Seeking investment advise for a deal in Waldorf, MD

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Seeking investment advise for a deal in Waldorf, MD

Tihomir Cheresharski
IT Consultant · Sterling, VA · Member since 2015 · 2 posts · 0 votes

Hi there, I am new to biggerpockets, and pretty much new to real estate investment. I am considering making my first buy-and-hold and I am thinking about Waldorf, MD. The reason is very simple - relatively low mortgage payments compared to what I could get from rent, which should result in a positive monthly cash flow. The thing that I am hesitant about is the fact that Waldorf isn't the best area and I am not sure if it's a good investment. I am open to any advise and your opinion will be much appreciated. Thanks!

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  • Mark Nolan
    Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    11y

    @Tihomir Cheresharski

    Welcome to Bigger Pockets. BP is full of resources. You will find resources here from blogs to pod casts and forums. You can also send messages to members. This is one of my favorite features of Bigger Pockets especially for asking specific questions.

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  • Vinny MaidaPro Member
    Flipper/Rehabber · Arnold, MD · Member since 2011 · 34 posts · 11 votes
    11y

    Welcome to BP @Tihomir Cheresharski! Glad to hear you are looking at numbers and neighborhoods. There are normally good and bad areas in every city/town to invest in.  Key is to know which is which. For example:  In Baltimore city 1 block can mean $50k plus difference in price.   

    You have about a 1.5 hour commute to your area of investing. Have you thought through the time you'd need to market, look at property, show property and maintain your properties?  The distance isn't a disqualifier. Just want to note the challenges with distance, especially for newer investors.   I have had rentals 2 hours from me. The distance introduces additional challenges. Will you use local Realtors and property managers or go it alone?  

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    11y

    @Tihomir Cheresharski What type of numbers are you looking at on the Waldorf house?

    Whatever they are, I think you are likely to find pretty similar numbers in a much better area not too far from there such as Bowie, Hyattsville, Mt Ranier, Ft Washington....even a little further away in Laurel MD.

    It all sort of depends though on your investment criteria though...whether you are seeking cash flow, appreciation, single family, condos, townhouses etc.

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  • Brad Chandler
    Wholesaler And Coach · Springfield, VA · Member since 2011 · 169 posts · 75 votes
    11y

    We have bought many fix and flip properties in Waldorf over the years. I think the rental yields would be good there. I would focus on the better neighborhoods. Good luck!

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  • Tihomir Cheresharski
    OP
    IT Consultant · Sterling, VA · Member since 2015 · 2 posts · 0 votes
    11y

    Thank you guys very much for the feedback. 

    Vinny - I am considering using the services of a property management company if I buy in Waldorf. It's indeed a bit far, and with a full time day job, I won't have much time to make trips to Southern MD.  

    Russel - I am considering better areas as well. Even if mortgage to rent margin isn't as big, may be that option is better for the long term in terms of building equity. 

    In general, what do you guys consider an acceptable yearly rate of return on a buy-and-hold property? And what do you throw into the formula - cash flow, loan amortization, annual appreciation, etc?   

    Thanks!

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