The Investor Scenario & Opportunity
A regional real estate investor identified an off-market single-family home in Clairton, Pennsylvania, located in the Monongahela Valley south of Pittsburgh. Positioned with direct access to Route 51 and the West Mifflin retail corridor, the property sits in a sub-market attracting buyers seeking affordable housing options within commuting distance of Downtown Pittsburgh.
The property was an out-of-state inheritance that had been sitting vacant for several years. The heirs prioritized an immediate, un-contingent cash sale to close out estate accounts, listing the home for $110,000. With fully renovated brick single-family homes in the immediate neighborhood selling between $240,000 and $260,000, the deal offered strong equity potential for an investor able to execute a fast close.
The Challenge (Why Banks Failed)
The home was in an unbankable state of disrepair. A long-standing roof leak destroyed upper-level plaster and ceiling joists, while vintage knob-and-tube wiring and a non-functional boiler made the structure ineligible for conventional mortgage products.
Institutional lenders required a 45-day closing window, full utility restoration, and a formal appraisal inspection. The estate representatives refused to enter a contract with financing contingencies or extended timelines, setting a hard six-day deadline to fund before opening negotiations with local cash buyers.
The Henry Solution (Loan Mechanics & Underwriting)
Hard Money Henry evaluated the deal based on real estate fundamentals and Allegheny County sales comps rather than institutional protocol. Our underwriting team completed an internal valuation within 24 hours, bypassing the typical appraisal delay.
We issued a firm commitment letter and structured a $166,005 total loan, covering 90% of the purchase price ($99,000) and 100% of the renovation budget ($67,005). The construction funds were secured in escrow and allocated across three milestone-based draw releases. We completed underwriting, closing docs, and funding in five business days.
The Financial Win & Outcome
The investor executed a comprehensive 90-day renovation scope. Work included installing a new architectural shingle roof, replacing electrical service, adding central HVAC, and completing full interior cosmetics with modern flooring, cabinets, and bathroom upgrades. The completed home hit the market and closed quickly with a qualified buyer.
- Purchase Price: $110,000
- Rehab Budget: $67,005
- Financing & Holding Costs: $9,800
- Total Cost Basis: $186,805
- Final Sale Price: $252,000
- Gross Profit: $65,195
- Net Profit (After Selling Costs): $50,075
Key Takeaways for Local Investors
- Sub-market entry prices yield solid margins. Industrial and suburban pockets surrounding Pittsburgh like Clairton allow investors to secure high-equity deals with lower capital requirements.
- Fast execution beats higher offers. Sellers resolving estate matters consistently choose lenders who guarantee quick, non-contingent closings over traditional bank pre-approvals.
- 100% construction financing preserves operational flexibility. Structuring your loan to cover total rehab costs allows you to retain liquid reserves for concurrent acquisitions.
Planning a fix and flip or bridge project in Clairton or the Greater Pittsburgh area? Submit your property address at hardmoneyhenry.com/apply for a 24-hour commitment letter.
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