Posted by E.Eka on November 05, 2004 at 12:43:34:
Remove the no spam in my email address. I wanted to chat with you about Balitmore properties as i’m looking to acquire some rentals.
$400+ cash flow in baltimore, but why sell??? - Posted by LS
Posted by LS on November 03, 2004 at 16:04:57:
There are a bunch of good “cash flowing” rentals in baltimore
but since the properties are in a lower class neighborhood, i am somewhat suspicious why the seller’s selling?
And I’m finding it extremely hard to answer this question.
Have been trying to meet with seller but by the time I arrange for that, the property is already sold to someone else.
So from your own experience, do most of these “cashflowing” properties come with a huge potential tenant problem, eviction, police, civil cases, drug, etc… Or do you feel it’s not as bad as what I immagine it to be?
Re: $400+ cash flow in baltimore, but why sell??? - Posted by baltimore
Posted by baltimore on November 09, 2004 at 20:39:39:
check out this baltimore site
www.intelivest.com
they sell a ton of those lower priced properties - i havent personally bought one but i met 2 people at the bowie md real estate meeting that did buy from Intleivest and didnt have any problems…
I too am wary of Baltimore in general because the numbers seem to good to be true.
also theres a guy that advertises in the baltimore sun named phil collector who has some okay deals…
good luck.
Re: $400+ cash flow in baltimore, but why sell??? - Posted by Devon
Posted by Devon on November 04, 2004 at 11:17:04:
I am a broker in Reston, VA and most of the properties I deal with ARE in Baltimore. You can buy a 4-unit building with a net cashflow of over $2K/month… I know it sounds crazy, but its true… WHy you ask?? Well, for starters (this is actually happening right now), there were 4 liens on the property and title company will not issue clear title until fixed. Which is usually the case in Baltimore, that there are many liens on property. Also, they refused to let the appraiser take interior pictures… why you ask?? All the walls had been kicked in and graffiti written all over the walls. A lot of these homes have been vacant for years, kids find them, and just use them as “party houses”. Some of the other properties I have done in Baltimore are just find. They come with decent tenants, decent cashflow, etc. A lot of homes in Baltimore are already rented out Section 8, but you probably already knew that. Most of the homes in Baltimore are non owner occupied anyways (the row houses) people in B-more can’t afford to buy (so they think). So most the time investors come and buy the rowhouses and rent them out to lower class people. I will tell you that almost ALL baltimore properties come with problems… Another example is I had a $55K property in Baltimore and there was a tax lien that another person had paid. The title wouldn’t come as clear until we found this person and he released the lien himself… it took 2 months to find this guy! Sorry for the long message, but I feel as though I may be an expert in Baltimore properties!
Re: $400+ cash flow in baltimore, but why sell??? - Posted by Skip
Posted by Skip on November 04, 2004 at 07:53:11:
LS,
I invest for cashflow and target homes in lower-income neighborhoods. I don’t know how bad the area you’re talking about is, but it should at least be somewhere you feel safe going to. My criterion for a property is $200 month cashflow, but I subtract 30% for vacancies and repairs. If you’re not subtracting that it’s not “real” cashflow.
As far as tenant problems, it helps to screen carefully.
I’m a relative newbie, but I have several guesses as to why lower-income properties cashflow better. One, they may have less appreciation potential. If you’re investing for cashflow that’s not a problem.
Two, some investors buy homes to impress others. Therefore, they buy the kinds of homes they would want to live in.