Why dont Investors buy Vacant Blocks in Baltimore City?

Here I talk about my experience with why investors in Baltimore City don't just buy blocks of vacant houses. This is from my experience as an investor for about a year and a half in Baltimore.

Ultimately this comes down to three main principles:

1) Excessive liens from the city for unpaid water bills, fines, and other code enforcement. This is stacked on the mortgages that might not be paid or are stuck in a long foreclosure process

2) The ARV (After Repair Value) is far under what the cost of the renovation would be. This prevents investors from selling the house after the renovation or doing a cash out refinance to get their money back. This means the investor would essentially have to rely on the low rents to make their money over the course of decades or operate at a loss

3) The tenants and slum lords in the area will much more difficult to work with. There is a high possibility the tenants will not pay rent and will likely trash the house. Also the rent prices will remain low since other landlords in the area wont take care of their properties.

#Vacants #Baltimore #Renovations