I Bought a House for $135K in Baltimore—And This Is What I Learned
Eight years later, here's the real truth about buying an affordable house in a city everyone told me to avoid
When I tell people I bought my first house in Baltimore for $135,000, they usually have one of two reactions: complete shock or immediate skepticism.
"What was wrong with it?" they ask. "Was it in a terrible neighborhood? Did it need massive repairs?"
The truth? None of the above. And six years later, that "risky" $135K purchase taught me more about money, life, and building wealth than any financial advisor ever could.
Today, I'm sharing everything I learned from buying an affordable house in Baltimore—the good, the challenging, and the completely unexpected. If you're considering affordable housing markets or questioning whether Baltimore could work for you, this is the real story behind the numbers.
The $135K House That Changed Everything
Let me paint you the picture: December 2018, fresh out of a DC apartment that was costing us $2,200 a month for 700 square feet. My boyfriend (now husband) kept insisting we look at Baltimore, and I kept insisting he was crazy.
But the numbers were undeniable. While DC friends were stretching for $600K condos, we found a completely renovated 3-bedroom rowhouse in Baltimore for $135,000.
The House Details:
Price: $135,000
Size: 1,800 square feet
Bedrooms: 3
Bathrooms: 2.5
Condition: Completely renovated (new everything)
Monthly payment: $1,100 total
My share: $400/month
Yes, you read that right. My housing costs went from $2,200 to $400 overnight.
What I Learned About "Affordable" Housing Markets
Lesson #1: Affordable Doesn't Mean Compromised
The biggest surprise? This wasn't a fixer-upper or a house in terrible condition. It was a complete gut renovation with:
Brand new kitchen with stainless steel appliances
Renovated bathrooms with modern fixtures
New flooring throughout
Updated electrical and plumbing
Fresh paint and modern lighting
The Baltimore Reality: Investors here buy distressed properties for $20K-40K, invest $50K-80K in renovations, and sell them at prices that are still affordable. What $50K worth of renovations looks like is incredible when you see it.
Lesson #2: Location Within Location Matters
Not all of Baltimore costs $135K, and not all $135K houses are in great areas. We spent months researching neighborhoods and found our sweet spot in Hanlon—a quiet, family-friendly community with:
Close proximity to MARC train (7-minute drive)
Mix of families and long-term residents
Low crime within a 3-block radius
Well-maintained properties
Small community feel within the city
The Research Strategy That Worked:
Used crime heat maps to identify safe pockets
Visited neighborhoods at different times of day
Looked for signs of community investment (maintained properties, families with children)
Prioritized areas with good transit access
The Financial Impact: Beyond the Sticker Price
The Monthly Reality
Before Baltimore (DC apartment):
Rent: $2,200
Parking: $285
Utilities: ~$150
Total: $2,635/month with no equity building
After Baltimore ($135K house):
Mortgage: $1,100 (my share: $400)
Utilities: ~$120
Property taxes: ~$100/month
Total: $620/month while building equity
Monthly savings: Over $2,000
What That Extra Money Made Possible
With an extra $2,000+ in our monthly budget, we could:
Actually save money for the first time
Invest in home improvements
Take vacations without credit card debt
Start planning for kids without financial panic
Begin thinking about investment properties
The Appreciation Reality
Here's where it gets interesting. That $135K house we bought in 2018? According to current Zillow estimates, it's now worth around $227,000.
The math:
Purchase price: $135,000
Current estimate: $227,000
Appreciation: ~$92,000 over 6 years
Annual appreciation: ~10.5%
But here's the real kicker—we actually sold it for $195,000 after putting about $10,000 of improvements into it. Our profit: $70,000.
What I Learned About Baltimore Real Estate
The Investment Potential Is Real
Baltimore consistently shows up as one of the best cities for real estate investment, and living here showed me why:
Active Investor Market: Properties regularly sell to investors who renovate and flip or rent them out
Rental Demand: Growing professional population creates steady rental demand
Development Pipeline: Major projects like the $900M Inner Harbor redevelopment signal long-term growth
Affordability Gap: Still one of the few East Coast cities where regular people can afford to invest
The Renovation Reality
One thing that surprised me: most houses at this price point have been recently renovated. There's an entire ecosystem of investors who:
Buy distressed properties for $40K-60K
Invest $50K-80K in complete renovations
Sell for $200K-300K
Still leave room for buyer equity growth
This means you're often getting move-in ready houses with modern systems and finishes.
The Challenges Nobody Talks About
Challenge #1: The Perception Battle
The hardest part wasn't buying the house—it was dealing with other people's reactions.
DC friends acted like I was moving to a war zone
Family members questioned our judgment
Colleagues made assumptions about "why we settled"
What I learned: Other people's fears about Baltimore often had nothing to do with actual experience and everything to do with media narratives.
Challenge #2: The Commute Reality
I continued working in DC for six years, which meant commuting via MARC train. The reality:
Pros:
No driving stress or parking costs
Productive time on the train
Guaranteed seat (unlike Metro)
Monthly pass: $250
Cons:
Limited schedule flexibility
Weather delays occasionally
1.5-hour daily commute time
The verdict: The $2,000+ monthly savings made the commute worth it, and I actually used the train time productively.
Challenge #3: The Infrastructure Differences
Coming from DC, Baltimore's infrastructure took adjustment:
Public transportation isn't as extensive
Some services (delivery, rideshare) less readily available
Neighborhood amenities varied more widely
The adaptation: Having a car became more important, but parking was free and easy everywhere.
What This Experience Taught Me About Wealth Building
Real Estate as an Accessible Investment
That $135K purchase was my introduction to real estate investing, even though I didn't think of it that way at the time. I learned:
Equity building happens automatically with every payment
Appreciation can significantly boost wealth over time
Tax benefits of homeownership add up
Forced savings through mortgage payments builds discipline
The Power of Lower Living Costs
The monthly savings weren't just nice-to-have—they were wealth-building tools:
Emergency fund became possible for the first time
Investment accounts started growing consistently
Side business funding came from housing savings
Future home down payment accumulated naturally
Geographic Arbitrage in Action
Moving to Baltimore was my first experience with geographic arbitrage—earning similar income while dramatically reducing living costs. The impact:
Same DC salary, Baltimore expenses
Ability to take entrepreneurial risks
Financial cushion for life changes
Investment capital for future opportunities
Would I Do It Again?
Absolutely, but with some adjustments based on what I learned:
What I'd Do the Same:
Research neighborhoods thoroughly using crime maps and community visits
Prioritize renovated properties for move-in readiness
Focus on transit access if commuting to another city
Buy below market value to ensure equity growth potential
What I'd Do Differently:
Invest in better security system from day one
Build higher fences for privacy and security
Research city services (trash pickup, snow removal) more thoroughly
Connect with neighbors immediately to build community faster
The Bigger Lesson: Question Your Assumptions
The biggest thing I learned from buying a $135K house in Baltimore? Most of our assumptions about "good" and "bad" real estate markets are based on perception, not reality.
The assumptions I held:
Cheap housing means bad housing
Baltimore is too dangerous to live in
You can't build wealth in affordable markets
Moving away from DC meant moving backward
The reality I discovered:
Affordable housing can be high quality
Safety depends on specific location and common sense
Wealth building accelerates with lower living costs
Moving to Baltimore was moving toward my goals, not away from them
Is Baltimore Right for You?
Based on my experience, Baltimore might work for you if:
You're paying too much for housing relative to your income
You want to build equity instead of paying rent
You're open to commuting if you work elsewhere
You value community and want to know your neighbors
You're interested in real estate investment opportunities
You're willing to research neighborhoods thoroughly
Baltimore might not work if:
You need extensive public transportation daily
You're not comfortable doing location research
You require specific urban amenities in walking distance
You're not open to adjusting expectations about city services
The Bottom Line
Six years later, that $135K house purchase remains one of the best financial decisions I've ever made. Not just because of the money saved or equity built, but because it taught me to:
Question assumptions about housing markets
Research opportunities others overlook
Make decisions based on my goals, not others' fears
See real estate as wealth-building, not just shelter
The real lesson: Sometimes the best opportunities are hiding in the places everyone else is afraid to look.
Ready to Explore Baltimore Real Estate?
If my story has you curious about Baltimore's housing market, here are your next steps:
Get Informed:
Follow me on Instagram for Baltimore housing content
Book a consultation to discuss your specific situation
Take Action:
Connect with my network of Baltimore real estate professionals
Get pre-approved to understand your buying power
Start researching neighborhoods that match your needs
Remember: the best time to explore affordable housing markets was yesterday. The second best time is today.
Your Baltimore house hunting journey starts with getting curious instead of staying certain.
Want more real talk about Baltimore real estate? Subscribe to my newsletter "Hello Charm City" for bi-weekly insights, neighborhood spotlights, and investment opportunities that most people never hear about.
About the Author: After purchasing her first Baltimore home for $135K and building significant equity, Gift became a licensed Baltimore realtor helping others discover the wealth-building opportunities in Baltimore real estate. She specializes in helping DMV professionals explore Baltimore as an affordable alternative to DC area housing costs.
Connect:
Website: hellocharmcity.com
Instagram: @hellocharmcity
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