Podizm, Both Buyer and Seller in Baltimore, MD

Is it a good idea to buy rental property in baltimore city /units / ? What should I consider when I buy these units?

Asked by Podizm, Baltimore, MD Mon Dec 2, 2013

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6
Maybe.

Baltimore appears to be a very attractive market--very inexpensive with pretty good rents. However, people who know Baltimore will tell you that the character of the city changes block by block. You really have to know what you're doing and what you're buying. While I know some people who've done well in Baltimore, I also know some who've gotten badly burned.

Make sure you're dealing with someone who knows Baltimore, who's done this before. Make sure, too, that you've got good management in place. And remember that you're buying solely for cash flow. Forget the "ARV" figure on any properties you buy for rentals. All you care about is a healthy positive cash flow.

Hope that helps.
2 votes Thank Flag Link Mon Dec 2, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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Join a local Real Estate Investor Club and discuss with members of the club.
0 votes Thank Flag Link Tue Dec 10, 2013
Depends. Your goals and risk tolerance will dictate which area you target and why. Some neighborhoods have average rents of $800-$900, while others average over $1,200 a month easy. What are you looking for in a rental property? Location? Number of bedrooms? Desired rental income per year? How much do you want to clear after all expenses are paid each month? Do you have a property manager to work with or do you intend to manage the landlord/tenant relationship? These are just a few key questions to ask yourself as you get started. I'm from New York and understand the rental market a great deal. I've been in Maryland real estate for 4 years and just became a Broker. Give me a call if you need more help analyzing your needs.

Thanks,
Marlene
410-499-7279
0 votes Thank Flag Link Tue Dec 10, 2013
As with ANY market, you look at the prospective house, what the asking price is, average rental market in the area, etc. There is a formula investors use to decide what the gross rent value index is and how much you should be paying for the house.
My career before children and a Realtor was a BCBA (Board Certified Behavior Analyst)-my background in statistics/analyst training can identify what properties are potential investor properties.
Email me at : SusanReinhart6@gmail.com
Call or text me at: 410.456.1943
0 votes Thank Flag Link Mon Dec 2, 2013
Absolutely - but the price you will pay for the property and the cash flow you receive will depend on where you want to buy. Baltimore city has an attractive rental market in neighborhoods such as Canton, Federal Hill, Fells Point, Patterson Park, and Otterbein. Homes in these areas can be quite expensive, but you attract tenants that are willing to pay $800 or more per room depending upon the quality of the home and whether it has parking. Of course you will pay mid $250's or more for these homes, but you will attract tenants that work near Downtown Baltimore or at one of the many hospitals in the area.

There are plenty of other areas to invest as well, but you want to determine whether you are comfortable being a landlord in these areas. I have investors that have property all over the city and their reasons for selecting homes were based on purchase price, cash flow, and their comfort with the neighborhoods in which they wanted to invest.

As an investor and Realtor I would be happy to guide you through the process. I can be reached at 443 564 0952, john.maranto1@comcast.net or visit my site at http://www.findbaltimoreareahomes.com.
0 votes Thank Flag Link Mon Dec 2, 2013
Yes I own many and can help you put you in the right direction. I live and work in Federal Hill for Prudential. The email below by Don Tepper is spot on with advice. Thanks-Jeff Washo
0 votes Thank Flag Link Mon Dec 2, 2013
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