Baltimore, Md is my REI here - Posted by DWUTAH

Posted by Nate(DC) on July 09, 2002 at 16:30:28:

One final thought…a lot of people confuse “high(er)-priced” with “over-priced”.

Over-priced means higher than market value in the area.

High(er)-priced is just a term to describe one price relative to another. Nothing to do with market value. The fact that something is higher-priced has no relation to whether or not it’s over-priced.

What you really were thinking is “gee these houses in DC are expensive”, which does not translate into “over-priced”!

NT

Baltimore, Md is my REI here - Posted by DWUTAH

Posted by DWUTAH on July 09, 2002 at 10:01:29:

I’ve been looking at houses for sale in Baltimore, Md which some are very inexpensive. I already have a house in southern maryland with probably another 25 years left to pay on it. I wonder is Baltimore, MD a good place to start my REI. Most houses are fixer-uppers with minor repairs but very inexpensive. I live near the DC Metro Area surrounded by Virginia, DC, and Maryland and the housing market is unbelievable and very expensive here. Even HUD and VA houses are going for 190,000 and above. I’m not saying that I want all of my REI houses to be inexpensive I just want to be able to buy more than one within 5 years without having to look at houses that cost between 170,000 to 200,000 that need repairs.

All responses would be greatly appreciated. Thanks.

D

Re: Baltimore, Md is my REI here - Posted by Nate(DC)

Posted by Nate(DC) on July 09, 2002 at 10:58:23:

Supply and demand determines the price of everything, including real estate.

A lot of the houses in Baltimore are cheap for a reason.

(I’ll leave the rest for you to fill in).

NT

Re: Baltimore, Md is my REI here - Posted by DWUTAH

Posted by DWUTAH on July 09, 2002 at 13:30:30:

Thank you NATE for your reply because I was thinking that houses in Baltimore are very cheap for a reason. I’ll set my sights elsewhere in Maryland or DC.

D

Re: Baltimore, Md is my REI here - Posted by Nate(DC)

Posted by Nate(DC) on July 09, 2002 at 14:02:43:

This is not to say you can’t make money in Baltimore. I know people that do.

But you can’t just look at the price and say “If houses in DC are selling like hotcakes for $100K, then this house for $5K in Baltimore must be a good deal.”

It doesn’t work like that!!

Good luck,
NT

Re: Baltimore, Md is my REI here - Posted by DWUTAH

Posted by DWUTAH on July 09, 2002 at 14:32:46:

Thank you so much for your input because I have been thinking about this for a long time and going back forth with my decisions about REI in Baltimore but not really sure about this issue. I now know that my decisons to invest will now focus mainly in areas closer to DC and probably in DC where the market is really good. I just thought that since I don’t have much money to work with that Baltimore had some really good deals, but how good are these deals and like you said “There must be a reason that houses are so inexpensive” which I thought about also. It just seemed to me that houses closer to DC, HUD/VA were just so overly priced, but I guess every now that then you find a good deal with low money sources. I know I can find something closer to DC and not have to come up with a lot money. I just need to focus more on creative financing. Thank again.