let’s talk : BALTIMORE

Good morning!

Over the past MONTH (can you believe it??) we have talked about…

WHY we might invest in real estate,

HOW we may go about doing it, and

WHERE we should invest.

NOW, going forward, I hope for this to become less broad & more so detailed deep dives.

After last week’s email one of our fellow “let’s talk Real Estate readers” reached out to me inquiring about the Baltimore, MD area, and neighborhoods such as Dundalk & Edgemere, This MADE MY DAY and is one of the reasons I started this email blast – so please everyone, feel free to reach out and let me know any specific topics you may want to hear about.  You never know who may also have the same questions / inquiries / curiosities as you & I hope to use this as a way for all of us to learn!

So today, let’s talk BALTIMORE.

Brief History of Baltimore

Baltimore was founded in the 1700’s as a port for shipping tobacco, grain & flour, The 1800’s brought war, the railroad & John Hopkins University to the city. During the early 1900s, much of the Baltimore business district fell victim to massive fires. Soon after, the city was rebuilt upon steelworks, oil refineries, & factories related to war industries. The mid 1900s were known for the rise of the writer’s, and the development of the downtown & waterfront areas. Baltimore population peaked at 920,000 residents. Towards the end of the 1900s, factory jobs cut led to a mass exodus of the Baltimore population & businesses.

Today: Baltimore is on the rebound! Housing prices have finally bounced back from the recession & businesses, especially in the service industry, are moving back.

Baltimore Housing Market

Baltimore has been listed as 1 of the top 10 major markets expected to see the biggest increases in home prices over the course of a year by groups such as BiggerPockets & RealtyTrac.

Pros: 

  • Median sales price: Low-Mid $200,000s (Trulia & Zillow) – this is an increase vs 2016. Home prices are expected to continue to increase in 2018.
  • Average rent: ~$1,400/ month – in line with other major U.S. cities
  • Real estate returns: averaging 15-30% in Baltimore

Cons: 

  • Job growth rate: while Baltimore has experienced job growth over the past several years, the job growth rate is still below national average (as of mid-2017)
  • Population: population declined ~1% in 2016, decreasing for the 2nd year in a row
  • Crime: has been listed on Forbes 10 Most Dangerous U.S. Cities

Dundalk, MD & Edgemere, MD

Pros: 

  • Location: both cities within 15 miles of downtown Baltimore
  • Median sales price: Home values increased ~2-4% over the past year, and are expected to continue to rise in 2018.
  • Commute: Baltimore is a “driving city” allowing for those living in Dundalk & Edgemere to commute downtown – not limited by train / metro stations

Cons (ish): 

  • Little information is available, outside of blogs written by current real estate investors, on the real estate investing market in Dundalk & Edgemere; those who have invested in Dundalk (& blogged about it) have noted;
    • Affordable housing prices
    • Strict tenant screening required
    • Good cash flow returns

What do you think of investing in Baltimore?  Do you have any properties in the Baltimore area? Are you looking to find a deal in the Baltimore area? Let us know your thoughts!

Again, thank you so much for being a part of this and please know that I am open to any and all feedback on how this is structured, content, writing style, etc. As we go forward, I hope to make this more analytical, factual, and even just helpful as we all work to build our real estate portfolios.

Happy Wednesday!

  • Erin

 

Please feel free to send me a note if you would like to add a friend / colleague to this real estate group, or if you no longer wish to receive these emails.

All data and information provided in this email is for informational purposes only. This email makes no representations as to accuracy, completeness, suitability, or validity of any information and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.

Data Sources for today’s content:

http://www.baltimoresun.com/business/bs-bz-employment-maryland-may-20170616-story.html

https://www.trulia.com/real_estate/Baltimore-Maryland/

http://www.thrivedevelopmentgroup.com/why-invest-in-baltimore/

https://www.zillow.com/

https://www.biggerpockets.com/forums/563/topics/397132-investing-in-baltimore

https://www.forbes.com/pictures/mlj45jggj/7-baltimore/#17c5e04f5487

https://www.fortunebuilders.com/baltimore-real-estate-market-trends/

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