How To Flip Houses In Massachusetts

Affectionately known as the Bay State, Massachusetts has become popular with both seasoned property investors and those hoping to make their first flip.

Highlights include amazing universities, extremely passionate sports fans, exquisite scenery and a healthy real estate market. If you’re ready to make your first foray into real estate investment, Massachusetts should definitely make your short list. In this simple guide, we will present a few facts that you need to know about flipping houses in MA before you take the first step.

Key House Flipping Stats MA

Median Purchase Price

$224,500

Median Resale Price

$305,050

Average Revenue

$80,550

Total House Flips In 2019

1,322

Population Size

6,892,503

Median Household Income

$77,378

High School Graduation Rate

90.4%

Average Travel Time To Work

29.7 Mins

Top 5 Cities for Flipping Houses

  1. Boston
  2. Worcester
  3. Springfield
  4. Lowell
  5. Cambridge

Top 5 Safest Cities in MA

  1. Newton – Safety Score: 90.11
  2. Plymouth- Safety Score: 89.54
  3. Peabody – Safety Score: 89.00
  4. Waltham – Safety Score: 88.36
  5. Medford – Safety Score: 86.53

Top 5 Areas with Best Public Schools

  1. Lexington
  2. Newton
  3. Belmont
  4. Lincoln
  5. Carlisle

Please note – All the statistics in this article are based on 2019 data. You can view the data sources at the bottom of the article.

What You Need To Know About Real Estate In Massachusetts

On average, Fix and Flip investors in MA are generating $80,550 in revenue per flip. This indicates that the potential for a successful flip is relatively high, especially if you study the local markets carefully and keep your renovation costs under control.

Single-family homes are the most sought-after property in this area, and the residential sector continues to perform well overall. The median local property in Massachusetts is priced at $407,800 but there can be big discrepancies between cities. For instance, in Springfield MA, the median local price is $160,400, but if you shift to Cambridge, the median local price jumps up to $804,100.

The top 5 MA real estate markets are Boston, Worcester, Springfield, Lowell and Cambridge respectively. Based on this, it might be valuable to assess these areas first, before moving onto cities with less activity.

Simple Tips for Flipping Houses in MA

House flipping is when an investor purchases a property for the sole intention of rehabbing and reselling it for a profit. This is a lucrative investment strategy – there is the potential to make a profit quickly, and get immediate equity if the investor selects the right property and stays on budget.

Fix and flip investors in this area either use their own personal funds or take a loan from a hard money lender. Banks don’t typically fund this type of transaction due to the risk involved, and not wanting to manage a property in case of non-payment.

Fix and flip properties are typically older, character properties which become more valuable through home renovation. Hard money lenders offer investors a variety of benefits such as fast loan approvals and closing. Every real estate investor should aim to keep to the 70% rule, which guides investors to pay only 70% of a property’s after-repair-value (ARV) without the cost of repairs added. The final ARV amount dictates a property’s final value after the renovation has been completed. Other factors that influence the value of a property will include the size, where it is located and the prices of other similar homes in the area. 

Hard money lenders like New Silver offer interest rates and terms that cater specifically to these types of real estate projects.

How To Find A Property To Flip

As a real estate investor hoping to flip houses in MA, it should comfort you to know that demand for local properties is high. Affordable housing is in particularly high demand with a demographic of buyers that is largely made up of millennials. As a result of this demographic, starter homes and secondary single-family properties are sought-after.

The old adage goes, the three most important things in real estate are location, location, and location. To find a good fix and flip property, you should carefully research the performance of local areas you are interested in. You will want to determine what the average housing prices are, what renovation one would cost you and why it would be attractive to potential buyers. You’ll also want to avoid properties that have bigger structural issues or need major repairs, as these can be costly to repair.

Final Thoughts

Armed with the most recent market-related data, fix and flip investors in Massachusetts can better maximize their returns. House flipping is a profitable method of wealth-building for investors, and the MA real estate market assures them of good returns if they choose a property wisely. The local market is projected to continue on an upward trend, and investors can capitalize on this opportunity with funding from New Silver by applying and getting loan approval online in under 10 minutes.

Ready To Get Started?

Use Our Loan Calculator To Figure Out The Costs

Our Hard Money Loan Calculator factors in every major expense in the house flipping process. It can help you assess all the upfront costs, expected interest rates and loan repayments.

Apply for Fix & Flip Funding with New Silver

We offer instant proof of funds letters and can help you close the deal much faster than a traditional bank. Our interests rates are competitive, and our application speed is unrivaled.

Resources Used In This Post

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