Primary Suite Addition & Luxury Bathroom Overhaul Fix & Flip

The Investor Scenario & Opportunity

An experienced real estate investor secured an off-market porch-front rowhouse in the Highlandtown neighborhood of East Baltimore. Located near Patterson Park, the Eastern Avenue retail district, and Johns Hopkins Bayview Medical Center, Highlandtown is a sought-after residential sub-market popular with medical professionals, corporate employees, and first-time buyers.

The acquisition resulted from a county tax lien sheriff auction. The court mandate required a strict cash settlement within seven business days to finalize title transfer and extinguish municipal tax liabilities. The investor secured the winning bid at $130,000 in as-is condition. Fully renovated rowhouses on surrounding blocks featuring dedicated upper-level primary suites were selling consistently around $280,000.

The Strategy & Capital Requirement

The core requirement was execution speed combined with active cash flow management. The sheriff auction terms established a strict five-to-seven business day funding window, with non-performance resulting in deposit forfeiture and re-auction.

At the same time, the investor had capital committed to an active full-gut renovation project in neighboring Canton. To maintain adequate liquidity for trade contractor payroll and material deposits on that active site, the borrower required a direct loan facility covering 90% of the purchase price and 100% of the construction draw budget.

The Henry Solution (Loan Mechanics & Underwriting)

Hard Money Henry underwrote the transaction based on direct real estate equity and local sub-market sales comparables. Our internal underwriting team evaluated recent Highlandtown rowhouse sales within 24 hours, completely eliminating third-party appraisal delays.

We issued a firm commitment letter and structured a $175,000 total loan facility, financing 90% of the purchase price ($117,000) and 100% of the construction budget ($58,000). Construction capital was held in escrow and disbursed across three structured draw inspections as work was completed. The transaction funded and closed in five business days.

The Financial Win & Outcome

The developer executed a 60-day targeted renovation program. The primary value-add strategy focused on reconfiguring the upper level to construct a dedicated primary suite with a custom en-suite bathroom. The investor allocated $24,000 of the $58,000 budget to expand the primary bedroom layout, frame a walk-in closet, run new plumbing lines, and build a primary bathroom with dual vanities and custom tile.

The remaining $34,000 funded a main-level open kitchen refresh with quartz countertops, modern cabinetry, refinished hardwood flooring, updated secondary bath fixtures, and fresh interior paint. Adding a luxury primary suite created a primary selling feature, generating competing offers within five days of market launch.

• Purchase Price: $130,000
• Rehab Budget: $58,000 (Primary suite addition, luxury bathroom overhaul, interior cosmetics)
• Financing & Holding Costs: $11,200
• Selling Costs (6%): $16,800
• Total Cost Basis & Expenses: $216,000
• Final Sale Price: $280,000
• Net Profit: $64,000

Key Takeaways for Local Investors

• Primary suite additions command premium prices. Reconfiguring upper-level rowhouse floor plans to include dedicated primary suites drives buyer interest and elevates sub-market appraisals.
• Tax lien auction wins require guaranteed capital delivery. Partnering with a direct balance-sheet lender who guarantees settlement in five business days protects auction deposits and secures distressed assets.
• 100% construction debt maintains working capital. Structuring loans to fund complete renovation draws keeps investor cash flow liquid across concurrent development projects.

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