My wife and I are looking to venture into an investment property in Baltimore. I’m not sure if anyone is familiar with Baltimore, so let me just say that it has its good and bad, like any other city, it just seems like there is so much destruction in baltimore.
However, I’m hearing that there are some revitilization areas in baltimore, particularly around the Johns Hopkins campus and the new million dollar biotech center they are building.
I’m seeing properties range as long as $30K needing a total rehap to well…hundreds of thousands of dollars. Is is the $30-50K properties that I’m interested in.
For a first time investor who is looking to perhaps rent out the prop until the market gets better, is the $30-50K props that perhaps need a total or partial rehap a good choice? What are the pros and cons?
Anyone familiar with Baltimore real estate? What are some of the things I should look out for?
It really depends what you want to accomplish and what you want to put up with. What is your business plan? Which of these areas have you visited after dark? Which of these areas would you feel comfortable with your wife visiting after dark, or without you?
What does your gut tell you? Even better, what’s your wife’s intuition say? Have you attended any of the REI meetings around town? Do you want section 8 tenants? Do you have enough to cover the rents when the tenants don’t pay?
IMO, $30-50k in Baltimore sounds like the drug zones. I would have to say “no thanks.” but that’s just me. Again, when you have answers to the above questions, you too wil have an answer about investing in these areas.
Raj - I am somewhat familiar with Baltimore and there are several Bmore area REIAs. I would suggest going to each and choosing to join one that you are most comfortable with. In the meantime I would suggest checking out http://www.MAREIA.com - this is a great starter group.
Chris
P.S. Baltimore City can be very tricky…PLEASE do your due diligence BEFORE purchasing anything in the city.
Those are all good questions you ask. I don’t have a business plan, but as a former business grad student, I should know better. Thank you. I will put one together.
As far as the areas…I have done a little research by visiting various places in east and west baltimore. I’m from Washington, DC so I’m not terribly familiar but let me just say, if you aren’t from Baltimore, it all looks to be about the same…like a bomb hit, but yet people live and thrive there. Of course not all of the city is like that, but when you’re paying $30-50K for a prop…well guess what. :-X Now having said that, some areas are better than others from what I was able to see, although I didn’t visit at night. And there are some that I would feel comfortable walking around, but hey…the older I get, the more nervous I get. :biggrin That shouldn’t preclude me from investing though, right? :biggrin Anyways…as I mentioned, I’ve found a couple props that aren’t too far from the Hopkins campus and near the new million dollar biotech center that’s being built. I THINK there are a lot of props being sold in that area and possibly a potential revitalization zone.
As for your other questions…again all good questions that I have to give thought to.
