Investing in Frederick MD

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Investing in Frederick MD

Christian Sifuentes

Flipper/Rehabber · Fair Lawn NJ · Member since 2016 · 382 posts · 87 votes

Any suggestions on locations for flips in Frederick? Thanks

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Russell BrazilBusiness Member

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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

10y

Thanks for the tag @Ned Carey.

@Christian Sifuentes I would be focusing on downtown Frederick for flips. Not that is a very general area to focus, and it will change block by block. For instance the block of 7th Street east of Market Street, while that is downtown, I do not think that is a good block to flip. I think it would be an ok block for a buy and hold, but that block does not have the ...not sure how to say it...the beauty of some of the other blocks, thus will not draw the higher prices some of the other blocks will draw.

One thing though to be aware of is where the historical district boundaries are. Im not against flipping inside the boundaries, but just be aware if you are using hard money that inside those boundaries you could be stuck holding the property for longer if the exterior of the property needs work. You actually see a number of flips on the streets just north and south of the historical district boundaries as some people just do not want to deal with them.

The other thing to be aware of as well down there is to make sure you can properly comp the property. I saw one flipper who did two flips fairly recently...one Im almost positive they lost money, and the other they may have as well (or barely turned a profit) because they did not know how to properly determine their ARV. Just as an example on one of them...they way over improved the property for the price point, and they also did not factor in the fact that this property did not have a yard...and Frederick is a very dog friendly city...so not having that yard really brought down the value. Also be aware of the square footage of the properties, as there can be a pretty large variance...also be aware of the styles as for instance a victorian rowhouse will likely have a higher arv than a federal style row house.

There are other parts of Frederick you could probably flip in, but the smaller size of these downtown rowhouses really helps to cap your repair expenses since there is only so much you can spend in those small things. Once you move further away from downtown, the properties get much larger, and the inexperienced could easily under estimate the repair costs in those.

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Ned CareyPro Member
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Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
10y
Search for @Russell Brazil here on the forums. He is a very experienced agent who is familiar with Frederick. You might also check out the Gaithersburg Meetup. Some of the Frederick investors come down to that one.
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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
10y
Thanks for the tag @Ned Carey.
@Christian Sifuentes I would be focusing on downtown Frederick for flips. Not that is a very general area to focus, and it will change block by block. For instance the block of 7th Street east of Market Street, while that is downtown, I do not think that is a good block to flip. I think it would be an ok block for a buy and hold, but that block does not have the ...not sure how to say it...the beauty of some of the other blocks, thus will not draw the higher prices some of the other blocks will draw.
One thing though to be aware of is where the historical district boundaries are. Im not against flipping inside the boundaries, but just be aware if you are using hard money that inside those boundaries you could be stuck holding the property for longer if the exterior of the property needs work. You actually see a number of flips on the streets just north and south of the historical district boundaries as some people just do not want to deal with them.
The other thing to be aware of as well down there is to make sure you can properly comp the property. I saw one flipper who did two flips fairly recently...one Im almost positive they lost money, and the other they may have as well (or barely turned a profit) because they did not know how to properly determine their ARV. Just as an example on one of them...they way over improved the property for the price point, and they also did not factor in the fact that this property did not have a yard...and Frederick is a very dog friendly city...so not having that yard really brought down the value. Also be aware of the square footage of the properties, as there can be a pretty large variance...also be aware of the styles as for instance a victorian rowhouse will likely have a higher arv than a federal style row house.
There are other parts of Frederick you could probably flip in, but the smaller size of these downtown rowhouses really helps to cap your repair expenses since there is only so much you can spend in those small things. Once you move further away from downtown, the properties get much larger, and the inexperienced could easily under estimate the repair costs in those.
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Christian Sifuentes
OP
Flipper/Rehabber · Fair Lawn NJ · Member since 2016 · 382 posts · 87 votes
10y
Originally posted by @Russell Brazil:

Thanks for the tag @Ned Carey.
@Christian Sifuentes I would be focusing on downtown Frederick for flips. Not that is a very general area to focus, and it will change block by block. For instance the block of 7th Street east of Market Street, while that is downtown, I do not think that is a good block to flip. I think it would be an ok block for a buy and hold, but that block does not have the ...not sure how to say it...the beauty of some of the other blocks, thus will not draw the higher prices some of the other blocks will draw.
One thing though to be aware of is where the historical district boundaries are. Im not against flipping inside the boundaries, but just be aware if you are using hard money that inside those boundaries you could be stuck holding the property for longer if the exterior of the property needs work. You actually see a number of flips on the streets just north and south of the historical district boundaries as some people just do not want to deal with them.
The other thing to be aware of as well down there is to make sure you can properly comp the property. I saw one flipper who did two flips fairly recently...one Im almost positive they lost money, and the other they may have as well (or barely turned a profit) because they did not know how to properly determine their ARV. Just as an example on one of them...they way over improved the property for the price point, and they also did not factor in the fact that this property did not have a yard...and Frederick is a very dog friendly city...so not having that yard really brought down the value. Also be aware of the square footage of the properties, as there can be a pretty large variance...also be aware of the styles as for instance a victorian rowhouse will likely have a higher arv than a federal style row house.
There are other parts of Frederick you could probably flip in, but the smaller size of these downtown rowhouses really helps to cap your repair expenses since there is only so much you can spend in those small things. Once you move further away from downtown, the properties get much larger, and the inexperienced could easily under estimate the repair costs in those.
I really appreciate the feedback will be taking notes this weekend as i drive around.
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Mike Webb
Real Estate Investor · Hagerstown, MD · Member since 2013 · 276 posts · 107 votes
10y
We have a 2 unit (over under duplex) just off Market St we are selling as a flip. One unit is occupied on a month-to-month lease. This is All Saints almost on the corner of Court St. We have plans, scope and budget prepared that conveys. Selling for 165,000
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Christian Sifuentes
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Flipper/Rehabber · Fair Lawn NJ · Member since 2016 · 382 posts · 87 votes
10y
Anyone have any feedback on Amber Meadows town home development in Frederick in front of Fort Detrick? Looking at a couple properties in that area.
Thanks
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Trey Williams
Realtor And Investor · Frederick, MD · Member since 2011 · 68 posts · 30 votes
10y
Amber Meadows is a good neighborhood. B- or B/C- but still good to best describe it. Its across from Ft Detrick Army base so you get the consistent rentals from the off base population. It has close access to highway exits, schools and many doctors . The city also has great schools above par in Maryland which are best in the country. The deals on market seem thin in that neighborhood so there is some work to be put in. Contact me if your in the area
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Christian Sifuentes
OP
Flipper/Rehabber · Fair Lawn NJ · Member since 2016 · 382 posts · 87 votes
10y
Any feedback on N Bentz road in Frederick? Looking at a couple of SFH row home for flips?? Thanks
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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
10y
Originally posted by @Christian Sifuentes:

Any feedback on N Bentz road in Frederick? Looking at a couple of SFH row home for flips??
Thanks
Bentz is a long street. Some blocks better than others. You can flip houses on Bentz though, just make sure you buy at the right price and know your arv.
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Christian Sifuentes
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Flipper/Rehabber · Fair Lawn NJ · Member since 2016 · 382 posts · 87 votes
10y
thanks it's 412 and the other one in 500# that we are looking at. Low 100k is price, arv is anywhere from 170-205k from the comps I have seen.
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Sabrina Savinski
Rental Property Investor · Leominster, MA · Member since 2016 · 15 posts · 0 votes
10y
We're looking at a townhouse in Frederick for buy and hold rental investment. Does anyone have a property manager they recommend? Also wondering what vacancy rates are like in the area. The neighborhood we're looking in is Hillcrest in a community right next to the elementary school. It's a 3 bed, 1.5 bath with a good sized fenced in yard.
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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
10y
Originally posted by @Sabrina Savinski:

We're looking at a townhouse in Frederick for buy and hold rental investment. Does anyone have a property manager they recommend? Also wondering what vacancy rates are like in the area. The neighborhood we're looking in is Hillcrest in a community right next to the elementary school. It's a 3 bed, 1.5 bath with a good sized fenced in yard.
1.5 baths is functionally obsolete. I'd consider a different property unless you plan on adding a bathroom.
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Mike Webb
Real Estate Investor · Hagerstown, MD · Member since 2013 · 276 posts · 107 votes
10y
Sabrina Savinski - Hillcrest is an area that has a stigma, FYI. Not sure how familiar you are with Frederick but just wanted to throw that out there. With that said, it commands a decent rent for what you can get a property for. There is a strong push through the Golden Mile Alliance to re-develop the West End of Frederick (where Hillcrest is located). Most recently, WAL MART just pulled the plug on their plans to build a store on the site of the Fredericktowne Mall. This has left some of the plans of "change" in that corridor in limbo. If you have any specific questions I would be happy to try and help. Mike
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Christian Sifuentes
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Flipper/Rehabber · Fair Lawn NJ · Member since 2016 · 382 posts · 87 votes
10y
I am looking at a buy and hold off Walnut behind the I-40. 2 separate units metered and set up that way. It is a small 2/1 on each floor with nice size yard and ample parking. Any idea what rent would go for in the area?
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JR T.
Financial services executive · Frederick, MD · Member since 2015 · 609 posts · 341 votes
10y
Around $1,000 to find a qualified tenant maybe $950
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Christian Sifuentes
OP
Flipper/Rehabber · Fair Lawn NJ · Member since 2016 · 382 posts · 87 votes
10y
Thanks
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Thomas Giganti
Investor · Damascus, MD · Member since 2016 · 53 posts · 10 votes
9y
I've actually been looking into Frederick and found a townhome in the Fredericktowne village/Monocacy village area that I'd like to see. Saw this thread and was wondering how these neighborhoods are? Frederick seems to have a lot of offer with the downtown district so close, ft Dertrick close by and hood college somewhat close. Does everyone agree the rental market is good? How does vacancy rates seem? I think someone said the rent goes for anything between $1300-$1600 for a 3 bed 2 bath home? Appreciate any responses or information!
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JR T.
Financial services executive · Frederick, MD · Member since 2015 · 609 posts · 341 votes
9y
@Russell Brazil Check out 124 E 7th. Flipper bought @ 125 sold @ 293.5. Same flipper has another a few doors closer to Market St with similar economics. Both federal style row homes. It took awhile to sell because many buyers were turned off being close to the dairy. You are right that you have to know what you're looking at in comps because two identical row homes can have or lack features that make a huge difference to the user's quality of life.
@Thomas Giganti I'm not quite sure about Monocacy Village we have a lot of "Monocacies" here. The area of Fredericktowne I think you're referring to is the Key Parkway area behind the Fredericktowne Mall on Rt 40. The other side of Rt 40 is Hillcrest and that is a tough neighborhood I'd advise avoiding. The townhomes on Key Parkwy will rent $1250-1350. Keep in mind there are many large apartment complexes full of beautiful resident amenities in that neighborhood so if you want the same quality tenants you will have to price well under them. Otherwise you'll only get the people who can't qualify to live at the apartments. HOA fees can be shockingly high in that neighborhood. Neighborhoods for 3/2+ with a $1300+ rent are Crestwood Jefferson Technology, Carrollton neighborhoods.
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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y
Originally posted by @JR T.:

@Russell Brazil Check out 124 E 7th. Flipper bought @ 125 sold @ 293.5. Same flipper has another a few doors closer to Market St with similar economics. Both federal style row homes. It took awhile to sell because many buyers were turned off being close to the dairy. You are right that you have to know what you're looking at in comps because two identical row homes can have or lack features that make a huge difference to the user's quality of life.
@Thomas Giganti I'm not quite sure about Monocacy Village we have a lot of "Monocacies" here. The area of Fredericktowne I think you're referring to is the Key Parkway area behind the Fredericktowne Mall on Rt 40. The other side of Rt 40 is Hillcrest and that is a tough neighborhood I'd advise avoiding. The townhomes on Key Parkwy will rent $1250-1350. Keep in mind there are many large apartment complexes full of beautiful resident amenities in that neighborhood so if you want the same quality tenants you will have to price well under them. Otherwise you'll only get the people who can't qualify to live at the apartments. HOA fees can be shockingly high in that neighborhood. Neighborhoods for 3/2+ with a $1300+ rent are Crestwood Jefferson Technology, Carrollton neighborhoods.
I can find the property on Zillow, but I can't find it in the MLS or sdat, weird.
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JR T.
Financial services executive · Frederick, MD · Member since 2015 · 609 posts · 341 votes
9y
@Russell Brazil Search for 124 Seventh E and all will come up. Are you allowed to post links to Redfin here?
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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y
Originally posted by @JR T.:

@Russell Brazil Search for 124 Seventh E and all will come up. Are you allowed to post links to Redfin here?
Yes you can.
293,500 final sales price with a 10k seller subsidy. 15 month rehab combined with a 10 month sales period. If they were using hard money they probably lost money on this flip. A 2 year flip, that's just crazy.
I don't think the issue is the dairy plant as much as it was a property with only 1 full bath on a stretch that isn't particularly nice.
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Shaun Sullivan
Keedysville, MD · Member since 2017 · 24 posts · 10 votes
9y
@Russell Brazil @Mike Webb @JR T. @Trey Williams
Looking for areas to invest around Frederick, and came across this thread with lots of helpful info. Can any of you provide thoughts on:
1) Fredericktowne Village (not the Golden Mile mall area... the area NE of downtown, Stratford Dr, etc)
2) Country Side (off Rt 85 just north of English Muffin Way)
3) Old Farm (across Ft Detrick from Amber Meadows)
Thanks for any input.
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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y
Originally posted by @Shaun Sullivan:

@Russell Brazil @Mike Webb @JR T. @Trey Williams
Looking for areas to invest around Frederick, and came across this thread with lots of helpful info. Can any of you provide thoughts on:
1) Fredericktowne Village (not the Golden Mile mall area... the area NE of downtown, Stratford Dr, etc)
2) Country Side (off Rt 85 just north of English Muffin Way)
3) Old Farm (across Ft Detrick from Amber Meadows)
Thanks for any input.
I own 2 condos in Fredericktowne on Stratford. I rather like them. There is one development over near the Golden mile actually that I kind of like...but most of the area over there I generally dont. I have a friend that owns some condos over by Ft Dietrich....but I think they are non warrant able which means they are hard to finance. Lower tenant quality than I get over on Stratford.
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Shaun Sullivan
Keedysville, MD · Member since 2017 · 24 posts · 10 votes
9y
Thanks @Russell Brazil.
What makes the Ft Detrich area stuff hard to finance?
Thoughts on the Ballenger Creek market in general as they continue developing Westview South and the Jefferson Tech Park? I just sold my TH in Ballenger Crossing this past summer to move into SFH, so I know most of Ballenger Creek doesn't have good rent/price ratios, but it seems that little area of Cimarron/Conestoga/etc might be decent... not sure if you're familiar with it and whether you think it could benefit especially as they develop further south along Rt 85. There's a listing on Cimarron that currently has tenants and with a bit of negotiating might be able to get some positive cashflow.
Also, are there any meetups coming up in this area? Is it just the Hagerstown & Gaithersburg ones within a half hour of Frederick?
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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y
The ones by ft dietrich are non warrantable , so that makes traditional financing on them impossible. Baallenger creek is ok, but i can get better price/rent ratios in other areas with thr same appreciation potential. There is a monthly Meetup in Frederick the 2nd week of the month typically. Email @Michael Paris to get on the distribution list. It typically has about 10 people at it. I attend about every other month. The Gaithersburg Meetup has 25 to 40 people typically. That's my favorite meetup/reia in the entire dc metro area.
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Shaun Sullivan
Keedysville, MD · Member since 2017 · 24 posts · 10 votes
9y
@Russell Brazil ah, just needed to google the word "warrantable" to learn that it's a FNMA set of standards. Got it. I sent Michael an email, so I'll try to get to that one... and I'll keep an eye on the events forum for the Gaithersburg meetup. Thanks again.
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