Pennsylvania Single Family Property in Philadelphia Fix and Flip

The Investor Scenario & Opportunity

A local real estate investor secured an off-market, two-story brick rowhouse in the Port Richmond neighborhood of North Philadelphia. Positioned near the Richmond Street commercial corridor with quick transit access to Fishtown and Center City, the home sat in an expanding sub-market experiencing steady capital appreciation and strong demand from first-time retail buyers.

The property was an estate liquidation held by out-of-state beneficiaries. The heirs prioritized a fast cash sale to close out the estate, setting a purchase price of $170,000 contingent on funding within seven days. With fully renovated homes in the surrounding blocks selling above $330,000, the deal presented solid equity potential for a developer ready to execute a comprehensive renovation.

The Challenge (Why Banks Failed)

The rowhouse was non-bankable under conventional underwriting guidelines. Deferred maintenance had led to roof leaks, severe plaster deterioration, non-functional heating systems, and outdated electrical wiring.

Institutional lenders and traditional retail banks required a minimum of 45 days to process the application, alongside third-party appraisal delays and structural inspections. The estate representatives refused to accept financing contingencies or grant closing extensions, threatening to sell to a competing cash buyer if the deal did not fund within six days.

The Henry Solution (Loan Mechanics & Underwriting)

Hard Money Henry underwrote the transaction based on real estate asset value and direct sub-market sales comps rather than institutional red tape. Our internal underwriting team evaluated recent Port Richmond rowhouse sales within 24 hours, completely eliminating the appraisal delay.

We issued a firm commitment letter and structured a $218,760 loan package, covering 90% of the purchase price ($153,000) and 100% of the construction budget ($65,760). Renovation capital was escrowed and disbursed across four structured draw releases as work was inspected and verified. The loan funded and closed in five business days.

The Financial Win & Outcome

The investor executed a targeted 90-day renovation scope. To maximize end-buyer interest and push top-of-market pricing, the investor allocated $7,500 of the $65,760 rehab budget to construct a pilot house and private fiberglass roof deck. Offering clear views of the Center City skyline, this single improvement added significant emotional appeal and boosted the final valuation by an estimated $30,000 compared to non-deck comps on the block.

• Purchase Price: $170,000
• Rehab Budget: $65,760 (Including $7,500 roof deck buildout)
• Financing & Holding Costs: $12,500
• Total Cost Basis: $248,260
• Final Sale Price: $345,000
• Gross Profit: $96,740
• Net Profit (After Selling Costs): $76,040

Key Takeaways for Local Investors

• Strategic structural upgrades generate premium returns. Allocating $7,500 for a fiberglass roof deck added approximately $30,000 in perceived retail buyer value over standard rowhouses.
• Fast execution captures distressed off-market inventory. Estate sellers prioritize non-contingent direct capital partners over higher contingent retail offers.
• Full construction financing keeps reserves intact. Structuring loans to cover 100% of renovation costs preserves investor cash for active operational flexibility.

Planning a fix and flip or bridge project in Philadelphia or surrounding counties? Submit your property address at hardmoneyhenry.com/apply for a 24-hour commitment letter.