First time Flipping in Baltimore, MD

14 Replies

Hi,

I finished my first rehab in Baltimore, MD and the house has been on the market for almost 3 months.

I have a real estate agent that does not usually work in Baltimore, and I think that is my mistake.

We have lowered the price a few times now and real estate agent listed the house everywhere online but is just waiting for calls to come in and doing anything active to sell.

Is this normal time to be sitting on a house?

Does anyone have any advise?

Thanks

No Roz it shouldn't be sitting 3 months, especially over the summer.  Where is the house?  Has the house been properly registered with the city or county?  I'd give them an ultimatum to start producing or explore other avenues to get it leased to decent tenants.

Ive heard this story so many times from first time flippers in Baltimore.  Every time Ive gone to look at a place like this, Ive found the property to be overpriced, and usually, have certain deficiencies with the property that were overlooked, and with the quality of the renovation. Obviously I dont know if thats the case with yours, but after 100 times of hearing the same thing over the years, I certainly wouldnt be shocked. 

I dont think it is just about the agent on this market. I put a house on the market, I did not put a sign, I did one open house and got 14 offers in 3 days.

As an agent I did minimal, just priced it well, but  as an investor I picked the location, I did the renovation.

I am looking at your house and the area, I am kinda surprised.

Your reno is fine, but you priced it at 174K on chase street with 2 bedroom 1 bath with  semi finished basement. 

On or around chase, I saw only one house sold for 118K, for last 8 months, and that one even sat on on the market for 5 months and your agent or you priced your house at 174K then cut it 60K  which  is absurd.

Your agent made a mistake when she agreed to list it on that price.

You either have to lower the price and cut your loses or rent it. 

You can take it off market and priced it right where it should be and start over. Otherwise, it is not gonna sell even if you change your agent.

Hi Roz.  


I used to work a lot in that neighborhood.  That very block and a few others within a quarter mike radius.  Its definitely d grade.  I no longer work there and won't go back.  I hate to tell you this but you won't get reliable pm there.  The agent might not feel safe though in daytime they should.  Getting tenants that are decent is a crap shoot you will most likely get ok but if you dont they can be a nightmare and wreck any profit from previous ones.  I dont think resale is good bc there will be a waive or foreclosures in neighborhoods like that as many landlords will default as there tenants will stop paying as rent court a just resumed and they could get 5 plus months behind without recourse and dont have the whole balance from before.

Have you thought about cutting your losses.  You could get the right tenant but its sifting through no one above 600 credit scores and picking the best one.  Think about someone who has to take public trans and the area and reason why the applicants werent looking in better areas.  Answer is most likely they were rejected.  Think about why

It is a quiet block.  Dealing happens at the corner with lakewood but a lot more a street up on biddle.  Maybe a car murder a few years back on the block but in that area of Baltimore its part of life.

I know this is all bad news.  Hope it all works for you.  Good luck.

It is hard to troubleshoot the issues with the limited info given.

What are the comps? How much ddid you offer?

What work did you do? Does the work done in your flip match the finishes of other houses being sold on the market currently?

Did you use personal taste finishes?

How many offers have to received? and how many walktrhoughs?

How much interest?

Look into all that before pointing fingers at the agent.

The obvious issue here is that it is overpriced. The asking price does not justify the house.

WHY is the question, and for us to help you we would need to know those details.

Apologize about misreading this as a buy and hold and not a flip.  


Its overpriced though.  Cut your losses.  Sell at less than 100k if you have to.  Meanwhile get simple safe or adt in it so squatters dont break in.   

Get out before a foreclosure waive hits.  I think covid will crush D grade real estate especially in tenant friendly Baltimore. Its a tenant dominated area wherecmany havrnt been paying since covid bc they couldnt get evicted.  Its better sell at 100 or slightly less that 70k or 80k 6 months later.  Look at legit comps not the stuff next to the main hospital where the whole neighborhood has been upgraded.  The stuff in the immediate vicinity are the real comps.

The house is really beatiful.  You did a great job.  Its a shame no one helped you with comps before you bought it.

Good luck again.

@RozPalas Have you considered Section 8? Having lived in the same area about a mile south from that property, I remember there being quite a few Section 8 houses crossing north over E Baltimore Street. I remember a lot of rehabbers coming in and doing flips all in the southern region between Broadway and Highland Ave (Canton, Fells Point, Highlandtown)

Baltimore REAs, correct me if I'm wrong. It's been a few years. 

Section 8 won't rent in that neighborhood.   Its too horible.  They can be selective.  Another reason to ask people local with leasing experience.  It is a beatiful house.  If it was in a little better of an area like Belair Edison atleast  a half block off of Belair Rd  I would say go for it  but that is clearly a grade down.

@Tim Jacob no disrespect...although I am a South Florida resident I was born and bred in Baltimore and if memory serves there were vouchers given in and around that block...2739 E Chase to be exact. Perhaps they are more selective now...

Yes, I'm new to RE and don't have leasing under my belt...was just trying to be helpful as someone that has lived in Highlandtown and have known people renting through section 8 in that area.

Ok no disrespect either.  I think a while back things were different.  The voucher holders have more options today than they did before.  Also a while back though crime was bad I dont think it was quite what it has been since 2015.  Highlandtown has gotten better  and it borders Canton which helps but this is north of there and well north of Patterson park.  Also this area is too far east of the main hospital. 


I think it is important than many people think the answer to d grade rentals is section 8 is go to your local section 8 office or ask local pms or agents with a lot of pm expereince if section 8 is even feasible.  Before I was in this a long enough time I would think that.  There might be areas wherethat isthe case but Baltimore is not one of them.  I think the people who do best in section 8 buy in a little better neighborhood and do a great reno like Roz Palas did and maximize the bedrooms.

@Roz Palas

3 months in this market is an eternity! Most homes that are in good shape and priced appropriately are getting into bidding wars.

Mind sharing the address? I’m a realtor and can check out some comps for you. DM me

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