I am looking to invest in real estate in MD.... (Baltimore: rentals, new house)

[surfchik1081]

I am loooking to invest in real estate in Md However, I am new to the area and am not that savy in the area yet. I'm unsure where is smart to buy and where is not. Where do you recommend purchasing or where do you think would be a wise place to invest? Any suggestions??!!

I was thinking maybe a well desired place to live that has has a drastic fall in housing prices, possible some foreslosure buyouts? Or, up and coming hot spots that required holding onto for a while?? Or hot spots for renters/commuters into the major cities? Or any places that land is becoming scarce? Let me know your thoughts!! Thanks in adavance!

~Meredith

[pythagras]

I think the gentryfication of urban areas will continue. I'd definitely consider researching "up and coming" urban areas. Low risk investment "up and coming areas" would be in DC. Higher risk would be Baltimore, as they have a much longer road to being as nice a place to live, but that's just my opinion.

I'd also consider likely metro expansion, but this may also be high risk. The most likely expansion in the line going out to Dulles airport, but I believe real estate speculation on these areas has been quite rabid. Real estate costs may already be unreasonable for an investor such as yourself.

[ReefAreCoolToo]

I would say..the water front area. There aint much waterfront left. The couple places I can think of near Baltimore are Middle River, Dundalk and Essex.

Those areas will be up coming...BC pumped a lot $ into revitalization.

[TeamBenya]

You need to evaluatewhat your priorities and desired time frames are, and move from there. It doesn't make sense to just buy property as an investment if you're not familiar with the region and long term trends. Near metro expansion areas may be smart, but for the biggest financial growth, you need to know how close you need to be (within a couple blocks can be very important). Land can also be an excellent long term investment, but what type of land are you thinking about? Land values can change drasticly due to public utility accessability, percability, local development, etc. Buying existing homes can make a lot of sense as well, but are you looking for properties ready to use as rentals or rehab projects? For rentals you're looking for places you can rent out for more than the monthly mortgage. For rehab, you need to be able to assess the cost of repair vs. the cost of resale to determine a bottom line. A question as broad as what you're asking here is going to solicit a lot of different answers, I would highly recommend speaking with a realtor or financial planner who has experience with individual investors.

[lscalder]

If I were you I would invest in Baltimore. This area is the up and coming area right now. Dc is already develpoe and expensive. The only investors who are investing in DC are the ones who invest when no one wanted to at that time which was 10yrs ago. In the next 5-10 yrs Baltimore will be the hotspot area. People forget that when you are investing not to invest in areas that are already develope because you will put out money and get less of a return.

[Marylandsailor]

Severna park, arnold, annapolis, edgewater. All of these areas would be a good buy.

[ReefAreCoolToo]

Originally Posted by Marylandsailor

Severna park, arnold, annapolis, edgewater. All of these areas would be a good buy.

those areas already well developed or the price is already up there..for investment ..i would say the eastern corridor of Baltimore...along
Belair to Glen Burnie

BRAT is moving in a couple years to Aberdeen Proving ground and Fort Meates. There will be a lot of higher paying jobs associates with this move since a lot of them are non military, civilized high tech jobs. Like I said before, also the water front factors.
Alot of those areas are still relatively affordable

[hokiejane]

Here's a recent article from the Washington Post on where the new households as a result of BRAC will land...

BRAC Plan Expected to Bring 22,000 Homeowners - washingtonpost.com

The Pentagon's Base Realignment and Closure plan, which will add workers at Fort Meade and other installations, will bring nearly 22,000 additional homeowners to eight Maryland jurisdictions, according to the state's Department of Housing and Community Development.

Nearly 85 percent of the projected 25,300 new households generated by the BRAC plan would be occupied by homeowners, and the rest would be renters, department Secretary Raymond A. Skinner said.

According to state projections, Harford County, home to Aberdeen Proving Ground, would account for 26 percent of that housing and Anne Arundel County, home to Fort Meade, 18 percent.

Other counties projected to provide BRAC-related housing are Montgomery with 9 percent; Prince George's, 8 percent; and Howard, 7 percent. About 14 percent of the BRAC households are expected to be in Baltimore County, 10 percent in the city of Baltimore and 8 percent in Cecil County.

[jonjj]

I did just what you are thinking of doing and now live in a very comfortable home after years of buying, rehabbing, buying, rehabbing. Baltimore is your best bet and look for areas not under the microscope but near to neighborhoods that have already gentrified. In southeast, everything south of the park is very expensive so for the past few years, folks have been investing and rehabbing in Patterson Park. That area is one consideration. Another would be Highlandtown as it is right next to tons of rehabbed neighborhoods. Reservoir Hill has also seen a lot of changes lately but I think that area is still a bit dicey in terms of crime. I know folks who have moved there and love it though. Forget all of the waterfront areas. Shells of home now costs upwards of 100 grand or more. History: bought my first home in Fells Point ages ago and turned a nice profit after rehabbing it. Then I bought a dump in Canton and really made some bucks after that one. Now I am in the Patterson Park area. There are still some good deals to get in this area and it is getting hotter in the market but prices for some that need total rehab are getting higher and higher.

[dragonfennel]

I live just over the eastern border of DC in a little town called Mount Rainier. If I had money to invest, I'd be buying up houses here and just to the north in Hyattsville and Riverdale Park. All three communities are historic areas that are revitalizing/gentrifying and are super close to DC. There's a lot of development in the works already, but there are still some really good deals.

Mount Rainier is arguably the hippest (or at least hippie-est) of the three towns and is closest to DC. But Hyattsville is getting more development at the moment (they just got a knitting store -- I think that's some kind of a tipping point!). And in a few years when there's a Whole Foods in Riverdale Park, I suspect that area will just explode.

Best of luck with your search!