I'm considering investing remotely in Baltimore, especially around John Hopkins University. The numbers I've been seeing on some of the deals seem pretty good for either flipping (I'd have to have a partner on the ground that I can trust) or as rentals. But my biggest concern with any out-of-state investment is, "If I build it, will they come?"
I would love to hear some advice from the locals regarding this area. I've looked at some threads regarding general Baltimore and they mention things like laws favoring the tenant and making sure there are actually sold comps otherwise your property will sit (although flippers should be doing this in any market).
I have not invested in Baltimore but have invested out of state. I would recommend it as long as you have good boots on the ground. I'm not sure about Marylands landlord-tenant laws but that is something that you should look into to make sure you are in a landlord friendly state.
I invest exclusively in Baltimore City. It can be a gold mine- but like any gold mine- it takes work and there is risk. I don't have anything to compare our laws to because it is all that I really know but in general it is like this- if a tenant doesn't pay you can have them evicted in 6-8 weeks. If they break their lease it is about the same. If they are professional tenants and really skilled at working the system it can turn into a nightmare- probably like most places. I NEVER go to rent court. There are companies that will do it all for you. As far as boots on the ground goes- you can say that about anywhere. You need people that you can trust. Sometimes that can be the hardest part of the business.
Been here investing and auctioning real estate for over 40 years - yep it can be good if you know what your are doing - I work a system called Control and Roll - selling real estate you don't own for a cash profit. Investorsuniteddotcom - it works.
@Nghi Le Baltimore, just like any city, has its good and bad areas. However, there is a lot of demographics changes going on right that will definitely help out city grow in the coming years. As an investor around the John Hopkins, I can say to you that this is area you want to be especially if you're considering out of state. The hospital is a major driver in the area and the tenants you'd get who give you too much hassle.
@Nghi Le I'm not physically located in the Baltimore market, but I study it regularly. There is a lot of investor activity in and around the city center. I've been able to identify hundreds of flips at 70% ARV (not including construction and other costs) in the last 6 months. This doesn't include any off-market transactions. Most of these are basic interior remodels so if you could find even a modestly experienced and reliable crew on the ground they should be able to replicate the success of what other investors are doing.
Baltimore is all about your crew on the ground. If you don't have a great project manager with a solid GC, and a good property manager and know the city block by block you will fail and lose money. The majority of rentals I buy on the ground here in Baltimore City are rentals from people that lost money cause they thought they could easily make big money from far away, doesn't work like that.
@Antoine Martel Maryland is not the friendliest of landlord states
If you are going to play the Baltimore market, rentals are the way to go. I am currently mentoring 8 BP members in the rental game. Feel free to contact me and I will be glad to work with you.
I just found a property in that area for an investor that lives out of the country. I partner my investors with a company that works as the investors "boots on the ground".
I think the Baltimore market is going to continue to boom as more people look for more affordable options in the DMV area.
@Nghi Le as @Ian Barnes mentioned you really have to have a solid and I mean SOLID team. I am currently trying to help a guy from California that has 14 units, half of them are free and clear and he is losing a ton of money on them. Baltimore is a excellent market, there is a ton of opportunity for sure but being remote with out any teams and systems in place is going to make it extremely up hill.
Best of luck and keep us posted on how it works out!
I don't think I will ever invest out-of-state. I like having control over it, but if your current market doesn't help then why not :D))
However, Baltimore changes a lot, until you have trust in somebody who can work with you, then I would not recommend doing it in Baltimore.
You can end up buying something you cannot sell when in need, or over pay them if the person helping you doesn't know what they are doing.
To give you an example, I checked a complete renovation today, 45K, was curious to see what kind of investment they did, but could not even get out of my car. There are many blocks like that, and there are many nice, clean, and strong.
FInd somebody you can work with , then you will be okay.
Hi, I'm looking to invest in Baltimore too. I currently live in California. I already own a property in MD but prices are going up everywhere so Baltimore looks interesting. Are there any property managers, Realtors, or any "boots on the ground" on here? if so please message me. I'll be in MD later this month to look at properties and would love to meet someone who can help me.
-flipping advice : crowded business all of a sudden, but everyone is looking to hit home runs, be willing to accept less pretty deals and one could do well. ultimately, if you build something nice, and its priced reasonably in an area where houses are purchased by the buyers you're looking for. you'll sell it.
-rental advice : know everything about construction, baltimore city landlord/tenant law, lead paint,....before you begin.
I really appreciate all of the comments here. A lot of strong, solid advice. I lost out on the current deal that I was looking at. I'm currently investing in Indiana and Pennsylvania. The most important thing to me is the person on the ground. I care more about the seller of a deal than the deal itself; I want a long-term relationship. It's going to take me some time to research the Baltimore market, same as the other markets I had invested in. And still trying to balance a W2 job and managing flips here locally, so it might take me a while to get there. But when I'm ready, I know who I can reach out to.
Thank you all again!
Originally posted by @Amit Kumar :
@Antoine Martel I see that you invest out of state. Is there anything specific you would recommend to ensure you find good team to work with? I've been considering out of state but there is a lot less control which concerns me
That makes sense.
Connect with me and lets chat sometime this week.
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