Affectionately known as the Pine Tree State, Maine has a lot to offer aspiring real estate investors. Over the past year, house prices have increased by 11.5%, making it one of only a select few states to experience double digit home appreciation. With that being said, the average revenue per flip ($45,970) is lower than other states, which means you have to be extra careful with the house you choose and your financial management of the project.
Now let’s dive deeper into how to flip houses in Maine.
Maine House Flipping Stats
Median Purchase Price
$190,900
Median Resale Price
$236,870
Average Revenue
$45,970
Price Per Square Foot
$171
Population Size In Maine
1,344,212
Median Household Income
$55,425
High School Graduation
92,3%
Travel Time To Work
24.0 Mins
Best Cities for Flipping Houses In Maine
- Portland
- Lewiston
- Bangor
- South Portland
- Auburn
Safest Areas in Maine
- Kennebunk – Safety Score: 90.49
- Cape Elizabeth – Safety Score: 89.02
- Wells – Safety Score: 88.59
- York – Safety Score: 87.94
- Falmouth – Safety Score: 87.90
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 Maine
- Find a property in Maine that is undervalued
- Source funding from a reputable lender
- 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 Maine
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 Maine.
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 Maine, 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.
Maine Housing Market Analysis
House Flippers Are Renovating Mid-To-Low End Houses: The median resale value of house flips in Maine is $236,870. This is about $35,000 less than the medium home value in Maine, which is $272,177. The takeaway here is that property investors are focusing on run down homes in mid-to-lower end areas, where it might be more common to find rundown homes.
Experienced flippers know how to transform the after repair value of a home by focusing on renovations that are known to increase resale value. In addition, house flippers are clearly choosing the right areas, knowing full well that the desirability of a suburb has a fundamental influence on the final sale price.
Home Values Have Appreciated By 11.5%: According to Zillow, home values in Maine appreciated by 11.5% over the last year. Moreover, property prices have been steadily increasing since late 2012.
Despite taking a small dip when covid-19 first arrived in the US, the Maine real estate market has responded well since then. Historically low interest rates have increased demand for homes, while the supply of houses hasn’t increased proportionally. This is a recipe for continued home appreciation, at least in the short term.
Less Than Average Revenue Per Flip: Where the average revenue per flip throughout the US is just north of $60,000, the average revenue per flip in Maine is approximately $45,970. For some, this might be seen as a warning sign. It means your rehab budget needs to be pretty light in order to make a profit in this particular property market.
For more details on how to figure out the right price to pay for a property in Maine, have a look at our detailed article on using the 70% rule. By sticking to this rule, you can ensure that you don’t overpay for the property initially. This can have a big impact on the net profit you make, so it’s definitely worth taking extra time when filtering through potential properties in this state.
The Labor Market Has Recovered Well From Covid-19: From 2010 to 2020, Maine experienced a steadily declining unemployment rate. While covid-19 has caused a spike (the unemployment rate jumped from 3.6% in March to 10.8% in April), things have stabilized nicely since then. As of December 2020, unemployment rate is back down below 5%, which is a positive economic sign for the economy and property investors alike.
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 Maine, 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.