Recently Funded Fix and Flip Loan in Dowagiac, Michigan

Loan Scenario:

This fix-and-flip project features a single-family home located in Dowagiac, Michigan; a small but steadily growing market known for its affordable inventory and investor friendly margins. The property was acquired for just $45,000, with a substantial renovation budget of $104,000. The total loan amount funded was $138,570, resulting in a Loan-to-Cost (LTC) ratio of 93% and a Loan-to-After Repair Value (LTARV) of 69%.

With a projected After Repair Value (ARV) of $200,000, this project was structured to both deliver both solid returns and a meaningful transformation to the local housing inventory. The scope of work was extensive. Exterior improvements included a new roof, fresh landscaping, updated exterior doors, full garage repairs, and the replacement of 22 windows- enhancing both efficiency and curb appeal.

On the Interior, all major systems were addressed: the HVAC, plumbing, and electrical systems were fully updated. Cosmetic improvements include new drywall throughout, fresh paint, modern trim and interior doors, new laminate and carpet flooring, along with updated lighting and hardware, resulting in a clean, contemporary finish that appeals to today’s buyers.

Dowagiac’s real estate market is showing strong signs of appreciation, with median home prices up as much as 48% year over year. the surrounding Cass County area remains stable, offering a balanced environment where strategic fix-and-flip projects like this one can continue to create value for both investors and future homeowners.

This project is a prime example of how experienced investors can use strategic financing to turn a distressed property into a move-in ready home. With full budget coverage, a solid ARV cushion, and professional level renovation plan, this deal highlights the kind of transformation American Heritage Lending is proud to support.