Fix & Flip Bathroom Overhaul and Basement Finish

The Investor Scenario & Opportunity

A regional real estate investor identified an off-market two-story brick rowhouse in the Fishtown neighborhood of East Philadelphia. Positioned near Frankford Avenue with direct access to the Market-Frankford Line into Center City, the property sat in a high-demand sub-market driven by young professionals and medical staff seeking modern urban housing.

The home was an estate liquidation held by out-of-state beneficiaries who needed a rapid cash closing to settle estate distribution matters. The heirs listed the property for $175,000, contingent on a seven-day settlement. Fully renovated rowhouses on surrounding blocks with updated square footage and modern amenities were consistently selling near $345,000, presenting a strong value-add opportunity.

The Challenge (Why Banks Failed)

The property failed traditional retail bank underwriting criteria due to non-bankable interior conditions. A long-term plumbing leak from the second floor ruined plaster walls, destroyed subflooring in the upper bathroom, and allowed moisture to compromise the unfinished basement.

Conventional lenders required a 45-day underwriting process, complete utility activation, structural inspections, and a formal appraisal. The estate executor refused financing contingencies or closing extensions, threatening to sell to a competing cash buyer if funding could not be finalized within six days.

The Henry Solution (Loan Mechanics & Underwriting)

Hard Money Henry underwrote the transaction using direct asset valuation and local sub-market sales comps rather than institutional paperwork delays. Our underwriting team completed an in-house valuation of recent Fishtown rowhouse sales within 24 hours, bypassing formal appraisal delays.

We issued a firm commitment letter and structured a $223,670 total loan facility. This covered 90% of the purchase price ($157,500) and 100% of the renovation scope ($66,170). Construction funds were escrowed and disbursed across three structured draw releases as work was verified. The loan funded and closed in five business days.

The Financial Win & Outcome

The investor executed a focused 60-day renovation plan. A key strategy of the $66,170 budget involved allocating $15,000 to construct a luxury second-floor bath and $12,000 to dig out, waterproof, and finish the basement into a secondary living space with a powder room.

Adding finished lower-level square footage and a second bathroom transformed a basic two-bedroom floor plan into a multi-level living layout. This targeted improvement increased the property valuation over standard single-bath rowhouse comps, driving strong buyer competition and securing a fast sale.

• Purchase Price: $175,000
• Rehab Budget: $66,170 (Including bathroom overhaul and basement finish)
• Financing & Holding Costs: $12,800
• Total Cost Basis: $253,970
• Final Sale Price: $348,000
• Gross Profit: $94,030
• Net Profit (After Selling Costs): $73,150

Key Takeaways for Local Investors

• Basement finishes maximize urban square footage. Spending $12,000 to transform an unfinished lower level into functional living space adds usable square footage that pushes sale prices to the top of the neighborhood market.
• Dual-bathroom layouts command premium retail offers. Converting single-bath rowhouses to include a second bathroom removes a major buyer obstacle in high-demand sub-markets like Fishtown.
• 100% construction capital preserves operational cash. Securing total renovation funding keeps investor reserves intact for concurrent property acquisitions.

Looking to finance a fix and flip or rowhouse renovation in Philadelphia or Pennsylvania? Submit your property address at hardmoneyhenry.com/apply for a 24-hour commitment letter.