Fix & Flip in Baltimore: Custom Kitchen Island & Modern Bath Overhaul

The Investor Scenario & Opportunity

An active real estate investor sourced an off-market two-story brick rowhouse in the Highlandtown neighborhood of East Baltimore. Located near Eastern Avenue and Patterson Park, the property sat in an established residential sub-market with high demand for move-in ready starter homes.

The seller was an out-of-state tired landlord offloading non-performing rental inventory with severe deferred maintenance. The property was in an unbankable condition, featuring non-functional plumbing and an outdated electrical panel. The investor negotiated an off-market purchase price of $103,000 on the condition of an immediate cash close without repairs or appraisal contingencies. Fully renovated rowhouses on surrounding blocks were selling consistently around $220,000.

The Strategy & Capital Requirement

The primary challenge was funding speed combined with liquidity management across concurrent job sites. The seller required a guaranteed five business day closing window to satisfy outstanding property tax obligations before the end of the month.

In addition, the borrower had equity committed to two ongoing projects in nearby Canton. To preserve liquid cash reserves for subcontractor payroll and material orders on active sites, the investor required a direct loan facility that funded 90% of the purchase price and 100% of the renovation construction draws.

The Henry Solution (Loan Mechanics & Underwriting)

Hard Money Henry evaluated the opportunity using direct balance-sheet underwriting and local sub-market sales comparables. Our internal underwriting team evaluated recent Highlandtown rowhouse sales within 24 hours, completely waiving third-party appraisal requirements.

We issued a firm commitment letter and structured a $135,700 total loan facility, financing 90% of the purchase price ($92,700) and 100% of the renovation budget ($43,000). Construction capital was held in escrow and released across three milestone draw inspections as work was completed. The transaction funded and closed in five business days.

The Financial Win & Outcome

The investor executed a 60-day renovation plan. The primary value-add strategy focused on modernizing the kitchen layout and updating the main bathroom. The investor allocated $18,000 of the $43,000 budget to open the kitchen wall, install custom shaker cabinetry, build a central island with quartz countertops, and add stainless steel appliances. Another $12,000 funded a complete bathroom overhaul featuring custom tile work and updated fixtures.

The remaining funds covered fresh drywall, paint, durable laminate flooring, and a panel upgrade. Modernizing the kitchen and bathroom eliminated primary buyer objections, resulting in a full-price purchase contract within nine days of listing.

• Purchase Price: $103,000
• Rehab Budget: $43,000 (Custom kitchen island, bath modernization, and interior cosmetics)
• Financing & Holding Costs: $8,500
• Selling Costs (6%): $13,200
• Total Cost Basis & Expenses: $167,700
• Final Sale Price: $220,000
• Net Profit: $52,300

Key Takeaways for Local Investors

• Kitchen modernizations drive sales velocity. Creating open kitchen layouts with functional islands delivers high visual impact and shortens days on market in historic rowhouses.
• Fast execution secures tired landlord deals. Partnering with a lender who guarantees closing in five business days enables investors to negotiate deep discounts on neglected inventory.
• 100% construction debt preserves working capital. Structuring loans to fund total renovation draws keeps investor cash reserves liquid across multiple active projects.

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