Single-Family to 3-Unit Conversion

A single-family house with the bones to become a three-unit rental, and a plan a conventional underwriter would have passed on.

Some of the best projects are the ones that do not fit neatly inside a conventional lending box. This Baltimore property came to us as a single-family home with the potential to become a three-unit rental, exactly the kind of value-add play a bank often declines because it does not match a tidy comparable.

We looked at it the way an investor would. A $137,000 purchase and a $230,000 renovation budget only make sense if the finished product supports them, and at a $685,000 after-repair value the numbers supported the plan. We underwrote the strength of the renovation scope, the borrower's track record, and the property's long-term rental potential, not simply its current condition.

We have done these deals ourselves, so we understand that the right financing is the kind that lets a sound plan become a finished, income-producing building.