Deciding to invest in real estate can be a smart move for many types of investors. Yet, your local rental market may not provide you with the wealth of opportunities you’re seeking. If you want to grow your real estate investment portfolio, think bigger—you may need to investigate out-of-state investing.
Renters Warehouse BW Metro often works with clients that buy and manage property outside of their home state as a Maryland property management company. Investing in the DMV area can work very well with the right strategies.
Why Consider Buying Real Estate Investments Elsewhere?
It’s no longer necessary to live around the corner from the single-family homes or multi-family properties you own and rent out. In many ways, investors are rapidly expanding their portfolios by seeking out locations that have a better rental market or a burgeoning opportunity to find affordable and desirable housing to purchase.
Many investors see the DMV area as an opportunity—could it be right for you?
- You'll need the right research to find and buy the right rental properties.
- You'll need to investigate which rental markets are in demand where more people rent than own.
- You'll also want to manage your long-distance investments with the right Maryland property management services.
Investing out of state can be ideal for those property owners looking for more flexibility in the types of property you hope to own. Some real estate investors turn to us because they are looking for a better ROI than what their local community can offer.
In all cases, you need to ensure the location you are buying in is worth your investment.
Why Choose Baltimore? The Advantages of Maryland Rental Property
Our Maryland property management company works directly with investors who wish to own and rent property in Maryland. Many out-of-state buyers turn to this market to expand their residential investment portfolio. Here are a few of the reasons why:
#1: The Average Rental Price in Baltimore
As of 2020, the average apartment for rent in the city of Baltimore is priced at about $1,300 a month. This is an average increase of 2% year-over-year. For those seeking a solid ROI, this could be one of the best reasons to buy property in Baltimore as an investor.
#2: The Median Home Price
Are you looking to invest in single-family homes? The median home price in Baltimore is low and generally affordable to many investors. As of 2020, that was $159,900, according to some reports.
However, home prices are on the way up—about 6% in the last year with the expectation of growth in the coming years. That could create equity for property owners. Still, it makes buying a home here to rent out desirable as your properties in the Maryland area build value.
#3: The Job Market
Another factor to think about when buying a property specifically to rent is the job market. Is it strong with good opportunities for people to find jobs? The answer in Baltimore is generally 'yes!' Baltimore has a low unemployment rate (3.6%) and a strong job market index.
This means good opportunities for those living in the area to find work, and it also makes Baltimore a place where transplants looking for work will be moving. That presents an opportunity for you as an investor.
#4: The Demand for Rental Homes
Another solid factor to consider when purchasing real estate in Maryland for investment purposes is just how in-demand rentals are. You want to buy in a market where there’s a demand for property and not an oversaturation of available rentals. The Baltimore market is respectable in this arena as well: over half of all residents in the area rent instead of buying a home. That means there will be consistent demand for available rentals in most situations.
#5: The Tax Rates
One thing you will learn when working with a Maryland property management company is that it is not just about the rental income you can receive; you have to consider the costs associated with renting that property. Maryland’s effective property tax rate is 1.1%. That is a bit above the national average but still lower than nearby Pennsylvania and New Jersey.
Could This Be the Ideal Opportunity for You?
If you have thought about purchasing real estate in the DMV area and renting it out, do not forget to look at opportunities out of your state. In Maryland, there are opportunities for investors—from beginner to seasoned pro—to take advantage of a solid rental market.
Are you unsure if this is the right move for you? If that’s the case, it’s time to talk to our Maryland property management experts to determine what your best options and opportunities are. One of the nice benefits of working with our Rent Estate™ Advisors is that you do not have to worry about finding the ideal property or neighborhood; our team can help you with that process, enabling you to find the best move for your investment portfolio.
Investing in Baltimore may be right for you! Learn more when you download our free guide to real estate investing!