Structural Wall Removal & Complete Mechanical Overhaul Fix & Flip

The Investor Scenario & Opportunity

An active real estate investor secured an off-market contract directly from a private owner for a two-story brick rowhouse in the Anacostia neighborhood of Southeast Washington, DC. Situated near the Anacostia Metro station and the Historic Anacostia commercial corridor, the location offered rapid transit access to Capitol Hill and Downtown DC.

The seller was an absentee owner holding the property in unbankable condition with extensive deferred maintenance, active roof leaks, and non-functional utility systems. Facing municipal tax enforcement penalties, the seller sought an immediate direct cash transaction without making repairs or paying real estate commissions. The investor negotiated a purchase price of $190,000. Fully renovated rowhouses on surrounding blocks featuring modernized open layouts were selling consistently near $415,000.

The Strategy & Capital Requirement

The primary challenge centered on settlement speed and capital preservation across concurrent job sites. The seller required a guaranteed five business day closing to settle municipal tax obligations before interest penalties compounded.

At the same time, the investor had working capital committed to an active two-unit renovation project in nearby Deanwood. To maintain proper liquidity for subcontractor payroll and upcoming material deliveries on that project, the borrower required a direct loan facility covering 90% of the purchase price and 100% of the construction draw budget.

The Henry Solution (Loan Mechanics & Underwriting)

Hard Money Henry underwrote the loan based on direct real estate equity and local sub-market sales comparables. Our internal underwriting team evaluated recent Anacostia rowhouse sales within 24 hours, completely eliminating third-party appraisal delays.

We issued a firm commitment letter and structured a $262,500 total loan facility, financing 90% of the purchase price ($171,000) and 100% of the construction budget ($91,500). Construction capital was held in escrow and released across three structured draw inspections as work milestones were verified. The transaction funded and closed in five business days.

The Financial Win & Outcome

The investor completed a 75-day targeted renovation program. The core value-add strategy focused on structural wall removal and complete mechanical overhauls. The investor allocated $32,000 of the $91,500 budget to install a new roof, fit a high-efficiency HVAC system, run modern electrical wiring, and replace plumbing stacks. Another $24,000 was dedicated to installing structural steel support beams to remove interior partition walls, creating an open-concept kitchen and living area.

The remaining funds covered custom kitchen cabinetry, quartz countertops, modern bathroom finishes, refinished flooring, and fresh interior paint. Removing structural walls and providing upgraded utility systems generated multiple competing offers within six days of listing.

• Purchase Price: $190,000
• Rehab Budget: $91,500 (Structural wall removal, roof replacement, full mechanical overhaul)
• Financing & Holding Costs: $14,000
• Selling Costs (6%): $24,900
• Total Cost Basis & Expenses: $320,400
• Final Sale Price: $415,000
• Net Profit: $94,600

Key Takeaways for Local Investors

• Open layouts and modern mechanicals maximize market velocity. Eliminating compartmentalized walls and replacing obsolete utility infrastructure removes major buyer inspection hurdles in historic DC rowhouses.
• Direct seller acquisitions require guaranteed speed. Partnering with a direct balance-sheet lender who guarantees settlement in five business days allows investors to win unbankable off-market deals.
• 100% renovation debt protects active liquidity. Structuring loan packages to cover total construction draws keeps capital reserves available for concurrent job site operations.

Planning a fix and flip or structural rowhouse renovation in Washington, DC? Submit your property address at hardmoneyhenry.com/apply for a 24-hour commitment letter.