I be looking more into Baltimore area? Any reasons to stay invested in Montgomery County.
2) If Maryland area is Ok for investments, should I pursue real estate license?
3) How do you justify less than 2% rule in Montgomery county?
4) I'll be looking to select where should I concentrate (single family, townhouses, condos or multy family)
It is nice to see a fellow investor in the Maryland state. Even though I do not have much knowledge of buying and holding, I may be able to send leads your way since I am currently a real estate wholesaler. Please let me know if you are interested in networking.
- welcome to BP, "officially." If you haven't already done so, Set up some keywords so that you can get email alerts when anyone discussing those keywords posts here. There are also multiple Meetups and REIA meetings in the DC/MD/NoVA area.
Baltimore is a market where the 2% rule can be met but it is one that you will have to study well. I am still looking to do my first deal. I've learned a lot in the past 7 months, as I'm sure you have purusing the BP posts. Lots to learn here. I was born and raised in MoCo. I think there is opportunity everywhere but it is harder to find it in certain areas (like MoCo vs Baltimore City). It also depends on your risk tolerance and ability to contribute financially (but the latter is where being serious about your networking can really, REALLY help you)..
Investor · New York, NY · Member since 2013 · 90 posts · 43 votes
12y
@Andrey Y. I'm just kicking off my start with 100-150k in Baltimore, best of luck to you but I've had no luck in DC. Too many investors with deeper pockets than mine
1) Yes DC would be tough to get a 2% deal. DC is also tenant friendly. I am sure there are deals in Montgomery county but they are probably scarce. Forget the 2% rule, but remember the 50% rule. About 50% of your gross income will be expenses other than financing expense. Then decide if that meets your goals.
2) You'll get a lot of opinions of whether to be an agent. I ussed to be but I gave up my license however I do have access to the MLS. That is the most important part.
3) Forget the 2% rule, it makes some assumptions about the type of return you want. Some want only cash flow, some investors want better areas with more opportunity for appreciation. Remember the 50% rule. About 50% of your gross income will be expenses other than financing expense. Then decide if that meets your goals.
4) Condos are the most risky. HOA fees and HOA management is out of your control.
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
12y
Welcome!
You do not need a real estate license. It's unnecessary.
Do plenty of research on landlord/tenant laws in MD. Different counties vary in their laws, so know those differences.
You said you planning to commit to $70-$90K. Is that your price range or the amount of money you have? If it's your price range, you can definitely get a property in that range. Look in Baltimore County such as Dundalk or Baltimore City (I personally think landlord laws are better in the County). But if that's the amount of cash you have, I would say use it to put the downpayment on a few properties and mortgage the rest of the amount(s)!
Investor · Rockville, MD · Member since 2013 · 24 posts · 0 votes
12y
@ (I hope I am doing quotes correctly) Thanks a lot for books. I'll be definitely reading lots of them to fill loooots of the real estate knowledge gaps. BP podcasts are always great.
@, I've heard that about DC from my mortgage broker. I am curious why DC is so popular? I'll be looking forward to hear more about your experience in Baltimore. I believe @ prime market is Baltimore so he can shed some light about Baltimore and also Baltimore vs DC.
@, It's good to hear from you. Your posts are always helpful.
Re: " ...gave up my license however I do have access to the MLS. " Do you have it through one of you agents?
Re: "...Some want only cash flow, some investors want better areas with more opportunity for appreciation." So far I lean towards better areas with appreciation opportunities, with some cash flow. Looks like better areas will require less management. I saw different point of view on this topic. What is your opinion?
Re: Condos. I completely agree with you. I currently own a condo in North Bethesda area. The fees are climbing higher and higher and the management wants to renovate the lobby area completely (the building is 6 years old).
Investor · Rockville, MD · Member since 2013 · 24 posts · 0 votes
12y
@. So far I need to select the market and polish my business plan. I think in about one months or less I should be able to tell you where and what properties I'll be looking to review. I really appreciate your offer.
Investor · Rockville, MD · Member since 2013 · 24 posts · 0 votes
12y
@, thanks for the welcoming me here. I'll be definitely attending REIAs. Do you have any recommendations about Meetups and REIAs? I know that tastes differs, but it's always interesting to know BP members opinions.
Baltimore is also on my potential list. Did you look at Hagerstown, PA?
Investor · Rockville, MD · Member since 2013 · 24 posts · 0 votes
12y
@, I agree about landlord/tenant laws. DC area and Baltimore are very tenant friendly states and I'll be definitely reading about laws. Thanks a lot about County vs City. I'll look at it. In my previous post I mentioned amount of cash that I currently have for the down payment.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
12y
@Andrey Y. My business partner is an agent. I have access as his assistant. Agents are allowed up to 5 assistants that can have access to the MLS. Being an agent costs in the thousands of dollars a year. We figured there was no sense for us both to pay that.
My favorite group is the BWI Meetup It is coming up this Wednesday in Columbia. It is free and several BP members usually show up. Christina R is usually there too.
Investor · DMV Maryland · Member since 2013 · 867 posts · 370 votes
12y
@Andrey Y. @Nicole Williamson @Amir Stoudamire @David Kosiorek - there is a BW Meetup this Weds as Ned mentioned. Great place to network and get pumped. Ned has the link above. See you there!
Washington, DC · Member since 2012 · 40 posts · 13 votes
12y
Welcome Andrey,
DC has some challenges as far availability that meets 2% rules and the like on first glance. The key is being creative, is there a big 1 bedroom that would meet code as a 2 bedroom where a condo association could be finessed. Is there potential in a rowhouse for an English basement that can become another rentable property, etc..
The pluses are the high rents and demand for them. I prefer new construction and extensive rehabs myself but I have friends buying/holding C properties and after some alterations to increase occupancy achieving fantastic yields.