New Investor — Starting With Our First Flip in Baltimore. Advice?

Question

Hi all,

I’m new to real estate investing and haven’t closed a deal yet. Right now the only thing I’m doing is Airbnb arbitrage, but I’ve always wanted to get into real estate long-term.

My brothers and I are planning to partner on our first flip in Baltimore, MD since my brother lives near the area and can help manage things on the ground. I live in Southern California, and the entry prices here feel too high for our first deal, so we’re looking out-of-state for something more realistic.

Our goal is to start with flips to build capital, then transition into holding rentals next year.

Since we’re brand new, we aren’t sure what the best starting workflow should look like. If anyone can share tips, recommended steps, or lessons learned—from deal finding, analyzing, running comps, budgeting rehab, to building a local team—we’d really appreciate it.

Thank you!

Elealeh Fulmaran · Answer

Good plan to start in Baltimore with boots on the ground—keep it simple and systemize: pick a tight buy box, then run a “Noise-to-Numbers” scan on volume (agent MLS pulls, 2–3 wholesalers, and one direct-to-seller list), comp only within close radius and similar beds/baths/condition, and budget rehab with two contractor walks plus a contingency; start with light cosmetic flips to test your GC and processes before tackling heavy value-add. Build your core four locally in this order: investor-friendly agent, title/closing, GC, then lender; give the agent your ranges and require video walkthroughs and same-day ARV comps. Protect yourself in the contract with a short inspection, access for bids, and an appraisal/financing timeline you control. Last, set a weekly deal target, make offers fast off conservative ARVs, and track each lead to refine your numbers after every pass.

James Jones · Answer

Mic, good on you for wanting to get your first real flip done with a system instead of winging it. Most beginners jump straight into a project without realizing that flipping is 80% due diligence and project management long before demo day.

Since you’re looking at Baltimore from out-of-state, here’s the workflow I’d follow if I were starting over:

1. Start with Neighborhood → THEN look at deals.

Baltimore is hyper-block-by-block. A great flip on the wrong block becomes a liability.

Have your brother drive streets at different times of day and rate blocks A–F for:

• pride of ownership

• renovation activity

• rental comps

• safety/foot traffic

Don’t analyze houses until you know exactly which micro-pockets you’ll target.

2. Build Your 3-Person Local Team FIRST

Before writing any offers, lock in:

• A local agent/investor agent who regularly works flips

• A GC or renovations estimator

• A hard money lender that lends in Baltimore

Those three people determine 90% of whether your flip succeeds.

3. Your Underwriting Workflow (step-by-step)

Here’s the simple version:

Pull comps → Use only renovated comps within 0.25 miles.

Confirm ARV with your agent → Don’t rely on your own numbers yet.

Walk the property via FaceTime with your GC → Get a rough rehab range.

Plug numbers into a flip calculator (DealCheck is fine).

Apply the 70%-rule as a guardrail, not a religion.

Baltimore flips often pencil between 65–75%, depending on block.

Only write offers where your ARV and rehab numbers have been validated by the local team.

4. Avoid These First-Time Flipper Mistakes

• Underestimating rehab by 20–30%

• Not budgeting for holding costs (Baltimore permits can drag)

• Ignoring foundation/joist issues, extremely common in Baltimore rowhomes

• Buying on the wrong block because “the numbers looked good”

Out-of-state flips succeed when the team is strong, not when the spreadsheets look pretty.

5. Easiest First Project Style

For your first one, target:

• cosmetic to moderate rehabs

• under 1,600–1,800 sq ft

• straightforward mechanicals (avoid full gut rowhomes until you’ve got experience)

Let your first flip be a base hit. That momentum is far more valuable than swinging big on the wrong first deal.

Ken M. · Answer

You need to figure out what it would sell for when you are finished. Subtract sales costs, carrying costs, closing costs and IRS taxes, paying off the loan, and 10% contingency. That's about how much you have left to do the rehab with. These are some of the things you need to take into consideration https://www.biggerpockets.com/forums/517/topics/1268634-how-...

Jules Aton · Answer

Baltimore and surrounding suburbs have some great neighborhoods. Your brother living there is a huge plus. Which areas are you considering? I tend to prefer the pricier ones that may cost more upfront but should allow for high quality tenants and quick resale depending on your plan.

James Jones · Answer

Good move starting out-of-state if the numbers in SoCal don’t make sense. A lot of investors underestimate how much easier your first deal becomes when you pick a market where the margins actually allow room for mistakes.

For a first flip in a city like Baltimore, here’s the workflow I’d follow:

1. Start with the team, not the deal. Your brother being local helps, but you still need: • a reliable agent who knows investor comps • a contractor who bids in writing • a hard money lender who can close fast • a title company that understands investor transactions If you don’t have these four, you don’t have a deal yet.

2. Run comps like an appraiser, not a wholesaler. Use the same zip code, same bed/bath count, same construction style. If your ARV isn’t locked in with confidence, nothing else matters.

3. Build your rehab budget before you submit the offer. Walk the property on FaceTime, get a scope, and get line-item pricing. New investors lose the most money on underestimated rehabs, not bad ARVs.

4. Keep your first flip simple. Cosmetic-heavy, layout stays the same, no foundation work, no major structural changes. The prettiest flips are not the most profitable — the simplest ones are.

5. Don’t stretch to make a deal work. Baltimore is a market where you can be patient. If it doesn’t hit the margin you need, pass. Another one will show up.

If you get those five pieces right, your first project becomes a controlled learning experience instead of a gamble, and you’ll feel a lot more confident when you transition into rentals next year.

Mark Cruse · Answer

Good stuff. Just be careful. Make sure your brother is very familiar with where you are buying. Bmore can be complicated on multiple fronts and it's very easy to go sideways. If the person knows nothing about the area, the community or what is specifically happening, it's a high chance of failure. If done properly, it's a great look. It's a decent city with its share of problems but many things are very positive. I have done pretty good there along with many others.

Scott Chilton · Answer

Mic, you and your brothers are starting off in a good spot by choosing a market where someone from your team actually lives. That will help you avoid a lot of surprises, especially in a city like Baltimore where values can change a lot from one block to the next.

For your first flip, try to keep the process simple. Instead of trying to master everything at once, focus on studying a few small areas and getting used to what homes actually sell for there. Once you understand a pocket well, it becomes much easier to spot a deal and know when to walk away.

It also helps to put together a basic plan you can repeat on future projects. Create rough rehab cost ranges for common items, and keep a short list of people you trust like a local agent, a contractor and a lender. It does not need to be a big group, just folks who can respond quickly and give clear info.

If you build these habits early, your first flip becomes a solid learning experience instead of an overwhelming one. It also gives you a simple foundation you can use again when you move into buying rentals later on. You are already doing the right thing by asking questions now, so keep going.

Diana Khan · Answer

Starting out of state for your first flip is pretty common, especially when local prices feel out of reach. Having a trusted partner on the ground in Baltimore is a big advantage, and starting with flips to build capital before transitioning into rentals is a path a lot of investors take.

At this stage, the biggest things to focus on are keeping the first deal simple and building a reliable local team, a solid agent, contractor, and clear oversight matter more than trying to optimize every step.

I also spend time mentoring newer investors, and a lot of early progress comes from having a clear workflow. If that would be helpful, feel free to reach to message me.

Jason Garriga · Answer

If you’re new to fix-and-flips, the best thing you can do is slow down and double-check—then triple-check—your numbers. If your initial budget is wrong, everything that follows is wrong (“garbage in, garbage out”). Make sure you’re using reliable contractors, because one bad contractor can wipe out the profit on an otherwise solid deal. Do a extremely thorough inspection when you first acquire the property so you can budget for everything upfront; too many change orders will erode your margin faster than you think. A couple quick tips: always order your kitchen materials first—cabinets take the longest to arrive, and late cabinets delay the entire renovation. And have your crew check all materials as they show up; catching missing or damaged items early prevents delays at the end when time is tight and holding costs are stacking.

Ashish Acharya · Answer

@Mic Salvador,

Great advice above, and definitely get a good team together of people you trust: a lender, real estate agent, contractor, and eventually a CPA, so that you can make the most of your investment.

As some have mentioned, the market can be tough for new investors, so go in with a clear plan, and let that plan include taxes. Depending on your other income, short-term vs. long-term strategies can have very different tax implications, and many people get into real estate investing precisely because of how it interacts with their overall financial picture.

Since you guys are planning flips now and rentals later, the tax setup matters more than most people realize.

For flips, the IRS treats everything as active income, not capital gains, so once you’re doing more than a deal or two a year, you’ll want an S Corp (or LLC taxed as one) to avoid paying more self-employment tax than you need to. That structure usually handles all the flipping activity for you and your brothers.

For rentals later, keep them separate. Rentals don’t belong in an S Corp because you lose depreciation and create unnecessary tax headaches. Use simple LLCs for rentals and keep them taxed on Schedule E.

Big picture: plan flips and rentals as two different “tax buckets”. Super easy to set up now, much harder to unwind later. Good luck and happy to connect!

New Investor — Starting With Our First Flip in Baltimore. Advice?

New Investor — Starting With Our First Flip in Baltimore. Advice?

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