Primary Suite Expansion & Luxury Bathroom Remodel Fix & Flip

The Investor Scenario & Opportunity

A local real estate investor secured a single-family rancher directly from a downsizing senior homeowner in Elkton, Maryland. Located in Cecil County near the Delaware state border and Interstate 95, Elkton serves as a popular residential corridor for commuters working in Newark and Wilmington, Delaware.

The homeowner requested a private cash transaction to transition smoothly into a senior living facility without hosting public open houses or paying real estate brokerage fees. The seller agreed to an off-market purchase price of $170,000 in as-is condition. Fully renovated homes on surrounding suburban lots featuring updated primary suites and modern bathrooms were commanding resale prices near $360,000.

The Strategy & Capital Requirement

The primary challenge was settlement speed paired with capital allocation across multiple job sites. The seller established a strict seven business day closing requirement to secure placement at the care facility.

Simultaneously, the investor had working capital committed to an active single-family renovation in nearby Newark, Delaware. To preserve adequate cash flow for trade contractor payroll and upcoming material deliveries on that site, the borrower required a direct loan facility covering 90% of the purchase price and 100% of the renovation scope.

The Henry Solution (Loan Mechanics & Underwriting)

Hard Money Henry underwrote the transaction based on direct real estate equity and local sub-market sales comparables. Our internal underwriting team evaluated recent Elkton single-family sales within 24 hours, completely eliminating third-party appraisal delays.

We issued a firm commitment letter and structured a $234,500 total loan facility, financing 90% of the purchase price ($153,000) and 100% of the construction scope ($81,500). Construction funds were 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 investor completed a 60-day targeted renovation program. The primary value-add strategy focused on expanding the primary bedroom into a true primary suite and executing complete bathroom remodels throughout the home. The investor allocated $28,000 of the $81,500 budget to frame a walk-in closet and construct a luxury primary bathroom with double vanities and custom tile work. Another $18,000 funded a complete overhaul of the secondary full bathroom and main-level powder room.

The remaining $35,500 funded an open-concept kitchen overhaul with quartz countertops, modern cabinetry, durable vinyl plank flooring, fresh interior paint, and exterior landscaping. Creating a luxury primary suite and updating all bathrooms drove strong buyer demand, resulting in a full-price purchase contract within six days of listing.

• Purchase Price: $170,000
• Rehab Budget: $81,500 (Primary suite expansion, full bathroom remodeling, and interior cosmetics)
• Financing & Holding Costs: $15,000
• Selling Costs (6%): $21,600
• Total Cost Basis & Expenses: $288,100
• Final Sale Price: $360,000
• Net Profit: $71,900

Key Takeaways for Local Investors

• Bathroom remodels and primary suites drive suburban demand. Upgrading outdated bathrooms and creating dedicated primary suites yields high buyer engagement in commuter sub-markets.
• Direct senior seller acquisitions require guaranteed speed. Partnering with a direct balance-sheet lender who guarantees settlement in five business days allows investors to win clean off-market properties.
• 100% construction financing preserves active liquidity. Structuring loan packages to cover total renovation draws maintains working capital reserves across concurrent development sites.

Planning a single-family fix and flip or renovation project in Elkton or Cecil County? Submit your property address at hardmoneyhenry.com/apply for a 24-hour commitment letter.