Single Family Property in Harrington - Fix & Flip

The Investor Scenario & Opportunity

A regional real estate investor identified an off-market single-family ranch home in Harrington, Delaware. Located in Kent County along the US Route 13 corridor with quick access to Dover and regional employer hubs, Harrington provides strong buyer demand for affordable, modern single-family housing.

The property was held by an out-of-state owner who required an immediate cash closing to liquidate the asset and resolve pending estate obligations. The owner listed the property for $140,000 on the condition of a five-day close. Nearby renovated homes with updated square footage were commanding sales prices near $280,000, creating strong profit margins for an investor capable of completing an efficient interior and exterior update.

The Challenge (Why Banks Failed)

The home was in non-bankable condition. A failed heating system, outdated wiring, deferred maintenance on the roof, and moisture damage in the unfinished basement made the property ineligible for standard agency or retail bank financing.

Conventional lenders required a 45-day underwriting window, full utility activation, and a formal interior appraisal inspection. The seller refused financing contingencies and declined closing extensions, threatening to sell to an competing cash buyer if funding could not be completed within six days.

The Henry Solution (Loan Mechanics & Underwriting)

Hard Money Henry underwrote the loan based on property equity and local sub-market comparables rather than traditional bank red tape. Our team completed an internal desktop evaluation of recent Harrington sales within 24 hours, bypassing third-party appraisal delays.

We issued a firm commitment letter and structured a $188,790 total loan package, covering 90% of the purchase price ($126,000) and 100% of the renovation scope ($62,790). The construction funds were held in escrow and disbursed across three draw disbursements as work milestones were inspected. The deal funded and closed in five business days.

The Financial Win & Outcome

The investor executed a targeted 75-day renovation. As part of the $62,790 budget, the investor allocated $4,200 specifically to rough in plumbing and construct a full full-suite bathroom in the basement. By converting an unused lower-level storage area into finished living space with a dedicated bathroom, the home added functional utility that boosted the final appraisal value significantly higher than standard three-bedroom, single-bath comps in the neighborhood.

• Purchase Price: $140,000
• Rehab Budget: $62,790 (Including $4,200 basement bathroom buildout)
• Financing & Holding Costs: $11,800
• Total Cost Basis: $214,590
• Final Sale Price: $285,000
• Gross Profit: $70,410
• Net Profit (After Selling Costs): $53,310

Key Takeaways for Local Investors

• High-ROI floor plan modifications drive equity gains. Spending $4,200 to add a full basement bathroom increased the overall finished space and generated an estimated $25,000 increase in final sale price over single-bath comps.
• Central Delaware sub-markets offer strong margins. Infill locations near major corridors like US Route 13 provide reliable end-buyer demand at attractive entry prices.
• 100% renovation capital preserves investor cash. Financing total construction costs keeps working capital free for unexpected scope changes or concurrent acquisitions.

Looking to finance a fix and flip or residential project in Harrington or Kent County? Submit your property address at hardmoneyhenry.com/apply for a 24-hour commitment letter.