The Investor Scenario & Opportunity
A local real estate investor sourced an off-market two-story brick rowhouse in the Highlandtown neighborhood of East Baltimore. Located near Eastern Avenue with immediate access to Patterson Park and the Johns Hopkins Bayview Medical Center campus, the property occupied a strong rental and resale pocket driven by healthcare personnel and young professionals.
The out-of-state property owner was facing mounting municipal tax liens and required a fast cash closing to prevent a tax sale. The seller agreed to a purchase price of $140,000 on the condition that funding occurred within seven days. With fully modernized rowhouses on neighboring blocks selling for $290,000 and higher, the deal offered substantial equity margin for an investor ready to execute a comprehensive interior rehab.
The Challenge (Why Banks Failed)
The asset was completely unbankable under conventional underwriting guidelines. Deferred maintenance had resulted in roof membrane deterioration, severe plaster damage on the upper floor, stripped electrical wiring, and non-functional heating equipment.
Traditional retail banks requested a minimum 45-day closing timeframe, full structural inspections, and a third-party appraisal report. The distressed seller refused financing contingencies and declined to grant extensions, threatening to sell to a competing cash buyer if the closing was delayed.
The Henry Solution (Loan Mechanics & Underwriting)
Hard Money Henry underwrote the loan using direct asset valuations and neighborhood comps rather than slow institutional procedures. Our underwriting team analyzed recent Highlandtown rowhouse sales internally within 24 hours, bypassing the delays of a formal third-party appraisal.
We issued a firm commitment letter and structured a $185,100 total loan facility. This covered 90% of the purchase price ($126,000) and 100% of the renovation scope ($59,100). Construction funds were held in escrow and released across three milestone-based draw inspections. Funding was fully completed in five business days.
The Financial Win & Outcome
The investor executed a 90-day renovation scope. Upgrades included replacing the flat roof membrane, installing a high-efficiency HVAC system, rewiring electrical panels, and updating the interior layout with modern open-concept living space and premium finishes. The completed home received multiple offers within the first week on the market.
- Purchase Price: $140,000
- Rehab Budget: $59,100
- Financing & Holding Costs: $11,500
- Total Cost Basis: $210,600
- Final Sale Price: $295,000
- Gross Profit: $84,400
- Net Profit (After Selling Costs): $66,700
Key Takeaways for Local Investors
- Off-market tax sales require speed. Sellers resolving municipal tax liens choose direct capital partners who guarantee rapid, non-contingent funding over higher bank-financed offers.
- Proximity to major medical centers secures buyer demand. Urban sub-markets surrounding medical anchors like Johns Hopkins Bayview provide rapid liquidation for turn-key flips.
- 100% renovation capital protects liquidity. Structuring loans to cover total construction costs keeps investor cash reserves free for concurrent acquisitions.
Planning your next fix and flip or bridge deal in Baltimore or Maryland? Submit your property address at hardmoneyhenry.com/apply for a 24-hour commitment letter.
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