Fix & Flip in Baltimore, MD: Second Full Bathroom Addition & Electrical Upgrade

The Investor Scenario & Opportunity

A local real estate investor secured an off-market purchase contract for a two-story brick rowhouse in the Pigtown neighborhood of South Baltimore. Located near Washington Boulevard with direct access to Interstate 95, M&T Bank Stadium, and Downtown Baltimore, Pigtown offers consistent demand for updated entry-level housing options.

The property was acquired through a local wholesaler for $80,000. Surrounding renovated rowhouses featuring two full bathrooms were trading consistently around $180,000, presenting a solid margin for a targeted residential rehab.

The Strategy & Capital Requirement

The primary objective was rapid execution and capital preservation. The wholesaler assignment agreement contained a strict five business day funding window to finalize the contract.

Additionally, the investor was managing an active multi-family project in Charles Village and required a direct capital allocation that covered 90% of the purchase price and 100% of the construction scope. This structure preserved operational liquid cash reserves for ongoing subcontractor obligations on the active job site.

The Henry Solution (Loan Mechanics & Underwriting)

Hard Money Henry underwrote the loan based on real estate asset equity and local Pigtown comparables. Our underwriting team completed an in-house evaluation of recent sub-market sales within 24 hours, bypassing formal appraisal delays.

We issued a firm commitment letter and structured a $112,000 total loan facility, financing 90% of the purchase price ($72,000) and 100% of the renovation scope ($40,000). Construction funds were escrowed and disbursed across three structured draw inspections as work was completed. The deal funded and closed in five business days.

The Financial Win & Outcome

The investor completed a 45-day renovation. The primary value-add focus was installing a second full bathroom on the upper level and upgrading the electrical service. The investor allocated $12,500 of the $40,000 budget to convert an oversized closet space into a second full tile bathroom, and $6,000 to replace the outdated electrical panel with a modern 200-amp system.

The remaining funds covered fresh drywall, paint, laminate flooring, and kitchen improvements. Adding a second full bathroom eliminated a common single-bath buyer objection in Pigtown, leading to a quick purchase agreement upon listing.

• Purchase Price: $80,000
• Rehab Budget: $40,000 (Second bathroom addition and 200-amp electrical service upgrade)
• Financing & Holding Costs: $7,500
• Selling Costs (6%): $10,800
• Total Cost Basis & Expenses: $138,300
• Final Sale Price: $180,000
• Net Profit: $41,700

Key Takeaways for Local Investors

• Second bathroom additions increase resale appeal. Converting unused upper-level space into a second full bathroom removes buyer objections and lifts property valuation over single-bath rowhouses.
• Wholesaler assignments require fast capital execution. Partnering with a lender who guarantees closing in five business days enables investors to secure high-margin off-market opportunities.
• 100% construction financing preserves liquid reserves. Structuring debt to cover total renovation draws allows active investors to run multiple concurrent projects smoothly.

Planning a fix and flip or rowhouse renovation in Baltimore? Submit your property address at hardmoneyhenry.com/apply for a 24-hour commitment letter.