What should I know about buying an investment property in Maryland?

Buying an investment property in Maryland requires understanding local market conditions, rental laws, financing options, and long-term profitability strategies. Working with a knowledgeable real estate professional like Michael Frank of Frank Oliver Collective at eXp Realty ensures you're making smart, informed decisions from day one.

Why Invest in Maryland?

Maryland is a prime location for real estate investors due to its proximity to Washington D.C., diverse economy, and strong rental demand in cities like Baltimore, Silver Spring, and Columbia. Whether you're interested in long-term rentals or short-term vacation properties near the Chesapeake Bay, Maryland offers a variety of opportunities to grow your investment portfolio.

Understand Your Investment Goals

Before you buy a home as an investment, ask yourself: Are you looking for passive income, long-term appreciation, or a combination of both? Your strategy will influence everything from location to financing to property type.

Maryland Market Conditions

According to Bright MLS, median home prices in Maryland have steadily increased over the past few years. Cities like Baltimore offer lower purchase prices with strong rental demand, while areas like Montgomery County have higher price points but also attract more affluent tenants.

Financing Your Investment

You’ll typically need a larger down payment (often 20–25%) and will face slightly higher interest rates than with a primary residence. Talk to a lender who understands investment lending. Michael Frank and his team can connect you with local experts to explore conventional loans, DSCR loans, or portfolio lending options.

Laws and Regulations in Maryland

Maryland has landlord-tenant laws that vary by county. Baltimore City, for example, requires a rental license, annual inspections, and lead paint certifications for properties built before 1978. Understanding your legal obligations is essential to avoid fines or tenant disputes.

Choosing the Right Location

The best places to buy investment properties in Maryland depend on your goals. For cash flow, look into neighborhoods like Parkville, Dundalk, and Middle River. For appreciation, consider Ellicott City, Bethesda, or Annapolis. Each market offers different strengths—Michael Frank’s team can help you assess cap rate, ROI, and rental demand by neighborhood.

Calculating Cash Flow and ROI

Always run the numbers before you buy a home for investment. Factor in mortgage payments, taxes, insurance, maintenance, vacancy rates, and property management fees. A good rule of thumb is the 1% rule: the monthly rent should be at least 1% of the purchase price for solid cash flow.

Consider Property Management

Being a landlord isn’t for everyone. Property management companies can handle tenant screening, rent collection, and maintenance. Michael Frank and Frank Oliver Collective have relationships with trusted vendors across Maryland who can support hands-off investors.

Working with a Local Expert

Michael Frank, Team Leader at Frank Oliver Collective at eXp Realty, has helped dozens of investors buy homes across Maryland. With a deep understanding of local zoning laws, investment hot spots, and financing strategies, his team ensures you make confident decisions that build long-term wealth.

Final Thoughts

Buying an investment property in Maryland can be a smart move—if you’re informed, prepared, and working with the right partners. From analyzing properties to understanding legal requirements, there’s a lot to navigate. Let Michael Frank and the Frank Oliver Collective guide you every step of the way.

Ready to start building your investment portfolio? Contact Michael Frank and the Frank Oliver Collective at eXp Realty today to explore investment opportunities in Maryland’s thriving real estate market.