Investing in real estate is very promising for it can bring a huge amount of profit with a little amount of risk. However, knowledge of real estate investing and how the real estate market works in general. Having this basic and advance knowledge, together with the perfect timing of the current market conditions, profit is absolutely guaranteed.
The question now is finding the gem among the many houses in the real estate listings. Mark Ferguson in his article at InvestFourMore explains how to find a good investment property. These tips help a lot in making a sound decision in investing in real estate.
How To Find a Good Investment Property
I have purchased over 140 flips and 20 rental properties in my real estate career. In the last year, I have bought close to 30 flips and 2 more rentals. I get a good deal on every single property I buy. In fact, I get a great deal. In order to flip houses, I stick pretty close to the 70% Rule, which states that you must buy a house for 70% of the after-repaired value, minus the repairs. If a house was worth $200,000 after I spend $20,000 to fix it up, that means I can only pay $120,000 for it to make it a good flip. Those types of deals are not available all the time, and they are not easy to find.
They are out there if you know where and how to look for them. Not only have I been getting a lot of deals, but I am also getting them in Colorado, which is one of the hottest markets in the United States. I get deals from the MLS, wholesalers, auctions, direct marketing, Facebook, networking, FSBOs, and other sources. Many people will tell you that getting good deals in today’s market is impossible, but that is not true. They just don’t know how to get them.
What are some ways to find deals on investment properties?
I mentioned I buy properties from the MLS, wholesalers, direct marketing as well as from for sale by owners.
- MLS: I am an agent which gives me a huge advantage. However, you do not have to be an agent to get great deals. The keys to getting the deals are acting fast, making your offers very attractive to the seller, watching for aged listings, and knowing how to negotiate.
- Wholesalers: Most wholesalers will never do a deal. You have to be persistent in looking for good wholesalers. You need to find the wholesalers who are spending money on marketing. Contact them, and get on their buyer’s list.
- Direct Marketing: Some of my best deals have been from mailers I sent out to motivated sellers. These properties are not listed for sale you do not have as much competition. My best deal I bought last year was purchased for $120,000, needed $20,000 in repairs, had $15,000 in other costs, and sold for $210,000.
In the course, there are 8 modules and over 2 hours of video from me on how to find deals. Besides the videos, I also offer many additional resources and a checklist to make sure you are doing everything you should be! I go over many topics, including:
- Hud homes.
- Short sales.
- Estate sales.
- Direct marketing.
- Driving for dollars.
- Standard MLS deals.
- How to negotiate.
- FSBO (for sale by owner).
- Much more.
There are actually lots of real estate listings you can find and visit to find great deals on the property you want to invest in. As mentioned, you need some help of an experienced real estate agent or a broker to find the best deals that will save you from additional hidden costs such as home repairs for damaged properties, etc. There are also lots of available online resources you can read before starting to invest.
Baltimore is identified as among the best cities to invest in real estate primarily because of its prime location and good opportunities for business. Being the largest city in Maryland, there are a handful of people who are looking to buy a property as they move into Baltimore. Perfect opportunity to sell as they say. David Jackson identified more reason why and where to invest in Baltimore’s real estate market in his post at Baltimore Post Examiner.
Why and Where to Invest in Baltimore’s Real Estate Market
Baltimore may not be the first city that comes to mind when thinking about real estate investing, but it’s one of the better-performing markets in the U.S. Growth has been slow and steady in 2018, and the market has remained stable and successful.
Why Invest in Baltimore’s Real Estate Market?
What surprises investors the most is the affordability of Baltimore’s real estate market. The median home price here is $237,855 – much lower than some of the bigger real estate markets in the country. Affordable home prices mean that investors can use leverage to start and expand their real estate portfolios.
Baltimore offers dependable employment. The city has thriving tech, health care, and education fields. The Port of Baltimore also drives industry and jobs in the city. The port handled 38.4 million tons of cargo in 2017 alone.
Baltimore is also popular among college students, which means that landlords typically enjoy a steady and reliable stream of tenants.
The city has a cash on cash return and cap rate of 3.61%. Monthly rental income is about $1,524. Airbnb rental income is about $673 per month with a rental cap rate and cash on cash return of 1.31%.
Looking at data from Mashvisor, Baltimore is seeing growth in a wide range of home types:
- Condos: Prices are up 2.8% compared to 2017. Sales are up 3%.
- Townhomes: Prices are up 11.3% compared to 2017. Sales are up 2.2%.
- Single-Family Homes: Prices are up 9.8% compared to 2017. Sales are up 1.3%.
- Multifamily Homes: Rent prices increased by 0.5% compared to 2017, while vacancy rates have remained the same at 5.6%.
Where to Invest
Just like any other city, there are neighborhoods in Baltimore that are more desirable and may offer a better return on your investment than others.
Charles Village is the home of Johns Hopkins University, which makes it a smart place to invest in real estate. The neighborhood offers a mixture of homes, including condos and row houses.
Both students and faculty live here, which provides a steady stream of tenants. The neighborhood is well-connected to public transport, and 78% of residents are renters.
Rent prices in Charles Village range from $625-$4,250.
Waverly is an historic village in the heart of Baltimore with access to public transportation and easy walkability. The neighborhood offers a mixture of homes, including row homes, detachedsingle-familyy homes, and semi-detached townhouses.
More than half of the people who live here are renters. Rent prices in Waverly range from $600 to $1,500. See full post here…
As mentioned, Baltimore is an awesome city to start your journey in real estate investing for a handful of reasons including it’s near key cities like New York and Washington D.C, its large land area is a perfect opportunity to own property and so much more. In addition, the affordability of Baltimore’s real estate market has surprised a lot of investors across the country. This huge difference is the price is being used by investors as leverage to grow their real estate portfolio. In fact, as early as lot year, a lot of experts were already promoting Charm City as the next destination for real estate investing.
In an article written by Mays Kuhail in Mashvisor, he asked the question is Baltimore Real Estate a good investment for 2018? Find out the answers of some of the market experts below.
Is Baltimore Real Estate a Good Investment for 2018?
Baltimore real estate market: the well-hidden gem.
The first two quarters of 2018 have proven to be great for real estate investing. Real estate investors across states nationwide have had plenty of success this year. The Old Line State, Maryland, is one of these and its largest city, Baltimore, is definitely a winner when it comes to real estate investing. Why do we call it a hidden gem? Simply because it’s not the first city that comes to mind when thinking about where to invest in real estate. Yet, it is still considered among the better performing real estate markets in the nation.
Baltimore has had slow yet steady growth in its real estate market so far in 2018. And while it’s not among the top or most popular markets, the Baltimore real estate market remains one of the most stable and successful real estate markets among the nation. Also, Baltimore real estate is actually one of the most affordable real estate markets in the US. Median home price in Baltimore stands at $237,855, well below most of the nation’s big real estate markets. Moreover, most Baltimore neighborhoods yield high CoC return as well as cap rate relative to home prices.
Baltimore is also popular among college and university students, many of whom go to John Hopkins, UMBC, and UMD. Why is this important? The existence and proximity of popular college towns and cities mean that there will always be prospective tenants that you can capitalize on as a real estate investor.
Before choosing an area or a neighborhood in any city, it’s important to know the numbers for the highest performing neighborhoods and markets. Take a look at the following ranking of some of the top performing neighborhoods for Baltimore real estate, according to Mashvisor.
Top Baltimore Real Estate Neighborhoods
We’re starting out with one of Baltimore real estate‘s most affordable neighborhoods. Located in East Baltimore, Old Town is quite close to downtown Baltimore. Much of Old Town was rebuilt in the 1970s, so income properties are rather new. What’s great about this neighborhood is how high the CoC return and cap rates are. These stand at 10.94% for Airbnb rentals, and at 6.99% for traditional rentals. This is to say that no matter what rental strategy you pursue, you will be making a profit and good ROI. Click here to read the rest of this post…
The experts in real estate markets have already spoken base on various data accumulated that Baltimore is indeed a gem when it comes to real estate investing. The city is definitely a winner when it comes to putting your hard-earned money in buying property. On the other hand, it is also a huge opportunity to sell your house since there will be lots of homebuyers. If you’re looking to sell your house fast, we at Dependable Homebuyers will help you sell your house fast. Visit us on https://www.dependablehomebuyers.com to find out more.
1402 Belt St, Baltimore, MD 21230