Rear Multi-Tier Deck & Luxury Gourmet Kitchen Upgrade Fix & Flip

The Investor Scenario & Opportunity

A seasoned real estate investor identified an off-market opportunity in the Locust Point neighborhood of South Baltimore. Situated on a historic waterfront peninsula near Fort McHenry and Latrobe Park, Locust Point is a premier sub-market seeing strong demand from healthcare workers, maritime professionals, and corporate commuters.

The acquisition resulted from a maturing private note workout. The property owner defaulted on an existing short-term debt obligation and faced an impending private foreclosure action. The seller required a fast cash settlement within seven business days to satisfy the lender payoff and exit the property with remaining equity. The investor negotiated an off-market purchase price of $210,000. Fully renovated rowhouses on surrounding blocks with luxury kitchen spaces and private outdoor decks were commanding valuations near $450,000.

The Strategy & Capital Requirement

The primary challenge centered on settlement speed combined with capital allocation across multiple active sites. The private note payoff deadline mandated settlement within seven business days, and any delay would trigger formal foreclosure proceedings.

In addition, the borrower had capital active in an ongoing full-gut renovation in nearby Canton. To maintain sufficient liquidity for trade contractor payroll and material deposits on that active job site, the borrower required a direct loan facility covering 90% of the purchase price and 100% of the construction draw budget.

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 Locust Point rowhouse sales within 24 hours, waiving traditional third-party appraisal requirements.

We issued a firm commitment letter and structured a $288,800 total loan facility, financing 90% of the purchase price ($189,000) and 100% of the construction scope ($100,200). Construction capital was held in escrow and released across four milestone draw inspections as work was completed. The transaction funded and closed in five business days.

The Financial Win & Outcome

The developer completed a 75-day comprehensive renovation program. The primary value-add strategy focused on building a rear multi-tier composite deck and expanding the main-level kitchen into a luxury gourmet layout. The investor allocated $38,000 of the $100,200 budget to frame and construct a multi-level rear composite deck, and $35,000 to open main-floor walls, install custom inset cabinetry, fit commercial-grade appliances, and install a central quartz island.

The remaining $27,200 funded full interior drywall, plumbing line replacements, modern bathroom tiling, refinished hardwood floors, and fresh exterior paint. Delivering high-end outdoor entertaining space and a modern chef kitchen generated multiple competing offers, resulting in a full-price purchase agreement within five days of listing.

• Purchase Price: $210,000
• Rehab Budget: $100,200 (Multi-tier composite deck, gourmet kitchen expansion, full interior updates)
• Financing & Holding Costs: $18,000
• Selling Costs (6%): $27,000
• Total Cost Basis & Expenses: $355,200
• Final Sale Price: $450,000
• Net Profit: $94,800

Key Takeaways for Local Investors

• Outdoor decks and gourmet kitchens command premium prices. Adding multi-level outdoor living spaces and high-end kitchen islands maximizes appraisal value and accelerates buyer competition in waterfront urban pockets.
• Maturing debt acquisitions require guaranteed speed. Partnering with a direct balance-sheet lender who guarantees settlement in five business days enables investors to solve complex debt workouts for distressed sellers.
• 100% renovation debt protects working liquidity. Structuring loan packages to fund total construction draws keeps capital reserves available for concurrent active developments.

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