Real Estate investors looking for returns from both cash flow and appreciation continue to love Maine for rental properties. The Pine Tree State is loved by real estate investors due to many factors including a strong diversified economy, prosperous population and natural beauty in the north that drives year-round visitors! Easy Street Capital is proud to be a leading provider of rental properties for real estate investors looking for loans to build rental portfolios in Maine!
Investment Property Loan Types for Maine Real Estate Investors
Maine presents a wide range of rental property loan options and diverse markets for real estate investors. The state features many well-built older properties, brimming with potential, waiting for renovators to restore them to their former splendor. For investors adept at rehabbing older properties, hard money renovation loans are a perfect choice! These loans allow you to buy a property quickly and fund your renovation costs too! Once completed, you can either “flip” the property for a quick return or pursue the BRRRR Method by renting it out and then refinancing into a long-term, low-rate DSCR loan!
Investment property loans can be a useful tool for real estate investors, particularly when purchasing turnkey rental properties. The term “turnkey” refers to properties that are already rental-ready and require no further renovations. Move-in ready single-family and multi-unit homes, as well as fully furnished short-term rentals, can generate both cash flow and price appreciation. Long-term DSCR loans are generally fixed rate for thirty years, allowing investors to lock in a fixed interest rate while rents and appreciation continue to increase over time. This can be a powerful way to steadily build wealth through real estate investing.
Where To Invest In Real Estate In Maine
Maine offers captivating opportunities for real estate investors. Portland, the state’s largest city and a popular coastal destination, provides a dynamic market with various investment strategies to explore. Lewiston, the second-largest city in the state, presents an attractive investment opportunity with its growing job market and strong demand for rental properties. Augusta, the state capital, boasts a stable rental market supported by government and healthcare sectors. Bangor, a regional hub in central Maine, offers a stable rental market and affordable housing options. Lastly, Kennebunkport, a stunning town on the coast of the state, offers an ideal location for vacation rentals and cabins with scenic views.
Portland
Portland, located on the southern coast of the state has a population of 68,400. The city offers a diverse economy, with industries such as healthcare, education, and tourism contributing to its growth. Situated on the vibrant east coast, Portland stands as a prominent trade and commerce hub, attracting a diverse workforce.
Portland is also rich in cultural attractions, with renowned museums like the Portland Museum of Art and the Children’s Museum and Theatre of Maine. Its lively downtown area is filled with a wide array of shops, restaurants, and breweries, adding to the city’s appeal. Visitors and residents alike enjoy exploring the Old Port district, known for its cobblestone streets and charming atmosphere.Real estate investors can benefit from the strong rental demand in Portland. The city attracts tourists throughout the year, drawn to its natural beauty, historic sites, and vibrant events such as the Portland HarborFest and the Maine Lobster Festival. The availability of short-term rental properties provides opportunities for investors to capitalize on the city’s thriving tourism industry.
As a popular tourist destination, Portland attracts visitors from near and far. The city’s picturesque waterfront, charming Old Port district, and renowned culinary scene make it a sought-after location for short-term rentals and vacation properties. The city’s cultural events, including music festivals and art exhibitions, further enhance its appeal to tourists, creating a thriving market for temporary accommodations.
According to Zillow, the average rent price per month in Portland in March 2024 was $2,600. Additionally, Portland’s strong rental market and steady population growth make it an appealing destination for real estate investors seeking consistent rental income and long-term appreciation potential.
Lewiston
Lewiston, located in the central region of the state, is a lively city. This city is the second largest city in the state. With a population of over 36,000, Lewiston offers a diverse economy driven by sectors such as healthcare, education, and manufacturing. The city is home to institutions like St. Mary’s Regional Medical Center, providing stability and attracting a skilled workforce. Mary’s Regional Medical Center in Lewiston serves as a major employer in the region, offering a wide range of job opportunities in the healthcare sector. The medical center’s workforce includes doctors, nurses, healthcare professionals, and support staff who may require rental properties in the area, creating a consistent demand for housing options.
Lewiston also boasts a rich cultural scene with numerous attractions to explore. The Franco-American Heritage Center celebrates the city’s French-Canadian roots, while the Public Theatre offers captivating performances. The Great Falls Balloon Festival attracts visitors who are in search of accommodation while they immerse themselves in the magical experience of hot air balloons and breathtaking views. Additionally, the vibrant downtown area features a variety of dining options, local boutiques, and art galleries, creating a lively and engaging atmosphere.
St. Mary’s Regional Medical Center in Lewiston serves as a major employer in the region, offering a wide range of job opportunities in the healthcare sector. Due to the presence of the medical facility, there is steady demand for medium term rentals which includes doctors, nurses, healthcare professionals, and support staff.
Augusta
Augusta, the state’s capital, situated near the Kennebec River. The city’s diverse industries, including healthcare, government, and education, contribute to a stable job market, making it an appealing destination for long-term rental properties. With a population of approximately 19,000 residents, Augusta exhibits a steady demand for rental properties.
Real estate investors can find promising investment opportunities in Augusta, with a median home sales price of $255,000 as of January 2024, according to Redfin. Additionally, the average rent in Augusta for all property types was $1,500 per month as of March 2024, according to Zillow. This makes it an attractive market for rental properties, with the potential for favorable cash-on-cash returns.
Visitors can explore the historic Maine State House through guided tours, enjoy live music performances at the Augusta Civic Center, and celebrate the scenic Kennebec River at the Kennebec River Rail Trail Fest. The Augusta Balloon Festival showcases hot air balloon rides and glowing balloon displays, while the Capital Area BBQ Festival satisfies food lovers with mouthwatering barbecue delights. Additionally, Kennebec River Day offers water-based activities and festivities along the picturesque river. Overall, Augusta is great place for visitors and residents alike.
Bangor
Bangor is a thriving city located in Penobscot County. With a population of over 30,000, Bangor is a vibrant and desirable place to live in the state. Real estate investors can find great opportunities in the city, especially in single-family rentals and small multifamily properties.
One of the main factors that make Bangor an attractive market for real estate investors is its stable job market and strong economy. The city offers a diverse range of industries, including healthcare, education, and tourism. These industries contribute to a steady demand for rental properties, ensuring a consistent flow of tenants and low vacancy rates for investors. Bangor benefits from its proximity to the University of Maine, located just an 18-minute drive away. This close proximity makes Bangor an ideal destination for students who may visit the city for a weekend getaway or to explore a new city. Real estate investors can leverage this advantage by offering short-term rental properties that cater to the needs of visiting students and their families.
Another advantage of investing in Bangor is the affordability of real estate prices. Compared to other cities in the state, Bangor offers relatively lower housing costs, around $254,500 for a single-family home, making it an appealing destination for renters and investors. The city has also experienced population growth, with a steady increase in residents over the years.
Kennebunkport
Kennebunkport, located on the beautiful coast of the state, showcases a picturesque coastal ambiance with an array of outdoor activities and natural wonders. This enchanting town is celebrated for its stunning coastal landscapes, pristine beaches, and historic landmarks, captivating visitors with its beauty. Explorers can immerse themselves in popular destinations such as Kennebunkport Beach, the Rachel Carson National Wildlife Refuge, and the captivating exhibits at the Brick Store Museum.
As a coveted coastal destination, Kennebunkport allures tourists seeking a serene beach retreat or an exploration of the region’s rich history and natural allure. Investors should be mindful of the seasonal nature of the market, as summer months typically bring higher rental demand, while occupancy may vary during the off-season.
According to AirDNA, Kennebunkport’s monthly projected revenues reached as high as $12,700 this past year with an overall yearly income of around $122,800! This presents an enticing opportunity for investors seeking to capitalize on the town’s vibrant tourism industry and generate attractive rental income. With a remarkable investability rating of 86/100, Kennebunkport beckons real estate investors with the promise of a thriving market and robust earning potential.
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Ready to invest in real estate in Maine? Easy Street Capital is Maine’s best provider of rental loans for both hard money rehabs and long-term rental properties.
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