Flipping in Springfield means working with older houses under Massachusetts rules. Lead-safe work practices, a fire department sign-off before the sale and an attorney-run closing are all part of the job, and each one belongs in the budget and the calendar.
In short: LendingStreet funds Springfield fix and flip projects on 1-8 unit investment properties from $150,000 to $5M+. Some programs cover up to 90% of cost and up to 100% of the rehab budget, and closings can happen in as little as 10 days. The loans are short term and interest-only, with an exit by sale or a refinance into a DSCR rental loan.
Single-family capes, ranches and colonials in Sixteen Acres, East Forest Park, East Springfield and parts of Forest Park are the most common flips. Buyers are often first-time buyers priced out of eastern Massachusetts or Connecticut, many using state and federal purchase programs that come with their own inspection standards.
Two- and three-family flips are also common. Owner-occupant buyers of multi-families use one unit as a home and rent the others, while investor buyers look at the rent roll. Know which buyer you are building for before you choose finishes.
In the suburbs, Ludlow, Agawam, Chicopee and Westfield draw buyers who want a yard and a newer kitchen at a price below Longmeadow or East Longmeadow.
We size the loan on the purchase price, the rehab budget and the after-repair value. Some programs fund up to 90% of total cost and up to 100% of the rehab. Rehab funds are held back and released in draws after each stage is inspected.
Interest is charged on what has been drawn, so your payment grows as the work progresses. Your experience, the scope of work and the strength of the resale comps all affect leverage.
Investors with completed flips on record may see higher leverage and simpler draw terms than first-time flippers.
| Item | How it works |
|---|---|
| Purchase funds | Paid at closing as a share of the price |
| Rehab funds | Held back; released in draws after inspection |
| Payments | Interest-only on the amount drawn |
| Term | Short term, set to the project |
| Exit | Sale, or refinance into a DSCR loan |
This example is illustrative and not a quote. An investor buys a dated ranch in Sixteen Acres for $205,000 and plans a $60,000 rehab: kitchen, bath, flooring, windows and a new heating system. Total cost is $265,000, and the after-repair value is estimated at $330,000.
The loan covers 85% of the price plus the full rehab, or $234,250, about 88% of total cost. Fully drawn, the estimated interest-only payment is about $1,952 a month. Over a 6-month hold with taxes and insurance, carrying costs total about $14,112.
At resale, selling costs run about $21,450 and the Massachusetts deeds excise, paid by the seller, is about $1,505. After about $5,500 in purchase closing costs, estimated profit is about $22,433, and total cash in the deal is about $50,362.
| Line | Amount |
|---|---|
| Purchase price | $205,000 |
| Rehab | $60,000 |
| Loan | $234,250 |
| Carry, 6 months | $14,112 |
| Selling costs and deeds excise | $22,955 |
| Estimated profit | $22,433 |
Most Springfield houses were built before 1978, so you should assume lead paint is present until tested. Renovation work that disturbs painted surfaces in pre-1978 housing has to follow lead-safe work practices, and Massachusetts licenses its own lead-safe renovation contractors. Hire a licensed contractor for that work.
If you plan to sell to a family with young children, or to an investor who will rent to one, a full deleading with a letter of compliance can make the house easier to sell. Price that into your budget early.
Springfield's building division issues permits for structural, electrical, plumbing and mechanical work. Massachusetts requires licensed electricians and plumbers, and buyers' inspectors will ask about permits for new systems.
Before any Massachusetts home is sold, the seller must get a certificate from the local fire department showing the smoke and carbon monoxide detectors meet code. Schedule that inspection early in your listing period so it does not hold up the closing.
Keep copies of every permit and final sign-off; the buyer's attorney and lender may ask for them.
New England winters slow roofing, siding, masonry and exterior paint, and a vacant house needs heat to protect the pipes. Many Springfield flippers aim to finish exterior work by late fall and list in spring, when buyer traffic is strongest.
If the house heats with oil, check the tank before closing and keep it filled through the winter. Converting to gas or a heat pump can help a listing stand out, but it adds time and budget.
Massachusetts closings are usually run by attorneys, and you will pay legal and title fees at purchase. At resale, the seller pays the deeds excise of $4.56 per $1,000 of the price in Hampden County. Add commissions and the buyer's requested repairs, and selling costs can take a meaningful share of your margin.
If the numbers are thin, a rental exit may be better than a sale.
Leave room in your budget for repair requests that come out of the buyer's inspection; older Springfield houses rarely pass without a list.
If the finished house rents well, refinance the flip loan into a DSCR loan that qualifies on the rent. In Springfield, that is especially common with two- and three-families. Make sure each unit meets the sanitary code and lead requirements before tenants move in. Our Springfield rate-and-term refinance page walks through that exit.
Many Springfield investors decide between sale and rental only after seeing the finished house and the rent comps.
LendingStreet makes business-purpose loans on non-owner-occupied investment property. Send the contract, rehab budget, resale comps and your experience through the form below, or call (877) 298-1001.
Some programs fund up to 90% of total cost and up to 100% of the rehab budget, depending on the project, the after-repair value and your experience.
In as little as 10 days once the file and attorney work are complete.
For renovation that disturbs paint in pre-1978 housing, use a contractor licensed for lead-safe renovation in Massachusetts.
Massachusetts requires sellers to get a certificate from the local fire department confirming smoke and carbon monoxide detectors meet code before the sale.
The seller, at $4.56 per $1,000 of the sale price in Hampden County.
Yes. Fix and flip loans cover 1-8 unit investment properties.
In draws after each phase of work is inspected. Interest is charged on what has been drawn.
Yes. Refinance into a DSCR loan once it is leased and the units meet code.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.