The Investor Scenario & Opportunity
A local real estate investor identified an off-market duplex in the Charles Village neighborhood of Baltimore, two blocks from the Johns Hopkins University Homewood Campus. The historic brick property had fallen into severe disrepair under long-term out-of-state ownership, featuring two vacant, non-functional rental units.
The seller needed to clear a lien deadline within five business days and agreed to take $140,000 for a rapid cash-equivalent sale. Given the strong rental and retail demand driven by university faculty and graduate students in Charles Village, fully renovated multi-family properties in the immediate radius consistently command valuations near $280,000.
The Challenge (Why Banks Failed)
The duplex was unbankable due to severe interior neglect. Both units lacked operational HVAC systems, the upper unit had active ceiling leaks from deteriorated roof flashing, and sub-panels contained recalled electrical components.
Conventional commercial lenders required a 60-day underwriting process, environmental reviews, and full interior appraisals. The seller refused to wait for traditional bank committee approvals, threatening to market the deal to competing cash buyers if funding was not secured immediately.
The Henry Solution (Loan Mechanics & Underwriting)
Hard Money Henry underwrote the asset directly using local market knowledge and recent neighborhood multi-family sales data. We waived the formal third-party appraisal requirement to eliminate unnecessary closing delays.
We issued a firm commitment letter within 24 hours and funded a $177,100 loan package covering 90% of the purchase price ($126,000) and 100% of the renovation scope ($51,100). Construction funds were escrowed and disbursed across three draw disbursements as work milestones were inspected and approved. The deal closed and funded in five business days.
The Financial Win & Outcome
The investor completed a full scope renovation over 75 days, installing separate sub-meters, new HVAC heat pumps, updated kitchens, and modern bathroom suites. The property was sold to an out-of-state investor seeking stabilized multi-family cash flow.
- Purchase Price: $140,000
- Rehab Budget: $51,100
- Financing & Holding Costs: $10,800
- Total Cost Basis: $201,900
- Final Sale Price: $282,000
- Gross Profit: $80,100
- Net Profit (After Selling Costs): $63,180
Key Takeaways for Local Investors
- University proximity stabilizes demand. Multi-family properties near major anchors like Johns Hopkins offer reliable exit liquidity for both turn-key sales and long-term hold strategies.
- Asset-based underwriting overcomes rigid bank hurdles. Working with a direct lender who understands sub-market comps avoids delays caused by unbankable property conditions.
- Full rehab financing preserves working capital. Structuring loans to cover 100% of construction draws ensures project momentum without draining liquidity.
Need direct financing for a multi-family project or fix and flip in Baltimore? Submit your property address at hardmoneyhenry.com/apply for a 24-hour commitment letter.
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