Complete Bathroom Remodel & High-Efficiency HVAC Upgrade Fix & Flip

The Investor Scenario & Opportunity

A local real estate investor negotiated an off-market contract for a two-story brick rowhouse in the Pigtown neighborhood of South Baltimore. Positioned near Washington Boulevard, M&T Bank Stadium, and the University of Maryland BioPark, Pigtown remains a strong entry-level market popular with healthcare staff, young professionals, and commuters into Downtown Baltimore.

The deal originated from an estate probate liquidation. Out-of-state heirs needed to liquidate the asset quickly to settle estate liabilities and complete probate distributions. The property had sat vacant for several years, suffering from severe plumbing leaks and an outdated heating infrastructure. The investor locked in a purchase price of $102,500 in as-is condition. Fully renovated rowhouses on surrounding blocks with updated bathrooms and modern central air systems were selling consistently around $220,000.

The Strategy & Capital Requirement

The primary challenge was settlement speed combined with active cash flow management. The probate court imposed a tight settlement deadline, requiring full payment within seven business days to execute court-approved heir distributions.

At the same time, the investor had equity deployed across an active full-gut renovation in nearby Federal Hill. To preserve adequate liquid reserves for subcontractor payroll and upcoming material orders on that site, the borrower needed a direct capital partner capable of closing in five business days while funding 90% of the purchase price and 100% of the renovation scope.

The Henry Solution (Loan Mechanics & Underwriting)

Hard Money Henry underwrote the loan using direct real estate equity and local sub-market sales comparables. Our internal team evaluated recent Pigtown rowhouse sales within 24 hours, completely eliminating the delays associated with third-party appraisals.

We issued a firm commitment letter and structured a $135,250 total loan facility, financing 90% of the purchase price ($92,250) and 100% of the construction scope ($43,000). Construction funds were held in escrow and released across three structured draw disbursements as work milestones were inspected and verified. The transaction funded and closed in five business days.

The Financial Win & Outcome

The developer completed a 60-day targeted renovation program. The primary value-add strategy focused on a complete bathroom overhaul and installing a new high-efficiency heat pump system. The investor allocated $16,000 of the $43,000 budget to convert the existing outdated bathroom into a modern tiled space with custom fixtures and double vanities. Another $15,000 funded a full ductless mini-split HVAC installation to provide efficient central heating and cooling throughout the home.

The remaining $12,000 covered open-concept main floor framing, new kitchen cabinetry, quartz countertops, vinyl plank flooring, and fresh interior paint. Delivering modern climate control and an upgraded bathroom removed key buyer objections, resulting in a full-price purchase agreement within ten days of listing.

• Purchase Price: $102,500
• Rehab Budget: $43,000 (Full bathroom remodel, high-efficiency HVAC installation, kitchen update)
• Financing & Holding Costs: $8,500
• Selling Costs (6%): $13,200
• Total Cost Basis & Expenses: $167,200
• Final Sale Price: $220,000
• Net Profit: $52,800

Key Takeaways for Local Investors

• Bathroom upgrades and modern HVAC add high visual and functional value. Upgrading obsolete heating systems to modern central air eliminates major inspection issues and accelerates resale velocity.
• Probate estate sales demand guaranteed execution speed. Partnering with a lender who guarantees closing in five business days allows investors to win clean off-market estate liquidations.
• 100% construction debt maintains project cash flow. Financing total renovation draws keeps investor capital available across concurrent active developments.

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.