Recently Funded Fix & Flip Loan In Middletown, NY

Loan Scenario:

This project highlights a fix and flip loan for a single-family property located in Middletown, New York. The home was purchased for $310,000, paired with a renovation budget of $20,000. American Heritage Lending provided $330,000 in financing, resulting in a Loan-to-Cost (LTC) of 100% and a conservative Loan-to-After Repair Value (LTARV) of 55%. Once the renovation is complete, the property is projected to reach an After Repair Value (ARV) of $600,000. The financing was structured as a 12-month interest-only term, giving the investor predictable payments throughout the project timeline.

The borrower, an experienced investor, planned a targeted renovation designed to elevate the property’s appeal without overextending the scope or budget. Initial work includes selective demolition such as removing the existing kitchen cabinets and opening up the bathrooms for full updates. Exterior improvements focus on repairing and replacing sections of the rear deck, addressing boards, railings, and stairs to ensure safety and curb appeal.

Inside the home, the investor is installing a brand-new kitchen with updated cabinetry, modern countertops, and new appliances. The bathrooms are being refreshed with paint, new flooring, and upgraded vanities to deliver a clean, modern finish. These improvements strike a balance between functionality and aesthetics, making the property competitive in the Middletown market once it’s listed for resale.

Middletown continues to show steady housing demand, with buyers seeking move-in-ready homes that offer updated kitchens, bathrooms, and functional outdoor spaces. Given the spread between the project’s total cost and the projected ARV, this flip is positioned for a strong exit.

This transaction is another example of how American Heritage Lending supports experienced investors, offering high-leverage financing that allows them to acquire and renovate properties efficiently while keeping liquidity available for future opportunities.