Fix & Flip Primary Suite Addition & Open-Concept Conversion

The Investor Scenario & Opportunity

A real estate investor contracted an off-market single-family rancher in Severn, Maryland. Located in Anne Arundel County near Fort Meade and the NSA headquarters, the property occupied a high-demand suburban sub-market driven by military personnel and government contractors seeking updated move-in ready housing.

The acquisition stemmed from a divorce liquidation. The co-owners required an immediate cash transaction without contingencies or public open houses to divide marital assets and resolve shared debt obligations cleanly. The seller agreed to a purchase price of $160,000. Comparable renovated homes in the immediate neighborhood featuring updated primary suites were trading consistently near $325,000.

The Strategy & Capital Requirement

The primary objective was funding speed coupled with liquidity preservation. The divorce settlement agreement established a strict six-day settlement window before court-ordered listing mandates would take effect.

Additionally, the borrower had equity deployed in an active renovation project in nearby Glen Burnie. Tying up liquid cash in this purchase would have constrained working capital required for active contractor payroll. The investor needed a direct capital partner capable of funding 90% of the purchase price and 100% of the construction scope within five business days.

The Henry Solution (Loan Mechanics & Underwriting)

Hard Money Henry underwrote the transaction based on underlying property equity and local sub-market comparables. Our internal underwriting team evaluated recent Severn sales within 24 hours, bypassing traditional third-party appraisal delays.

We issued a firm commitment letter and structured a $210,000 total loan facility, financing 90% of the purchase price ($144,000) and 100% of the renovation construction budget ($66,000). Construction capital was held in escrow and released across three structured draw disbursements as work was inspected. The loan funded and closed in five business days.

The Financial Win & Outcome

The investor executed a 75-day targeted renovation. The core value-add strategy focused on constructing a dedicated primary suite and opening the main living area. The developer allocated $18,000 of the $66,000 budget to reframe existing garage space into a primary bedroom with an en-suite full bathroom, and $15,000 to remove non-load-bearing walls for an open-concept kitchen and living room layout.

The remaining funds covered a new architectural shingle roof, updated HVAC equipment, interior paint, and laminate flooring. Creating a primary suite met high buyer demand in the sub-market, yielding a full-price offer within six days of listing.

• Purchase Price: $160,000
• Rehab Budget: $66,000 (Primary suite creation, open-concept conversion, and roof replacement)
• Financing & Holding Costs: $12,500
• Selling Costs (6%): $19,500
• Total Cost Basis & Expenses: $258,000
• Final Sale Price: $325,000
• Net Profit: $67,000

Key Takeaways for Local Investors

• Primary suite additions drive military relocation demand. Expanding floor plans to include private en-suite bathrooms increases appraisal values and speeds up resale velocity near Fort Meade.
• Asset division sales require guaranteed execution. Partnering with a lender who guarantees closing in five business days allows investors to secure distressed off-market sales without competition.
• 100% construction debt preserves working capital. Structuring loans to fund total renovation costs keeps investor reserves available across multiple active job sites.

Planning a single-family fix and flip or renovation project in Severn or Anne Arundel County? Submit your property address at hardmoneyhenry.com/apply for a 24-hour commitment letter.