Fix & Flip: Primary Suite Addition & Rear Floor Plan Reconfiguration

The Investor Scenario & Opportunity

An experienced regional investor secured an off-market wholesaler contract for a two-story brick rowhouse in the Cobbs Creek neighborhood of West Philadelphia. Positioned near Baltimore Avenue with convenient trolley access to University City and Center City, the property occupied an active residential sub-market seeing steady entry-level homebuyer demand.

The wholesaler required a rapid settlement to execute the assignment agreement. The investor negotiated a purchase price of $100,000. Fully renovated rowhouses on surrounding blocks with updated floor plans and multiple full bathrooms were consistently trading around $210,000, presenting a clear profit margin for a targeted renovation.

The Strategy & Capital Requirement

The primary objective was funding speed and capital preservation. The wholesaler contract carried a strict five business day closing mandate, along with a non-refundable deposit. Missing the timeline would cause the contract to default and pass to a competing investor.

In addition, the borrower had equity deployed across two active renovation sites in South Philadelphia. To maintain proper liquidity for payroll and ongoing operations, the borrower required a direct loan facility covering 90% of the purchase price and 100% of the renovation construction draws.

The Henry Solution (Loan Mechanics & Underwriting)

Hard Money Henry evaluated the opportunity using direct asset equity and local sub-market sales comparables. Our underwriting team completed an in-house evaluation of recent Cobbs Creek rowhouse transactions within 24 hours, bypassing third-party appraisal delays.

We issued a firm commitment letter and structured a $130,300 total loan facility. This financed 90% of the purchase price ($90,000) and 100% of the renovation scope ($40,300). Construction funds were escrowed and disbursed across three structured draw inspections as work milestones were completed. The transaction funded and closed in five business days.

The Financial Win & Outcome

The investor completed a 60-day targeted renovation. The primary value-add strategy focused on reconfiguring an awkward rear second-floor layout to construct a true primary suite. The investor allocated $16,000 of the $40,300 budget to reframe the rear bedroom, run new plumbing lines, and install a private tile bathroom.

The remaining budget funded interior cosmetics, including modern laminate flooring, fresh paint, updated lighting, and a refreshed kitchen setup. Adding a dedicated primary suite eliminated a common buyer objection in historical rowhouses, resulting in a full-price offer within eight days of listing.

• Purchase Price: $100,000
• Rehab Budget: $40,300 (Primary suite addition and floor plan reconfiguration)
• Financing & Holding Costs: $8,200
• Selling Costs (6%): $12,600
• Total Cost Basis & Expenses: $161,100
• Final Sale Price: $210,000
• Net Profit: $48,900

Key Takeaways for Local Investors

• Primary suite additions command top-tier pricing. Converting awkward upper-level rowhouse layouts into dedicated primary suites increases functional utility and accelerates retail sales velocity.
• Execution speed secures wholesale assignments. Partnering with a direct lender who guarantees capital delivery in five business days allows investors to lock down high-margin off-market deals.
• Full renovation financing preserves working liquidity. Structuring loans to fund total construction costs keeps investor capital free for ongoing active job sites.

Need direct hard money capital for a fix and flip or rowhouse renovation in Philadelphia? Submit your property address at hardmoneyhenry.com/apply for a 24-hour commitment letter.