Baltimore multi family

[Edward Holland]

I would like to hear what everyone is thinking about Baltimore Maryland. I have been watching this market for a few years and I’ve gone back and forth with how I feel about investing there. I primarily look at 8-20 unit buildings in the downtown area. I can handle the building analysis, I’m more interested in what the locaL rules are, tenants, and predictions for the city’s culture and overall vibe are over the next few years. 

[Russell Brazil]

I see you are in DC. Do not let Baltimore's proximity to DC obscure the fact that they are polar opposite markets. Baltimore is a very high risk market, which is evident in the higher cap rates there, and DC a very low risk market as reflected in the low cap rates there.

Now there is nothing inherently good or bad about any degree of risk. But as I stated many years ago when I was on the BP Podcast, that the biggest mistake investors make is an inability to properly understand and measure risk, and thus they deploy their capital into assets that do not match their personal risk tolerance.