Complete Bathroom Overhaul & Modern Kitchen Buildout Fix & Flip

The Investor Scenario & Opportunity

A local real estate investor secured an off-market two-story brick rowhouse in the Gwynns Falls neighborhood of West Baltimore. Located near West Pratt Street and Gwynns Falls Park, the property occupied an affordable residential corridor attracting first-time homebuyers and local commuters requiring convenient access to Downtown Baltimore and Saint Agnes Hospital.

The acquisition originated from direct investor marketing. The private owner responded to a direct mail campaign seeking a fast cash sale in as-is condition to avoid real estate broker commissions and expensive pre-sale repairs. The investor negotiated an off-market purchase price of $95,000. Fully renovated rowhouses on neighboring blocks featuring modernized kitchens and updated bathrooms were selling consistently around $200,000.

The Strategy & Capital Requirement

The primary challenge centered on settlement speed and liquid capital preservation across active projects. The seller required a guaranteed seven business day settlement window to clear personal obligations and relocate.

At the same time, the investor had capital committed to an active full-gut renovation project in nearby Violetville. To maintain sufficient cash reserves for trade contractor payroll and material deposits on that active job 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 loan using direct real estate equity and local sub-market sales comparables. Our internal underwriting team evaluated recent Gwynns Falls rowhouse sales within 24 hours, completely waiving third-party appraisal requirements.

We issued a firm commitment letter and structured a $125,013 total loan facility, financing 90% of the purchase price ($85,500) and 100% of the renovation scope ($39,513). Construction funds were 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 developer completed a 60-day targeted renovation program. The primary value-add strategy focused on a complete bathroom overhaul and a modern kitchen buildout. The investor allocated $15,000 of the $39,513 budget to strip the second-floor bathroom to the studs, installing new plumbing lines, custom subway tiling, double vanities, and modern fixtures. Another $14,000 funded a main-level kitchen update with white shaker cabinetry, quartz countertops, and stainless steel appliances.

The remaining $10,513 covered refinished hardwood flooring, fresh interior paint, an updated electrical panel, and new lighting fixtures throughout. Modernizing the interior finishes eliminated primary buyer objections, resulting in a full-price purchase contract within eight days of listing.

• Purchase Price: $95,000
• Rehab Budget: $39,513 (Full bathroom overhaul, modern kitchen buildout, cosmetic updates)
• Financing & Holding Costs: $8,000
• Selling Costs (6%): $12,000
• Total Cost Basis & Expenses: $154,513
• Final Sale Price: $200,000
• Net Profit: $45,487

Key Takeaways for Local Investors

• Modernized kitchens and bathrooms drive starter-home sales. Focusing renovation capital on high-touch interior spaces accelerates buyer competition in accessible urban markets.
• Direct seller marketing creates high-margin deals. Partnering with a lender who guarantees closing in five business days allows investors to win clean off-market acquisitions.
• 100% construction financing protects active cash flow. Structuring loan packages to cover total renovation draws keeps working capital available for concurrent developments.

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.