Primary Suite Expansion & Modern Utility Overhaul Fix & Flip

The Investor Scenario & Opportunity

An active real estate investor secured an off-market two-story brick rowhouse in the Park Heights neighborhood of Northwest Baltimore. Located near Sinai Hospital and the Pimlico redevelopment corridor, the sub-market offers strong demand from healthcare workers, local employees, and first-time buyers seeking affordable renovated homes.

The acquisition was driven by a corporate job relocation. The private seller accepted an out-of-state transfer on short notice and required an immediate cash purchase to finalize relocation without paying broker commissions or funding repairs. The investor negotiated an off-market purchase price of $95,000 in as-is condition. Fully renovated rowhouses on surrounding blocks featuring expanded primary suites and modernized utility systems were selling consistently around $205,000.

The Strategy & Capital Requirement

The primary challenge centered on settlement speed combined with liquid capital preservation across active job sites. The relocating seller established a strict seven business day closing deadline to settle funds and secure housing in their new employment city.

At the same time, the investor had working capital committed to an active rowhouse renovation project in nearby Coldstream Homestead Montebello. To preserve sufficient liquid reserves for trade contractor payroll and material deposits on that site, the borrower required a direct loan facility that funded 90% of the purchase price and 100% of the renovation 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 Park Heights rowhouse transactions within 24 hours, completely waiving traditional third-party appraisal requirements.

We issued a firm commitment letter and structured a $128,750 total loan facility, financing 90% of the purchase price ($85,500) and 100% of the construction budget ($43,250). 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 expanding the upper-level layout to create a dedicated primary suite and updating obsolete utility systems. The investor allocated $18,000 of the $43,250 budget to reconfigure upper-floor framing, construct a primary suite with a walk-in closet, and install a custom primary bathroom. Another $14,000 was dedicated to updating the electrical panel, re-piping plumbing lines, and installing a high-efficiency central heat pump.

The remaining $11,250 funded a modernized kitchen featuring white shaker cabinetry and quartz countertops, vinyl plank flooring, and fresh interior paint. Delivering an expanded primary suite and new utility systems drove strong buyer interest, leading to a full-price purchase contract within seven days of listing.

• Purchase Price: $95,000
• Rehab Budget: $43,250 (Primary suite expansion, utility overhaul, kitchen and bath refresh)
• Financing & Holding Costs: $8,000
• Selling Costs (6%): $12,300
• Total Cost Basis & Expenses: $158,550
• Final Sale Price: $205,000
• Net Profit: $46,450

Key Takeaways for Local Investors

• Primary suite additions elevate rowhouse market value. Reconfiguring second-floor layouts to include private primary suites drives strong buyer competition in urban residential markets.
• Job relocation sales demand guaranteed closing speed. Partnering with a direct balance-sheet lender who guarantees settlement in five business days allows investors to win motivated off-market deals.
• 100% construction debt preserves active capital. Structuring loans to cover total renovation draws maintains cash flow reserves across concurrent development projects.

Planning 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.