The Investor Scenario & Opportunity
A local real estate investor contracted an off-market brick porch-front rowhouse in the Belair-Edison neighborhood of Northeast Baltimore. Positioned near Erdman Avenue with straightforward access to Interstate 95 and Downtown Baltimore, Belair-Edison offers stable demand for affordable, modern starter homes among first-time retail buyers.
The home was an estate liquidation that had been vacant for two years. The heirs required an immediate cash-equivalent sale to settle probate obligations, pricing the property at $110,000 for a five-day close. Updated rowhouses on surrounding streets were selling between $220,000 and $230,000, presenting a clean cosmetic rehab opportunity for an investor focused on rapid execution.
The Challenge (Why Banks Failed)
The property failed traditional bank underwriting standards due to minor deferred maintenance and unbankable kitchen conditions. The original 1950s metal cabinetry was rusted, plumbing lines were disconnected, and the interior lacked basic kitchen appliances.
Conventional mortgage lenders required a 45-day processing window, full utility activation, and a formal appraisal inspection. The estate representative refused to enter a contract with financing contingencies or extended timelines, setting a strict five-day funding deadline before taking the property to competing cash investors.
The Henry Solution (Loan Mechanics & Underwriting)
Hard Money Henry underwrote the loan based on real estate fundamentals and sub-market comps rather than bank paperwork. Our internal underwriting team evaluated recent Belair-Edison sales within 24 hours, completely waiving third-party appraisal delays.
We issued a firm commitment letter and funded a $138,140 loan package, covering 90% of the purchase price ($99,000) and 100% of the renovation scope ($39,140). Construction funds were escrowed and disbursed across two streamlined draw releases. The transaction closed and funded in five business days.
The Financial Win & Outcome
The investor executed a rapid 45-day light renovation. A central focus of the $39,140 scope was a targeted $12,500 kitchen modernization. The investor opened up the wall separating the kitchen and dining area, installing soft-close white shaker cupboards, durable quartz countertops, a subway tile backsplash, and a modern stainless steel appliance package.
This high-visibility upgrade turned an outdated floor plan into a bright, open space, driving top-of-market buyer interest and securing a contract within six days of listing.
- Purchase Price: $110,000
- Rehab Budget: $39,140 (Including $12,500 kitchen overhaul)
- Financing & Holding Costs: $8,500
- Total Cost Basis: $157,640
- Final Sale Price: $228,000
- Gross Profit: $70,360
- Net Profit (After Selling Costs): $56,680
Key Takeaways for Local Investors
- Targeted kitchen upgrades yield maximum ROI. Allocating budget toward modern quartz counters, shaker cupboards, and open-concept layouts drives retail buyer emotional decisions and lifts appraisal values over non-renovated comps.
- Fast cosmetic flips reduce holding costs. Limiting project scope to high-impact cosmetic work shortens project timelines to under two months, preserving net profits.
- Full construction financing keeps reserves intact. Structuring loans to cover 100% of rehab capital ensures capital is available for uninterrupted project execution.
Planning a light fix and flip or rehab project in Baltimore or Maryland? Submit your property address at hardmoneyhenry.com/apply for a 24-hour commitment letter.
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