Complete Bathroom Remodel & Modern Kitchen Overhaul Fix & Flip

The Investor Scenario & Opportunity

An active real estate investor identified an off-market two-story brick rowhouse in the Brooklyn neighborhood of South Baltimore. Located near Hanover Street and the Patapsco River waterfront, Brooklyn remains a popular affordable sub-market for entry-level buyers and local workers seeking easy commuting access into Downtown Baltimore and Anne Arundel County.

The opportunity originated through direct For Sale By Owner (FSBO) marketing. The seller had inherited the property in unbankable condition, featuring non-functional plumbing, an obsolete electrical system, and severely dated interior finishes. Retail mortgage buyers could not qualify for financing, prompting the seller to seek a fast cash buyer. The investor negotiated an off-market purchase price of $62,000 in as-is condition. Fully renovated rowhouses on surrounding blocks featuring updated kitchens and bathrooms were selling consistently around $145,000.

The Strategy & Capital Requirement

The core requirement was rapid funding combined with cash flow preservation across active development projects. The seller established a strict seven business day settlement window to finalize personal relocation plans.

At the same time, the investor had liquid capital committed to an active rowhouse renovation project in neighboring Cherry Hill. To maintain adequate working capital reserves for trade contractor payroll and material deposits on that site, the borrower required a direct loan facility that funded 90% of the purchase price and 100% of the construction scope.

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 Brooklyn rowhouse sales within 24 hours, completely eliminating traditional third-party appraisal delays.

We issued a firm commitment letter and structured an $88,320 total loan facility, financing 90% of the purchase price ($55,800) and 100% of the renovation scope ($32,520). Construction capital was 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 executed a 45-day targeted renovation program. The primary value-add strategy focused on a complete bathroom overhaul and a modernized kitchen buildout. The investor allocated $14,000 of the $32,520 budget to strip the upper-level bathroom down to the studs, replace internal plumbing lines, and install modern tile, fixtures, and a new vanity. Another $11,500 funded a kitchen renovation featuring white shaker cabinetry, quartz countertops, and stainless steel appliances.

The remaining $7,020 covered an electrical panel upgrade, vinyl plank flooring throughout the main level, and fresh interior paint. Delivering an upgraded bathroom and a modern kitchen generated immediate buyer competition, leading to a full-price purchase contract within five days of listing.

• Purchase Price: $62,000
• Rehab Budget: $32,520 (Complete bathroom overhaul, kitchen buildout, electrical panel upgrade)
• Financing & Holding Costs: $5,800
• Selling Costs (6%): $8,700
• Total Cost Basis & Expenses: $109,020
• Final Sale Price: $145,000
• Net Profit: $35,980

Key Takeaways for Local Investors

• Bathroom and kitchen upgrades drive entry-level sales. Renovating high-touch interior spaces creates maximum visual appeal and accelerates resale velocity in starter-home markets.
• Unbankable properties offer strong entry margins. Partnering with a lender who guarantees settlement in five business days allows investors to secure distressed FSBO assets at substantial discounts.
• 100% construction debt preserves working capital. Structuring loans to cover total renovation draws maintains investor liquidity across concurrent development projects.

Seeking direct hard money capital for 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.