Attached Garage Conversion & Modern Kitchen Buildout Fix & Flip

The Investor Scenario & Opportunity

An active real estate investor secured an off-market single-family home in Hyattsville, Maryland. Located in Prince George's County near the Gateway Arts District and the West Hyattsville Metro station, the location offers strong demand from young professionals and government workers commuting into Washington, DC and College Park.

The acquisition stemmed from a corporate partner dissolution. Two business partners owning the property as a vacant rental decided to dissolve their partnership and required an immediate cash liquidation to settle joint accounts without ongoing holding expenses. The investor negotiated an off-market purchase price of $150,000 in as-is condition. Fully renovated single-family homes in the surrounding neighborhood featuring expanded living space and updated floor plans were selling consistently near $305,000.

The Strategy & Capital Requirement

The primary challenge was settlement speed combined with cash flow management across active projects. The dissolution agreement dictated a strict six business day settlement window to execute the transaction before court-ordered asset arbitration would begin.

In addition, the borrower had equity tied up in an active renovation project in nearby Silver Spring. To preserve sufficient liquid cash reserves for trade contractor payroll and material deposits on that site, the investor required a direct capital partner capable of closing in five business days while funding 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 real estate equity and local sub-market sales comparables. Our internal underwriting team evaluated recent Hyattsville single-family sales within 24 hours, completely waiving third-party appraisal requirements.

We issued a firm commitment letter and structured a $196,000 total loan facility, financing 90% of the purchase price ($135,000) and 100% of the renovation scope ($61,000). 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 developer executed a 60-day targeted renovation program. The core value-add strategy focused on converting an underutilized attached single-car garage into a main-level primary bedroom suite and opening the kitchen layout. The investor allocated $22,000 of the $61,000 budget to frame, insulate, pipe, and wire the garage conversion into a private primary suite with an en-suite bathroom. Another $20,000 funded an open-concept kitchen buildout featuring custom cabinetry, quartz countertops, and stainless steel appliances.

The remaining $19,000 covered refinished flooring, updated secondary bathroom fixtures, fresh interior paint, and exterior landscaping. Expanding the functional living area generated immediate buyer interest, leading to a full-price purchase contract within seven days of listing.

• Purchase Price: $150,000
• Rehab Budget: $61,000 (Garage conversion to primary suite, open kitchen buildout, cosmetic updates)
• Financing & Holding Costs: $12,500
• Selling Costs (6%): $18,300
• Total Cost Basis & Expenses: $241,800
• Final Sale Price: $305,000
• Net Profit: $63,200

Key Takeaways for Local Investors

• Garage conversions maximize functional square footage. Transforming unused garage space into primary bedroom suites increases usable living area and elevates resale values in suburban sub-markets.
• Partner dissolutions demand guaranteed closing speed. Partnering with a direct balance-sheet lender who guarantees settlement in five business days enables investors to solve corporate liquidations cleanly.
• 100% construction debt maintains working capital. Structuring loans to cover total renovation draws keeps investor capital free for concurrent active projects.

Planning a single-family fix and flip or garage conversion in Hyattsville or Prince George's County? Submit your property address at hardmoneyhenry.com/apply for a 24-hour commitment letter.