Rental Properties in Baltimore in the $1k to $1.5k range

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Rental Properties in Baltimore in the $1k to $1.5k range

David Roberts
Washington, DC · Member since 2016 · 10 posts · 1 vote

I am looking to invest in single family homes in Baltimore and trying to get a sense for the type of homes that rent for $1000 to $1500 range.  Looking to buy homes in the $75k to $125k range. I really need to develop a better sense for the what houses achieve certain rates. I'm looking at Zillow and Craigslist to have a idea but would like to put a picture to an actual rental value.  Any advice or examples that anyone can give?  Either actual examples or profiles (neighborhood/#beds/general condition/access to amenities/etc) would be great. And if there are other sources of data that I'm missing. I'm planning to tour neighborhoods during week of thanksgiving.  thank you

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Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
8y

There are lots of neighborhoods that sell in that price range.  Yale Height/Beechfield, the better parts of Belair Edison or Edmondson village, much of 21234 or 21239

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  • Christopher Haynes
    Investor · Baltimore, MD · Member since 2015 · 71 posts · 24 votes
    8y
    Are you looking to purchase rent ready or are you looking to do a rehab
    1Reply
  • David Roberts
    OP
    Washington, DC · Member since 2016 · 10 posts · 1 vote
    8y

    Hi Christopher, I'm looking to put in $10 to $20k depending on condition. These would be mainly cosmetic upgrades.

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  • Ray Johnson
    Irvine, CA · Member since 2016 · 545 posts · 614 votes
    8y
    @David Roberts With the metrics you've listed, you're better off going with properties in the lower-end of Northeast, DC maybe Deanwood or near that area, I've looked at Baltimore in that price range and the rents are better in DC when dealing with the same class of property and/or renters. If you're stuck on Maryland, the neighborhoods just outside of DC will produce similar results.
    2Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    8y

    @David Roberts in the purchase price range you mention, in Baltimore city just about any property will hit your rent range. A 3 bedroom property in very nice condition can command $1,000 rent from section 8 in just about any neighborhood.  In a $125 K neighborhood, You can get close to the top of your range.

    2Reply
  • Christopher Haynes
    Investor · Baltimore, MD · Member since 2015 · 71 posts · 24 votes
    8y
    Well then I probably would suggest cedonia , belair Edison, Gwynn oak garwynn oaks ,waverly those are decent areas you can get properties in those areas rent ready for those prices , I just sold a light rehab I completed for 120k in bel air Edison and they have it rented for 1550 with an A class tenants so it cash flows for him and it was 100 percent rent ready for him . I'm working on another one as well. I usually suggest tho always go for a minimum of 3/2 (half baths are ok as well tho) finished basement as well. That always gets me 1000. Try to stay away from Patterson park canton and fells point . They are great a1 areas but are hard to cash flow because of high prices
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  • David Roberts
    OP
    Washington, DC · Member since 2016 · 10 posts · 1 vote
    8y

    @Ned Carey thanks for the response.  That is validating what I am seeing.  It's good to hear that that syncs up with your experience.  What would you consider a $125k neighborhood?

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  • David Roberts
    OP
    Washington, DC · Member since 2016 · 10 posts · 1 vote
    8y

    @Christopher Haynes Thanks Christopher.  That is great feedback on the housing features.  Just the kind of information that I was looking for.  Thanks for the submarket info too!  Really helpful to hear from those that have more experience in the city.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    8y
    David Roberts I invest in notes and have some deals in Baltimore but cannot solicit so send me a PM to learn more
    7e investments53 Reviews
    WebsiteView Page
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  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    8y

    There are lots of neighborhoods that sell in that price range.  Yale Height/Beechfield, the better parts of Belair Edison or Edmondson village, much of 21234 or 21239

    3Reply
  • David Roberts
    OP
    Washington, DC · Member since 2016 · 10 posts · 1 vote
    8y

    Thanks, Ned.  This is very helpful.

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  • Nicole B.
    Real Estate Agent · Baltimore, MD · Member since 2016 · 142 posts · 75 votes
    8y

    @Ned Carey is correct that there are many properties in that price range that will rent for at least 1k.  My advice is to visit the neighborhoods AND walk properties.  That way, you get a true sense of the value on the outside and inside.  You probably already know this, but make sure you're looking at what price properties have "rented" for, not just what they're listed as.  

    1Reply
  • David Roberts
    OP
    Washington, DC · Member since 2016 · 10 posts · 1 vote
    8y

    Thanks, Nicole.  Yes, that was the plan. I was going to visit a few properties.

    You're comment about what properties have "rented for" is exactly what i'm getting at.  Outside of asking owners or property management companies what they are renting their properties for, is there any source to validate actual rents?  The only sources I have are just list prices - Zillow/Craigslist/Trulia.  Would appreciate any insights you have.

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  • Michael Giuffre
    Rental Property Investor · Raleigh, NC · Member since 2015 · 51 posts · 15 votes
    8y

    @Nicole B. Besides trying to find a realtor/agent to provide rental comps, is there a good method you use to research realistic rental rates for areas?  Obviously all the rental listings on Rentometer.com, Zillow, Hotpads, etc. are all "asking" rates.  I would love to know if there is anything better we, as investors, can use.  Thanks in advance!

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  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    8y

    @David Roberts

    David,

    I wanted to chime in and see if you found anything yet?

    If Baltimore is where you want to go, try the 21214, 21206 and 21234 corridor.  Less crime than BelAir Edison/Frankford Ave area.  Shoot up toward Parkville, Carney, Fullerton, Rosedale, Kenwood just outside the city in the county.  Taxes are cheaper, schools are better and rents are higher providing a higher margin.

    Best of luck

    Stephanie

    1Reply
  • David Roberts
    OP
    Washington, DC · Member since 2016 · 10 posts · 1 vote
    8y

    Thanks @Stephanie P..  

    I did a tour last weekend of Belair-Edison and 21234.  From what I could tell the rents seemed to be similar $1400-1600.  I talked to a RE agent at an open house in Belair-Edison and she independently verified that rent range for a row house in that neighborhood.  The asking rents that I saw in 21234 seemed similar but I'm basing that on limited information.   

    In general, what do you see for rent in the zip codes you mentioned (assume that the house is in good shape / 3-4 bedrooms)?  And also, what do you see for current value of these homes (assume they need a little work - $15-20k - to get them into good shape)?

    I would much rather purchase a house in the outlying zip codes.  That's great to know about the taxes and schools.  I didn't factor the reduction in taxes for my cashflow analysis.

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  • Levi T.Pro Member
    Rental Property Investor · Tucson AZ / Nice FR / Washington DC · Member since 2016 · 1k+ posts · 1k+ votes
    8y
    Originally posted by @David Roberts:

    Thanks @Stephanie P..  

    I did a tour last weekend of Belair-Edison and 21234.  From what I could tell the rents seemed to be similar $1400-1600.  I talked to a RE agent at an open house in Belair-Edison and she independently verified that rent range for a row house in that neighborhood.  The asking rents that I saw in 21234 seemed similar but I'm basing that on limited information.   

    In general, what do you see for rent in the zip codes you mentioned (assume that the house is in good shape / 3-4 bedrooms)?  And also, what do you see for current value of these homes (assume they need a little work - $15-20k - to get them into good shape)?

    I would much rather purchase a house in the outlying zip codes.  That's great to know about the taxes and schools.  I didn't factor the reduction in taxes for my cashflow analysis.

     Have you through of jumping on somewhere like Zillow, or Rentometer, and seeing what things are listed for? In terms of range and area your talking about own, type of homes or hoods, you can easily tell from these platforms just using simple sampling method with your eyeballs what the range is. Virginia has the same pricing range in NOVA, I do this very type of sampling on pricing and rents all the time. If you have 6 row homes listed for 1.3k in a sub 1 mile radios, rents are highly likely going to be within that range by $100 more or less..

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  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    8y

    @David Roberts

    We just got an appraisal for a refinance (no seasoning of title by the way) of a property off of Glen Arm close to Glenmore and Bel Air Rd in the 21206 zip that was a four unit (1br/1ba each unit) bringing in 2350 per month.  The value on the property was 189,000.  

    The reason I bring up those zips vs. Bel Air/Edison is board ups, crime and again the cost of taxes and insurance in the city.  Yes, there are some great buys in that area, but to me, the risk/reward ratio is too high.

    Start driving south from Joppa Rd on Harford Rd and to me, the whole tenor of the neighborhoods change at around Moravia Rd. and certainly by the time you get to Argonne Dr.  That's when the board ups along Harford Ave at that point begin.  You don't see the significant blight in 21206, 21214 or 21234 that's prevalent in Bel Air Edison and because of that, you'll get a better quality tenant.

    https://www.google.com/maps/place/Belair+-+Edison,...

    2Reply
  • David Roberts
    OP
    Washington, DC · Member since 2016 · 10 posts · 1 vote
    8y

    Great insights, Stephanie.  That makes perfect sense.  On the surface it may seem like the same in terms of rental income but when you factor in vacancy and repair costs (due to lower quality tenant), and then add the higher tax rate, there is probably a noticeable difference to the bottom line.  

    Given that I work full time, the time intensiveness to manage a property is a significant factor.

    0Reply
  • David Roberts
    OP
    Washington, DC · Member since 2016 · 10 posts · 1 vote
    8y

    Thanks, @Levi T.  Yes, I use Zillow to check rents all the time.  I agree that it provides a good indication of the asking rents in a given area.  And so far, the rents for the areas that I have checked seem to be pretty close to actual rents.  That being said, it is always good to validate with other investors and RE agents.  I will check out Rentometer.  Thanks for the advice.

    0Reply
  • Nicole B.
    Real Estate Agent · Baltimore, MD · Member since 2016 · 142 posts · 75 votes
    8y
    Originally posted by @Michael Giuffre:

    @Nicole B. Besides trying to find a realtor/agent to provide rental comps, is there a good method you use to research realistic rental rates for areas?  Obviously all the rental listings on Rentometer.com, Zillow, Hotpads, etc. are all "asking" rates.  I would love to know if there is anything better we, as investors, can use.  Thanks in advance!

    I use MRIS for rental comps, but I understand not everyone has access.  When I listed my apartment for rent, I just used Craigslist, figuring I would want to be competitive with what was listed at the time and I didn't have access to MRIS then.  I tend to stay on the low rental side because I prefer quality over quantity.  My tenant is a professor at Loyola with 850 credit score and she moved in the same week I listed.

    It's a shame Zillow doesn't also provide "rented" listings, like they do with "sold" listings.

    1Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    8y

    @David Roberts the reason the rents in 21234 were not much higher than in Belair Edison is because rents across the city do not vary as much as the quality of neighborhood.  

    To some degree this is true just about everywhere across the country.  Generally the rent to price ratio is higher in a $150 neighborhood vs a 300K neighborhood. The $300K neighborhood is in turn a better ratio that a $500K-600K+ area.

    However in Baltimore city this is more exaggerated.  Rents really aren't much higher in any row house neighborhood than another except in the extremes (IE:from War Zone to A+ areas).

    0Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    8y

    I look at the numbers  people are getting for rent on Balto homes , and then I compare them to what I get on mine in Pasadena , ( south of Balto ) . The rents are not that much different , BUT , the property taxes are less , the schools are better , the chance of appreciation is greater . The houses do cost more than Balto city . Evicting a tenant is easier . I know some guys that make killer money in the city , but they say the headaches are non stop

    1Reply
  • David Fernandez
    Real Estate Agent · Vienna, VA · Member since 2016 · 289 posts · 253 votes
    8y

    @David Roberts, we have one row home in Belair-Edison rented for $1,250/month (market tenant). It has 3 bedrooms (1 in the basement), 1.5 baths, finished basement, and it was fully remodeled before placing the tenant. 

    We found out most properties similar in size/layout to ours were listed between $1,050 (dated and a little run down) and $1,350 (necently remodeled with nice finishes). 

    As many have mentioned, you can hit your rent goal in pretty much any area in Baltimore for a 3 BR home. Select a few areas, drive around them as much as you can, and see what you like/dislike about each of them. 

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  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    8y

    @Matthew Paul what is a typical rental costing you all in after repairs?

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  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    8y
    Originally posted by @Ned Carey:

    @Matthew Paul what is a typical rental costing you all in after repairs?

    All in , I am at about $ 150,000 to 170,000 .   On a sfh around 1000 sq ft .   I only buy properties that I would live in with my family , size and location . 

     I am closing on one next month , a small 2 bedroom in Pasadena , great schools , real nice neighborhood ( homes avg $200k ) 1/3 acre . House has new roof , windows and HVAC . All I need to do is paint and some minor repairs upstairs , strip out some shelves and odds and ends in the unfinished basement and paint walls ceiling and floor . Maybe 3 weeks of work with 1 or 2 guys not rushing . maybe one or 2 thousand to get it ready . 

    And as i type I get a call about a tree that just fell on one of my rentals , so back to work 

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