Baltimore Single Family Property - Fix and Flip Loan

The Investor Scenario & Opportunity

A seasoned local real estate investor identified a distressed historic three-unit apartment building in the Federal Hill neighborhood of South Baltimore. Located near Light Street and within walking distance of the Inner Harbor and MARC train transit, Federal Hill commands strong rental and homebuyer demand among medical professionals and urban commuters.

The seller was an out-of-state estate trust seeking a swift liquidation to satisfy probate distribution requirements, pricing the property at $350,000. Comparable three-unit residential assets on neighboring blocks were commanding post-renovation market values above $640,000, presenting a substantial profit margin for an investor equipped to fund and execute a major rehab project quickly.

The Challenge (Why Banks Failed)

The property failed standard institutional commercial lending guidelines due to severe deferred maintenance. Water penetration through a failing flat roof destroyed plaster ceiling structures in the top-floor unit, while outdated mechanical systems, un-metered utility setups, and non-functional electrical sub-panels made the building unbankable.

Conventional commercial banks requested a 60-day underwriting timeframe, complete environmental reviews, and third-party appraisal inspections. The estate trust refused to accept financing contingencies or extended timelines, establishing a strict six-day closing deadline before placing the building on the open market.

The Henry Solution (Loan Mechanics & Underwriting)

Hard Money Henry evaluated the opportunity using asset equity and local sub-market sales data rather than institutional red tape. Our underwriting team completed an internal desktop valuation of recent Federal Hill multi-family sales within 24 hours, waiving the third-party appraisal requirement.

We issued a firm commitment letter and structured a $433,025 total loan package, covering 90% of the purchase price ($315,000) and 100% of the renovation scope ($118,025). Renovation capital was placed in escrow and managed through a four-stage draw schedule as construction milestones were inspected and verified. The loan funded and closed in five business days.

The Financial Win & Outcome

The investor executed a four-month rehabilitation scope. Upgrades included flat roof replacement, installing independent high-efficiency HVAC systems, sub-metering utilities, and updating kitchens and bathrooms across all three units. The stabilized building was sold to a regional buy-and-hold private investor.

• Purchase Price: $350,000
• Rehab Budget: $118,025
• Financing & Holding Costs: $24,500
• Total Cost Basis: $492,525
• Final Sale Price: $655,000
• Gross Profit: $162,475
• Net Profit (After Selling Costs): $123,175

Key Takeaways for Local Investors

• Urban multi-family assets offer reliable exit routes. Sub-markets near core employment hubs like South Baltimore ensure steady demand from turn-key buyers and investors.
• Direct asset underwriting overcomes property condition barriers. Evaluating deals based on real estate value allows sponsors to secure distressed assets traditional banks refuse to finance.
• 100% renovation capital preserves liquidity. Structuring loans that finance total construction costs keeps investor cash reserves free for simultaneous opportunities.

Have a multi-family or fix and flip project in Baltimore that requires fast capital? Submit your property address at hardmoneyhenry.com/apply for a 24-hour commitment letter.