Considering buying a small single family home in Dundalk area off Wise Ave for long term rental,possible flip...Any rent restrictions or other issues I should be aware of in that area?ROI numbers seem not bad and area itself seems also nice (went to see it)
Flipper/Rehabber · Baltimore, MD · Member since 2018 · 265 posts · 387 votes
8y
Hey! Dundalk is right in my back yard. I'm over in Essex currently. As far as a demand for SFH rentals - I don't see many homes staying unrented for long. I'm not as familiar with that particular section but know of the street it's near. Dundalk and Essex in general, are not great neighborhoods but they certainly aren't "war zones." Feel free to shoot over a block number/address and I can give maybe give you some more input on it from a resident/new investor point of view. I've lived in Essex for 8-9 years now and it's really being hit heavy with flippers improving the SFHs - so that might be the best route to take. Same time, there is a relatively high demand for rentals/low-income housing (given the number of apartment buildings, mobile homes, and rowhomes/SFHs being rented.
Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes
8y
Hello and welcome here Sam! I would recommend a Fix and Flip over a single family unit unless there is much demand for it in that area or what kind of financing you are counting on. Special financing, demand, or growth in that area are all necessary to rent it out but it is still very risky. The more units you acquire, the better. One choice is long term ideally while the other choice is short term. Before you decide, check local law that may not allow rentals in that area.
If rentals re in your future learn how to raise money and forming Partnerships. The ideal investment in this economy is purchasing apartments but they typically, if done right, they will have positive cash flow every month. When you form a Partnership the best type keeps you in control and makes all Partners involvement and ownership variable.
When you purchase them, at least 32 units will enable you to hire a Property Management Company and do the daily operations. Start small and work your way up. Remember that the more units you have, the less painful vacancies are. This is a numbers game. The more offers you make the more deals will become yours. The price is not as important than positive cash flow and have it on day 1 of ownership.
It is better if it's an add-value property. This is where the cap rate is important. They're usually more like bang in the buck. If you have heard that buying apartments takes experience is a myth.
Flipper/Rehabber · Baltimore, MD · Member since 2018 · 265 posts · 387 votes
8y
Hey! Dundalk is right in my back yard. I'm over in Essex currently. As far as a demand for SFH rentals - I don't see many homes staying unrented for long. I'm not as familiar with that particular section but know of the street it's near. Dundalk and Essex in general, are not great neighborhoods but they certainly aren't "war zones." Feel free to shoot over a block number/address and I can give maybe give you some more input on it from a resident/new investor point of view. I've lived in Essex for 8-9 years now and it's really being hit heavy with flippers improving the SFHs - so that might be the best route to take. Same time, there is a relatively high demand for rentals/low-income housing (given the number of apartment buildings, mobile homes, and rowhomes/SFHs being rented.
Baltimore, MD · Member since 2018 · 1 post · 0 votes
8y
Hi! I actually just purchased a new construction townhouse in Dundalk last year (near Cove Road, not too far from Wise actually). Now that I know wayyy more about real estate I am kind of regretting it. I do remember signing a form (I can't remember the specific form number- although I probably should) during the closing process that basically stated that the county gov't is trying to reinvest in the area, new shopping, bring in higher incomes, etc. So that made me feel good, hoping that I can pull some equity out of it in a few years, and then rent it. Does that sound like a good idea to anyone? Any thoughts or comments are greatly appreciated!
A part of me wishes to go back to a modest apartment and just pocket the money saved to invest in real estate, but I feel like now that I already have a house, it's much smarted to keep it as an asset now.