First time investor in Baltimore

[Harry Carter]

Hello everyone.  Purchasing my first buy and hold rental in Baltimore this month.  After running the numbers, it looks like it should cashflow:

Cost of purchase: 60k

Down payment: 9K

Fully renovated so no costs for repairs

Rents are looking between $750-$900 month

Estimated cash flow = $400-$500 a month

Will begin looking for renters 2 weeks before closing.

If anyone has any advise or tips for Baltimore city investing, I'd love to hear them.  Also, what are your thoughts on purchasing houses at auction?  I've seen so many low cost auctions going on, and definitely see there are some significant rehabs to be done.  Not sure how to calculate rehab costs and find a contractor who can deliver within budget.  

Thanks,

Harry

[Stephen Kehoe]

Hey Harry,

In your cash flow calc have you included PITI, vacancy, maintenance, capital expenditure? Do you plan to use property management? If so it may be hard to get someone for a 60k property.