First time investment

7 Replies

Hello bp family, I am thinking of investing in a SFH in Baltimore to live and rent. I will pay 20% down payment. The property is approximately $ 170,000 but it needs renovations my question is, would a singular house be bad mov, or should I invest in a townhouse instead?

Not enough details in your post. If you want to make money then look at no less than a 4-plex because the property appreciates in value almost exponentially when you increase rents. Going with a single-family home is the hard and slow way.

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It does not mater if house is single family or town house or multi unit etc....

It is all about numbers, location, quality of renters etc...

170k could be a god or horrible deal hard to know without knowing the address or location.

How much renovation it needs?

What is the ARV?

We need some info to give some kind of guidance.

As others stated, not enough info in your post to answer your question. Townhouses and condos have HOA fees and rules you must follow. That can cut into cash flow and they typically appreciate slower than their counter part SFH.

YOu should ask yourself what your goals and needs are first. Do you want cash flow for income or do you want to wealth build (appreciation) which can be market appreciation of forced appreciation through value adds.

@Enoc Flores Morales , as an Investor-Agent myself, I have had several conversations of this topic with my clients and customers. Everyone has a different goals and investment criteria, so this is not a one size fit all kind of situation.

I will suggest that you clearly define what you what and do some research then go from there.

A local Investor-Agent can help shorten your learning curve and save you a lot of headaches as they tend to understand the market better.

Use, and for your research.

Goodluck and go make it happen

@Enoc Flores Morales My first question is why Baltimore?  Second which area of Baltimore?  What do you know about Baltimore?  I do not mean to sound bad or demeaning to you but you need to be prepared with knowledge as well as with a team of licensed contractors that will pull all necessary permits to do anything in Baltimore.  Baltimore has ground rent, so you do not own the land on which your building sits.  Depending on the area you can easily be throwing good money at a property that you will never get a return from.  Due Diligence is key!  If you can secure a multifamily instead of a standard row house that would be advisable but that can be challenging to locate.  I have friends that have been burned by location, lack of quality contractors that follow the rules in Baltimore, and lost money.  After doing my own homework as well as seeing documented problems from others that I know, I will not look at Baltimore as an investment opportunity as there are other areas in Maryland to find better returns with more peace of mind and security.