All Forum Posts by: Andy Gross

Hey now, Baltimore is a great place to live! You have to pick your neighborhoods right but some of the best years of my life were spent in Baltimore. It's got some problems, sure, but Baltimore has some great neighborhoods, ranging from ivy-covered Georgian manors to funky, artsy rowhouses. We've got dive bars and world-renowned chefs. If I were still living there, I would gladly show you around to prove you wrong about not wanting to live there! The only reason I moved was because of a job-related transfer, and I intend on moving back in the next two years.

With that said, Baltimore appears to have a lot of investment potential.

@Jeff K. , it's an X-Ray Flouroscope. From my research, a scan will run about $400 or so, depending on the company.

Ladies/Gentlemen with Baltimore experience: How do you pick a neighborhood? I'm looking around, and Sandtown Winchester has got great prices, but is it a war zone? What about north of Patterson Park? Berea? Charm City Cash Cow is selling some stuff in Pennrose. McElderry Park? Ellwood Park? Other than looking at crime mapping websites, how do you know? Is it a function of driving the neighboorhoods and getting a feel for them, or just experience?

I ask because there is a ton of cheap property that would work on paper, but obviously that isn't the whole story. Having lived in the city, I am only really familiar with Canton, Fells, Fed Hill, Bolton Hill, Res. Hill and the Charles Street Corridor.

Not to beat a dead horse, but "appreciation," without a catalyst, is a folly. In 2007, people were convinced that things would appreciate on spurious theories. It seems that it's a very broad term. In any event, every investment needs to have a thesis. Some catalysts I have seen in my area:

- Base Realignment and Closure bringing high-paying jobs to an area.

- New commercial ventures filling a void

- Abatement of nuisances

- Government incentivizing

- Forced appreciation of an under-utilized asset

But, if you pay tomorrow's prices today, you are a fool. Personally, I am looking at areas that have the potential for appreciation because of certain catalysts in the pipeline, but I wouldn't bother if these areas didn't cash flow or otherwise provide economic opportunity in the interim.

What @Rick H. said is correct. Eventually, the house will go into tax sale, foreclosure, or even receivorship if there are outstanding code violations, which, like blood in the water, will attract those looking to strip meat from bones.

Welcome to BP! I lived in Little Italy on Central Ave and then about a block from Kisling's on Fleet. Loved my time in the area and the proximity to Patterson Park, Fells Point, etc. I was back last month and the place really has changed since 2010!

Best of luck in your pursuits!

Insurance companies got hip to lead paint about 15 years ago and specifically removed it from their coverage. If you are getting sued, you are part of a lawsuit involving every owner or their estate dating back to the poisoning. If the tenant moved out long before you owned the property, your lawyer will communicate that to the plaintiff's attorney, and you will likely be released.

@Ned Carey  and @Account Closed , do you only buy houses that are certified lead-free? Do you have the X-ray'd as part of your due diligence?

On second thought, does it really matter how much cash you have sitting around, if you have the capacity to fix things? If you have $5k in a reserve account, but what happens when by some odd coincidence every appliance in the house dies in a six month span, the tenant vacates and it just so happens the carpet is 8 years old an needs replacing before it can be turned over, and the entire place needs a new paint job. It would appear to me that flexibility would be more important than fixed numbers, and your Home Depot, Lowes or Sears credit card may be your best friend.

On another forum, the suggestion was to amortize the individual items that might need replacement, such as water heaters, dishwashers, a roof, etc. For instance, if a roof is going to cost you $4000, and you think you can get another 10 years out of it, put away $400 per year. Water heater should last you 10, so put away 1/10 of the cost of a new water heater per year.

Does this formula work in reality? One potential problem I could see is that the difficulty in forecasting when stuff would break. Does it make sense to stick with a flat figure of $3k-5k per property instead of contributing a little bit each month and letting the cash build up?