Fix & Flip in Baltimore, MD: Main-Floor Powder Room Addition & HVAC Installation

The Investor Scenario & Opportunity

A seasoned local investor contracted an off-market two-story brick rowhouse in the Remington neighborhood of North Baltimore. Situated near the Johns Hopkins Homewood campus and the R. House food hall corridor, Remington maintains high demand among young professionals and medical staff seeking modern starter homes.

The property was an estate sale offered by out-of-state heirs who required an un-contingent cash settlement within seven business days. The investor negotiated a purchase price of $90,000. Fully renovated rowhouses on nearby blocks featuring updated mechanical systems and main-level half-bathrooms were selling consistently near $195,000.

The Strategy & Capital Requirement

The primary challenge was funding speed combined with operational cash management. The investor was simultaneously managing two active fix-and-flip projects in Station North and Upper Fells Point. Tying up liquid capital in this acquisition would have constrained cash reserves needed for ongoing material orders and trade contractors across active job sites.

To maintain liquidity, the borrower required a direct loan facility that covered 90% of the purchase price and 100% of the renovation scope through an escrow draw structure.

The Henry Solution (Loan Mechanics & Underwriting)

Hard Money Henry underwrote the transaction based on real estate asset equity and local sub-market comparables. Our internal team completed a desktop evaluation of recent Remington sales within 24 hours, bypassing the delays of third-party appraisals.

We issued a firm commitment letter and structured a $121,604 total loan facility, financing 90% of the purchase price ($81,000) and 100% of the construction scope ($40,604). Renovation 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 strategy focused on adding a main-floor powder room and replacing old window units with a central climate control system. The investor allocated $11,000 of the $40,604 budget to build a modern half-bathroom under the main staircase, and $9,500 to install a brand-new high-efficiency HVAC system and ductwork.

The remaining funds covered interior paint, laminate flooring, updated lighting, and modern kitchen finishes. Adding a main-floor half-bath resolved a common rowhouse layout complaint, leading to a quick purchase agreement upon listing.

• Purchase Price: $90,000
• Rehab Budget: $40,604 (Main-floor powder room addition and full HVAC installation)
• Financing & Holding Costs: $8,000
• Selling Costs (6%): $11,700
• Total Cost Basis & Expenses: $150,304
• Final Sale Price: $195,000
• Net Profit: $44,696

Key Takeaways for Local Investors

• Main-floor powder rooms drive buyer conversion. Converting unused space beneath rowhouse staircases into a half-bathroom delivers high functional value and increases resale appeal.
• Escrowed construction funding protects active reserves. Financing 100% of renovation draws allows investors to expand deal volume without draining operational cash flow.
• In-house valuation enables fast estate acquisitions. Direct asset underwriting allows investors to guarantee seven-day closings on distressed estate inventory.

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