Rental Property Investor · Washington, DC · Member since 2019 · 13 posts · 2 votes
Hey all,
I have been researching a few (actually a ton of) markets to start my BRRRR portfolio after stalking BP for a while and cranking thru David Greene's book on BRRRR. Ideally, I'm targeting markets where I can get my feet wet on my first few BRRRR's in the sub $200k (purchase price) range before going bigger. I am a cash buyer and not reliant on mortgage approved properties.
Like I said, I have done the research but am curious to know from the BP community, any recommendations based on recent experience. So many articles out there on different markets but i also need to take into account areas that I can build a team (Core Four).
Real Estate Agent · Baltimore, MD · Member since 2016 · 520 posts · 379 votes
5y
For less than a 200k purchase price you can get into some A grade listings in Baltimore. There are tax programs to enhance appraisals in the city. If you go to nicer parts of the county you could get the same quality tenant you could in many of the DC suburbs. If you go to the city you could buy in nice areas brrr out your money because the spread is there and rent to young professionals by the room. In both cases maintenance and vacancy will be really low. All the stigmas with Baltimire are true but not everywhere is bad just go to the good parts and avoid the problems people complain about on here.
Like others said since its not turnkey investing driving distance is key. Its really why Baltimore is a great choice for you. Especially at your price point.
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
5y
@Del Crockett, while I don't have any specific areas to recommend (you can find good deals in many areas of the country), I would recommend that you try to settle on a place that is easy to get to (direct flight or easily driveable) and ideally have some ties to.
One or both of these simply make it easier to visit when you need to. While I don't invest directly out of state, the couple investors I know that do first hand visit their properties 2-4 times per year, so making it easy to get to and/or a trip you can combine with pleasure makes it that much easier to do it.
Rental Property Investor · Washington, DC · Member since 2019 · 13 posts · 2 votes
5y
Thanks @Evan Polaski - funny enough, Cinci was one of the market I looked a lot at recently.Yeah I agree with your feedback and have received similar suggestions from some local investors. Baltimore is near by and probably the way I will start out the BRRRR portfolio for the reasons you mentioned.
Do you have any special areas in Baltimore that you looking forward to investing?
Back in late may 2020 my wife and I acquired one vacation rental around Orlando area that I used to do rental arbitrage (airbnb) and we about to acquire one property in federal hills Baltimore (we live here in fed hills) to househack or just live for 1 year, acquire another property and rent out the previous unit.
Baltimore has a lot of different options to invest in, the first thing you need to know what kinda of property are you looking forward to invest, rowhome, condo (I personally don't like condos in Baltimore), what kinda of neighborhood are you willing to invest as well.
I personally like a lot of federal hills, it has a lot to offer.
Real Estate Agent · Baltimore, MD · Member since 2016 · 520 posts · 379 votes
5y
For less than a 200k purchase price you can get into some A grade listings in Baltimore. There are tax programs to enhance appraisals in the city. If you go to nicer parts of the county you could get the same quality tenant you could in many of the DC suburbs. If you go to the city you could buy in nice areas brrr out your money because the spread is there and rent to young professionals by the room. In both cases maintenance and vacancy will be really low. All the stigmas with Baltimire are true but not everywhere is bad just go to the good parts and avoid the problems people complain about on here.
Like others said since its not turnkey investing driving distance is key. Its really why Baltimore is a great choice for you. Especially at your price point.