Main-Floor Structural Wall Removal & Complete Kitchen Modernization Fix & Flip

The Investor Scenario & Opportunity

A local real estate investor negotiated an off-market contract directly with a private seller for a two-story brick rowhouse in the Edmondson Village neighborhood of West Baltimore. Located near Edmondson Avenue and Route 40, the area offers quick transit links into Downtown Baltimore and the Social Security Administration headquarters, maintaining strong demand from entry-level buyers and local workforce families.

The seller was a tired landlord liquidating a vacant rental property with extensive deferred maintenance, obsolete utility fixtures, and compartmentalized interior walls. Seeking to avoid public market listings, open house walkthroughs, and broker commissions, the owner accepted an off-market purchase price of $85,000 in as-is condition. Fully renovated rowhouses on surrounding blocks featuring open-concept layouts were selling consistently around $185,000.

The Strategy & Capital Requirement

The primary challenge was settlement speed combined with cash flow preservation across active job sites. The seller established a strict seven business day closing requirement to settle outstanding municipal water utility bills and finalize personal obligations.

At the same time, the investor had capital deployed across an active rowhouse renovation project in nearby Irvington. To preserve adequate liquid reserves for trade contractor payroll and upcoming material orders 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 loan based on direct real estate equity and local sub-market sales comparables. Our internal underwriting team evaluated recent Edmondson Village rowhouse transactions within 24 hours, completely waiving traditional third-party appraisal requirements.

We issued a firm commitment letter and structured a $114,025 total loan facility, financing 90% of the purchase price ($76,500) and 100% of the construction budget ($37,525). 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 developer executed a 60-day targeted renovation program. The primary value-add strategy focused on removing main-floor load-bearing partition walls and completing a full kitchen overhaul. The investor allocated $15,000 of the $37,525 budget to install structural steel support beams, creating a fluid open-concept living and dining area. Another $13,500 funded a modernized kitchen featuring white shaker cabinetry, quartz countertops, and stainless steel appliances.

The remaining $9,025 covered a full bathroom refresh, refinished flooring, an electrical panel upgrade, and fresh interior paint. Removing interior walls and modernizing high-touch living spaces drove immediate buyer interest, yielding a full-price purchase agreement within six days of listing.

• Purchase Price: $85,000
• Rehab Budget: $37,525 (Structural wall removal, complete kitchen modernization, cosmetic updates)
• Financing & Holding Costs: $7,500
• Selling Costs (6%): $11,100
• Total Cost Basis & Expenses: $141,125
• Final Sale Price: $185,000
• Net Profit: $43,875

Key Takeaways for Local Investors

• Structural wall removals maximize rowhouse appeal. Eliminating partition walls on narrow main floors creates visual depth and elevates resale pricing in entry-level urban markets.
• Tired landlord sales require fast settlement. Partnering with a direct balance-sheet lender who guarantees closing in five business days enables investors to secure deep off-market discounts.
• 100% construction debt protects active cash flow. Structuring financing to cover total renovation draws keeps working capital available for concurrent development projects.

Need 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.