Two initial Steps of your due diligence will determine if a rental property is worth it. First step is to follow the General Rules of thumbÂ
The general rule of thumb you should follow for a Baltimore City rental property is the 1% rule.
This general rule of thumb allows you to know if the property will cash flow for you. If you are investing in a property in Baltimore City Maryland then that means the property should at least be 1% if not greater. You may very well find properties upwards of 1.5% or greater.Â
The easiest way to calculate if a rental property is worth it is by using two resources – first being www.Redfin.com to find all of your information, and second being the four square analysis method. I recommend using the spreadsheet so the math can be done quickly and easily on your behalf
You can even find out more about the four square rental analysis process here! For beginners new to real estate, this is the fastest way to understand that general feeling of if a potential rental property is worth it or not.
After you have the initial numbers, then you can continue with your due diligence to determine if this is the right property for you!
You can then determine if this is the right property for you by reviewing the results of the Four Square rental analysis spreadsheet and compare them with your buyer criteria document.
Should this rental property match or at least meet the minimum requirements you have previously decided for investing in a rental property, then you know you are good to go!Â
