Main-Floor Structural Wall Removal & Custom Kitchen Centerpiece Fix & Flip

The Investor Scenario & Opportunity

An active local real estate investor identified an off-market single-family porch-front rowhouse in the Hampden neighborhood of North Baltimore. Situated near West 36th Street and within close proximity to the Johns Hopkins University Homewood campus, Hampden is a consistently strong residential sub-market that attracts young professionals, university staff, and first-time homebuyers.

The opportunity arose from a pre-foreclosure situation. The property owner fell behind on mortgage payments and faced an impending trustee foreclosure sale. The seller required an immediate cash payoff to satisfy default notices, avoid foreclosure on public record, and preserve remaining equity. The investor negotiated an off-market contract for $140,000 in as-is condition. Fully renovated rowhouses on neighboring streets featuring open main-floor layouts were selling consistently around $290,000.

The Strategy & Capital Requirement

The primary challenge was settlement speed combined with cash flow management across active job sites. The pre-foreclosure auction was scheduled in six business days, meaning any financing delay would result in the property proceeding to auction.

Additionally, the borrower had capital committed to an active full-gut renovation project in nearby Remington. To maintain adequate liquidity for subcontractor payroll and 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 using direct balance-sheet evaluation and local sub-market sales comparables. Our internal underwriting team evaluated recent Hampden rowhouse sales within 24 hours, completely eliminating third-party appraisal delays.

We issued a firm commitment letter and structured an $182,000 total loan facility, financing 90% of the purchase price ($126,000) and 100% of the construction budget ($56,000). Construction capital was held in escrow and released across three structured 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 structural wall removal on the main level to create an open-concept floor plan centered around a modern kitchen. The investor allocated $18,000 of the $56,000 budget to install structural steel LVL support beams and remove load-bearing partition walls between the living room, dining room, and kitchen. Another $16,000 was dedicated to building a custom kitchen featuring a central quartz island, modern cabinetry, and stainless steel appliances.

The remaining $22,000 funded a full bathroom refresh, refinished hardwood flooring, updated electrical fixtures, and fresh interior paint. Opening the main living space and creating a modern kitchen island generated competing offers within four days of market launch.

• Purchase Price: $140,000
• Rehab Budget: $56,000 (Structural wall removal, open kitchen island installation, interior cosmetics)
• Financing & Holding Costs: $11,000
• Selling Costs (6%): $17,400
• Total Cost Basis & Expenses: $224,400
• Final Sale Price: $290,000
• Net Profit: $65,600

Key Takeaways for Local Investors

• Open floor plans maximize rowhouse appeal. Removing structural walls on narrow main floors creates visual space and drives buyer demand in urban sub-markets.
• Pre-foreclosure acquisitions require fast settlement. Partnering with a lender who guarantees closing in five business days enables investors to solve default timelines for distressed owners.
• 100% construction debt maintains working capital. Financing total renovation draws keeps investor cash reserves available across multiple concurrent projects.

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