The State of Maryland presents an interesting set of challenges and opportunities for house flippers. Home values are considerably higher than the US average, and the median income ($81,868) places Maryland as one of the wealthiest states in America based on income levels.
More importantly, house flippers appear to be winning in the Maryland real estate market. The average revenue per flip ($115,200) is exceptional, and Maryland homes also appear to hold their value, even during trying times. Now let’s take a more detailed look at how to flip houses in Maryland.
Maryland House Flipping Stats
Median Purchase Price
$173,610
Median Resale Price
$299,530
Average Revenue
$125,930
Price Per Square Foot
$186
Maryland Population Size
6,045,680
Median Household Income
$81,868
High School Graduation
90,0%
Travel Time To Work
32.9 Mins
Best Cities for Flipping Houses In Maryland
- Baltimore
- Columbia
- Germantown
- Silver Spring
- Waldorf
Safest Areas In Maryland
- Ocean Pines – Safety Score: 91.2
- Taneytown – Safety Score: 88.06
- Bowie – Safety Score: 86.34
- New Carrollton – Safety Score: 82.82
- Bel Air – Safety Score: 82.68
Please note – All the statistics in this article are based on 2020 data. You can view the data sources at the bottom of the article.
The Basics Of Flipping Houses In Maryland
- Find a property in Maryland that is undervalued
- Source funding from a reputable hard money lender in Maryland
- Buy the property for a price that makes it possible to generate profit when it is resold
- Complete renovations that will increase the after repair value
- Find buyers for the property and sell it for a healthy profit margin
How To Find Houses To Flip In Maryland
1. Use FlipScout By New Silver
FlipScout is a free tool that helps you find most profitable real estate investments using data and intelligence. Find a property to flip or rent out anywhere in the country.
- Free to use
- Works for flips and rentals
- Get alerts to your inbox
- Calculates rehab costs automatically
- See ROI and rental income instantly
- Aggregate results from various sources
2. Leverage The Power of Wholesalers
Finding a good wholesaler can be very rewarding for a property flipper. Wholesalers tend to have access to all the most relevant property databases, and they often have unique personal networks. By using a wholesaler, you effectively gain inside access to their knowledge of properties in Maryland.
3. Attend Bank Auctions
Bank auctions often present opportunities to purchase properties below their market value. This is mainly because banks hold these auctions in order to sell the properties as fast as possible. If you attend bank auctions with a clearly defined strategy, you can potentially walk away with a new property that fits in perfectly with your investment portfolio.
4. Use Direct Mail To Find Off-Market Properties
Although it is considered an old school technique, direct mail can still yield positive results for house flippers. Direct mail has been shown to have a higher response rate than email, and numerous studies have shown that people actually enjoy checking their mailboxes. More importantly, you might be surprised by how many people have considered selling their homes. Your letter could be the trigger that they have been waiting for.
5. Sign Up To The Multiple Listing Service (MLS)
Even though MLS listings can be competitive, it is still a good avenue for finding properties to flip. The MLS is literally a database created by real estate agents, and it is filled with property details and statistics that can help aid your research process. There is a fee involved, but one deal is all you need to comfortably cover the costs.
6. Find Foreclosures
When properties fall into foreclosure, the primary goal of the loan originator is to recoup any potential losses. This is good news for house flippers, because properties in foreclosure often sell for less than their market value. If you are able to locate foreclosure opportunities in Maryland, there’s a good chance you will be able to purchase a property for less than its market value. This is why foreclosure can serve as a great platform for a potential flip.
Maryland Housing Market Analysis
House Flippers Are Selecting Mid-To-Lower End Houses: There is a gap between the median home value in Maryland ($337,871) and the median resale price for house flips in Maryland ($299,530). This suggests that investors are generally focusing on the mid-to-lower end of the market where it may be more common to find poorly maintained properties.
The Revenue Per Flip Is Much Higher Than Other States: The average revenue per flip in the US is just over $65,000. This pales in comparison to the average revenue per flip in Maryland, which is approximately $125,930 according to data from Attom data solutions.
Overall, the high revenue figures should give house flippers a compelling reason to consider the Maryland market. Maryland houses tend to hold their value, and if you choose a good area, there is enough evidence to suggest that you could make over $100,000 if your flip is successful.
Home Values Have Appreciated By 7.7%: According to Zillow, home values in Maryland appreciated by 7.7% over the last year. Moreover, house prices have been steadily increasing since late 2012, with the trend likely to continue in the short term.
The economic impact of covid-19 may have acted as a catalyst for home appreciation in Maryland. Historically low interest rates have increased the demand for housing, while the supply of houses has actually decreased. Generally, this sets the stage for prices to continue rising, until mortgage interest rates increase or more sellers enter the market.
Homes In Maryland Are More Expensive Than The National Average: The average home value in Maryland is $312,990. This is considerably more than the average home value in the United States, which is approximately $248,857.
The higher price of homes in Maryland increases the risks and the rewards when orchestrating a fix and flip deal. The risks are increased, because the capital requirements and holding costs are likely to be greater than other states. However, house flippers are clearly being rewarded for this increased risk appetite, given Maryland’s exceptional revenue per flip statistics ($115,200).
In this case, it is fair to say that the rewards far outweigh the risks, provided you select good neighborhoods and stay on budget.
Apply For An Investment Property Loan
If you’re ready to start your house flipping journey, New Silver Lending can provide the capital you need to fund your first flip. We offer ultra fast hard money loans with competitive interest rates and quick closing times. The entire application can be completed in less than 10 minutes.
Next Steps
If you’re committed to flipping houses in Maryland, the next step is to invest time and energy into finding the best possible property. We have outlined a number of methods in this post, and all of them can potentially bear fruit.
Once you have identified a property, using a reputable Hard Money lender like New Silver can help accelerate the house flipping process. Our company is built on speed, efficiency and user-friendly technology. The online application can be completed in less than 10 minutes, and we offer instant proof of funds letters to all of our clients.
Property Flipping Resources
Hard Money Loan Calculator: Analyze the costs of your next flip in detail with our hard money calculator.
ARV Calculator: Workout the After Repair Value of the property that you are hoping to flip.