The Investor Scenario & Opportunity
A local buy and hold investor identified an off-market single-family porch-front rowhouse in the Remington neighborhood of Central Baltimore. Situated blocks from the R. House food hall and short distance from Johns Hopkins University, Remington has seen strong rental demand from young professionals and healthcare workers.
The property was owned by an absentee estate that needed to liquidate the asset immediately to settle internal family disputes. The heirs set an aggressive cash sale price of $130,000, contingent on a closing time of under seven days. Comparable renovated rental properties on surrounding streets were appraising at $275,000 and commanding premium monthly rents.
The Challenge (Why Banks Failed)
The property had been vacant for three years, resulting in significant interior damage. Frozen pipes had burst during a previous winter, ruining subfloors, destroying plaster walls, and compromising the main electrical panel.
Conventional lenders refused the loan request due to non-functioning utilities and severe habitability issues. Additionally, retail financial institutions required a minimum of 45 days to complete underwriting and third-party appraisal reports. Waiting on traditional bank approvals would have defaulted the purchase contract and cost the investor a high-equity addition to their rental portfolio.
The Henry Solution (Loan Mechanics & Underwriting)
Hard Money Henry underwrote the loan using asset equity and local market comps rather than traditional institutional delays. Our team performed an immediate desktop valuation of recent Remington rowhouse sales, allowing us to bypass third-party appraisal hold-ups.
We issued a firm commitment letter within 24 hours of receiving the purchase contract. We structured a total loan facility of $170,413, representing 90% of the purchase price ($117,000) plus 100% of the required renovation budget ($53,413). Construction funds were held in escrow and released across three milestone draws as work was verified. The loan funded and closed in five business days.
The Financial Win & Outcome
The investor completed a full gut renovation over 60 days, adding modern finishes, updated MEP systems, and dedicated laundry facilities. Upon completion, the property was leased to long-term tenants at $1,950 per month.
- Total Hard Money Payoff: $170,413
- Appraised Value (Post-Rehab): $275,000
- DSCR Refinance Amount (75% LTV): $206,250
- Net Cash Out at Refinance: $35,837 (Covered initial investor capital down payment plus closing costs)
- Monthly Rental Cash Flow: $580 per month net after PITI debt service
Key Takeaways for Local Investors
- BRRRR strategy builds long-term wealth without tied-up capital. Refinancing into a long-term DSCR loan at 75% LTV allows investors to pull all initial equity back out while retaining cash-flowing assets.
- Rapid execution secures high-equity deals. Sellers with immediate timelines will take lower purchase offers from buyers who guarantee fast fundings.
- Asset-based underwriting overcomes property condition hurdles. Partnering with direct lenders focused on after-repair value allows you to acquire unbankable properties that conventional banks reject.
Have a BRRRR or fix and flip project in Baltimore that needs fast funding? Submit your deal address at hardmoneyhenry.com/apply for a 24-hour commitment letter.
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