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!

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.

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

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.

Leona Du · Answer

Welcome! Baltimore is a solid market to start in, especially with family nearby. Biggest thing early on is nailing comps block-by-block and getting a GC + inspector lined up before making offers.

Also, if you ever run into deals where you don’t want to tie up all your cash in earnest money, EMD financing can help you stay liquid while still moving fast on flips.

Good luck on your first one!

Tim Jacob · Answer

One major thing I would be upfront on is the amount of work done and how people are being compensated.  If your brother is physically there he will be doing the project management part if it.  Its going to be really hard to be profitable on a flip unless 1 of you project manages things.  That is a lot of work.  I usually charge 10% and I include material into the charges if I do that for other people.  If he has to do all that he is going to be resentful unless you are taking on other tasks of similar

You should look into off market deals, tax sales, fsbos, and some on market properties.  Its a lot of work and you can easily open up a can of worms easily in renovations.

Delegating responsibilities is really something that can sink this as well as unexpected maintenance.  I work in the Baltimore area. There are a few good meet ups here in networking events.

Flipping can be possible just take your time planning things out before committing to things too much.

Nicholas L. · Answer

@Mic Salvador

hello. i get the appeal of wanting to start in a lower cost market since you're based in CA.  but, reading your post... for me, there isn't enough of a case / basis for success here.  your case is: you want to build capital, you live in CA, your brother lives in MD.  OK.  what else?

not trying to be discouraging - just honest.  the market is really tough right now for new investors.  inventory is expensive, money is expensive, good contractors are booked up... it's just tough. "flipping to build capital" sounds great, but if it were that easy we'd all be doing it.

the first steps are to build a network and figure out how you're going to source potential inventory.  can you fly there so you and your brother can divide and conquer?  who is going to do what?  you need to be meeting other investors, looking at properties, talking to lenders and potential contractors... there's a lot you can do to start but most of it cannot be done from your computer.

hope this helps - happy to help further with more specific questions.

Arman Ahmed · Answer

@Mic Salvador

Hey Mic,

I get why Baltimore feels like the logical starting point since your brother is local, but if your goal is to maximize returns and reduce upfront risk, the Midwest offers a lot more opportunity for first-time flippers. Entry prices are lower, rehab budgets are more predictable, and the rental demand allows for either flipping or holding later. Focusing on off-market, undervalued properties in C-class neighborhoods can give you the cash flow and equity growth that’s tough to find in higher-priced East Coast markets.

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

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