Top 5 Best Real Estate Investment Markets in Maryland

Ben Mizes

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Ben Mizes

June 9th, 2022
Updated June 9th, 2022

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If you’re ready to get started in real estate investing in Maryland, you’ve chosen a great state. However, now you need to think about which cities and neighborhoods are best for your goals. Here are the top five investment markets to consider!

Top 5 Best Real Estate Investment Markets in Maryland

If you’re looking to get started in real estate investing, Maryland could be a great place to begin. A lot of people enjoy living there to get access to Washington, D.C. without the high prices.

Compared to a lot of high-quality areas near major metros, Maryland can be quite affordable. As a real estate investor, that gives you a great opportunity to buy homes to either sell or rent at a good profit.

People love the natural beauty of Maryland, and the economy is one of the best in the nation. There are an enormous number of job opportunities, in industries from tech to trade to federal agencies. You won’t have any trouble drawing people to your investment properties!

If you’ve been thinking about investing in Maryland, we've listed five markets that are a good starting point, and offer tips on how to find profitable deals.

1. Baltimore

Baltimore has a steady, dependable economy, as does most of the state. As a result, you’re getting a very reliable investing market. That doesn’t mean it’s easy — a lot of investors are active in the area, so you need to act wisely.

The first thing you’ll want to do is find neighborhoods that are right for the kind of investing you want to do. The areas you’ll focus on for flipping are different than the spots you’ll use for rental properties.

Charles Village is a great place to focus if you want to buy rental properties. The median home value is around $245,000 and the median rent is over $1000. 78% of the residents are renters, making it perfect for that type of investing.

If you’re interested in flipping, you might look at Lauraville. The area is full of single-family homes, with a median home value of $182,682. 75% of the residents own their homes, giving you a great opportunity to fix up a property and sell it.

»FIND: Top Real Estate Agents in Baltimore

2. Frederick

The second-largest city in Maryland is home to over 3,500 companies and has a great, livable infrastructure. It has a growing economy and booming job market, making it very desirable for those looking to rent or buy a home.

The median home value is $255,100, with a median rent of $1285. The population is fairly evenly split between owning and renting their homes. As a result, you can do well as an investor in Frederick no matter which approach you choose.

3. Columbia

Another excellent city that’s rated highly for schools, housing, nightlife, and diversity, Columbia is a good spot to consider investing. The median home value is $367,600 and the median rent is $1,630. 67% of residents own their home, so you might consider flipping here instead of renting.

The median income is $103,707, so residents here are well able to afford the housing. People love that there are so many places to eat, play, and has one of the best public school systems in the state.

You won’t have any trouble attracting folks to your Columbia investment property!

4. Germantown

While technically listed as a suburb of Washington, D.C., Germantown is one of the best places to live in Maryland and is much more affordable than the suburb designation would indicate.

The median income here is $89,720, while the median home value is $326,600 and the median rent is $1,664. 65% of residents own their homes, but that doesn’t mean there aren’t areas to focus on profitable renting.

The area is excellent for families, has great public schools, and is ranked highly for diversity as well. You can definitely do well as an investor here.

5. Rockville

Rockville has high employment rates and high job growth, drawing a lot of people into the city. It’s one of the top 10 best places to live in Maryland, with excellent schools, diversity, and nightlife. You can highlight these features as you market your investment property!

Like Frederick, you have a split between renters and owners in Rockville. 57% own their home and 43% rent. This gives you excellent opportunities whether you want to flip a home or hold rental property.

With a median home value of $498,200, it’s a bit pricier than other areas, but median rent is $1,847 and median income is $100,436. The proximity to Washington, D.C. drives the numbers higher.

How to find undervalued Maryland homes

The best deals in Maryland are usually found on homes with motivated sellers and homes that need extensive repairs. You probably won't find them on Zillow or Trulia, either.

Types of homes that make for good flips or rentals often include foreclosures, pre-forecloses, short-sales, and abandoned or neglected properties. Here's how to find off-market deals.

1. Use real estate investment software

The DealMachine app is one tool that can really help you.

DealMachine's real estate software helps Maryland find and research distressed homes (think: pre-foreclosures, foreclosures, short sales, etc), and get in touch with owners fast via batch skip tracing and direct mail campaigns.

Its driving for dollars app is fast and easy to use. When you're driving around town and spot a home that could be a great deal, you can send the owner direct mail through the app for huge time savings (no post office visits required).

Download the DealMachine app to find undervalued Maryland properties as you drive. DealMachine offers a 7-day free trial and $15 in free credits that can be used towards marketing (like sending out direct mail to homeowners).

2. Partner with an investor-friendly realtor

Partnering with an investor-friendly realtor is the best way to ensure a favorable, easy home purchase.

Agents have expertise in Maryland's variety of markets, understand real estate laws and practices specific to the state, and can provide access to lesser-known neighborhoods and properties that just may be your dream investment.

Clever's real estate agents can guide you through your town's local real estate market and make your house hunting journey a breeze.

Plus, eligible buyers can get back 0.5% of their home's purchase price after closing, potentially saving you thousands on your home purchase.

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