What are some Good (Active/Hot) Zipcodes in Baltimore that Investors are actively seeking

7 Replies

I just want to know are there any favorable zipcodes in the Baltimore and PG County areas that investors go after? If so, why these particular zip codes and are they active for flipping or buy and holds?

Brittany

I cant speak for Baltimore, but I can tell you how to find out. All you need to find is a friendly agent with MLS access. From that you can look at average days on market to determine where your hot markets are.

Once you make that determination, then you can look at the houses. The house will determine if the property is a flip or a buy and hold. For a flip, you will look for a property that is much lower price than the local cub-market is commanding. For a buy and hold you are looking for spread between PITI payment and rental or between cash price and annual NOI numbers. In general appreciating neighborhoods tend towards flips, while steady prices tend to indicate rental. This is not gospel but a general observation.

I hope that help

Josh

PS feel free to connect on BP

Hi Brittany.

One thing I have learned in Baltimore is that almost every zip has its share of the good, the bad and the ugly! Sometimes even on the same street.....

While some zips are more suited for flippers, they also contain their rental potentials, as well as blight-for the most part. There are rental investors in every zip code based on their goals. Some can tolerate cash flow in the hood and some want less cash flow in a better part of town. I think you should decide your exact goals and risk tolerance first and then drive the streets to see if the areas match up with what you want.

@Jeff K. nailed it. Every zip code in Baltimore has good and bad areas. Every neighborhood has good and bad areas. Almost every street has good an bad areas. 

Do you really want the hot areas? There is more competition there. Would you rather have a mediocre deal in a hot area or a really great deal in an average area?

@Ned Carey , are you an active investor on Baltimore?  I am also looking for good area to invest.  I am ok with the mediocre cash flow.. just as long as I feel o.k. to visit the property.  Do you know where the city or county is looking to revitalize?

Tracy

@Tracy D. Garrett-Numa yes i a very active in baltimore.  Where to invest is one of the most difficult questions for me to answer. The right answer for me may not be the right answer for you. 

It has as much to do with you as the area. What are your skills, goals, financial and other resources, knowledge and risk tolerance? 

I suggest you get to know either Belair Edison or Edmondson village. Both are mid level rental areas. They may not be right for you but they are a good standard by which to compare other areas you look.

In general, I'm seeing properties sell fast in Baltimore, which is the product of not enough inventory and too many buyers.  It is generally driving the prices up, which is great for homeowners, but not so great for investors.

Anyone have an opinion on the Butchers Hill neighborhood? I like the proximity to Hopkins and Fells Point, but am concerned about my exit based on a 5-year hold period.

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