John Day

Previously vacant, the 1400 block of N. Bethel in Baltimore was redeveloped in 2019 by Blank Slate Development. Several of the properties were acquired via receivership through the nonprofit One House At A Time, a Cap Ex client.

Introduction

If you’re taking on a vacant rowhouse rehab—especially in a neighborhood that’s still finding its footing—the Notice to Proceed with construction (NTP) shouldn’t be your starting point. It should be the moment when you finally say, “Okay, we’re truly ready.”

I’ve learned from experience (and from watching others struggle) that the success of a project is built long before the crew shows up. Here’s what I make sure to do before giving anyone the green light.

Start by Talking to the Right People

Two people can make your life a lot easier early on: a city planner and a local broker.

A good city planner—someone who actually knows what’s happening on the block level—can tell you where the city is investing, who else is building, and whether the neighborhood has momentum. They might even warn you about a block that’s been stuck for years, or point you to another one that’s turning a corner.

Then there’s the broker. Not the passive “I’ll send you the MLS listing” type, but the broker who knows the neighborhood from the inside out. They know which sellers are serious, what the real comps are, which houses are about to hit the market, and which ones are about to become a headache. They’re also the ones who help you find multiple property options, which is crucial.

A good city planner — someone who actually knows what’s happening on the block level — can tell you where the city is investing, who else is building, and whether the neighborhood you’re eyeing has real momentum.

Don’t Bet Everything on One Property

This part surprises new developers, but it’s true: you need more than one option.

In distressed housing, a lot of homes simply don’t survive the due-diligence process. Maybe the seller isn’t motivated. Maybe the roof has collapsed. Maybe the joists look like swiss cheese. Or maybe the numbers just don’t work once you really crunch them.

Starting with a short list of properties instead of a single “hopeful favorite” keeps you from getting stuck when one falls through.

Get Serious About Due Diligence

Once you’ve narrowed down your list, get a contractor — not a general home inspector — to walk the property with you. Someone who actually understands city row houses will catch the real problems: rotted framing, water damage, structural sagging, bad roof lines, mold, plumbing disasters, and other surprises that can blow up your budget.

Lock Down Your Plans, Budget, Financing, and Title Work

Before issuing the NTP, everything needs to be settled — not “sort of figured out,” but actually done. That means:

  • finished architectural drawings
  • a construction estimate that’s grounded in reality
  • a full project budget with contingency
  • secured financing
  • title work complete
  • any ground leases resolved

If you skip these steps, you’re basically inviting change orders, delays, and chaos.

Choose the Right Contractor 

I can’t stress this enough: don’t pick a contractor just because they’re the cheapest.

You want someone who shows up, communicates well, has enough cash flow to keep the project moving, and pays their subcontractors on time. A reliable contractor keeps you on schedule and prevents those nasty “surprises” that usually pop up when a team is disorganized or stretched too thin.

A reliable contractor keeps you on schedule and prevents those nasty “surprises” that usually pop up when a team is disorganized or stretched too thin.

Plan for Logistics and Security Before Work Starts

Plan for Logistics and Security Before Work Starts

Vacant houses attract all kinds of problems: break-ins, theft, illegal dumping, you name it. So before construction begins, make a plan for:

  • secure material storage (a locked container works wonders)
  • where the dumpster will go
  • how contractors access the site
  • how you’ll communicate with the neighbors

Doing this in advance keeps the project from getting derailed in the first few weeks.

The NTP Should Be the Last Step, Not the First

By the time you issue your Notice to Proceed, you should already know the block is solid, the structure is sound, your numbers make sense, your financing is secure, your contractor is dependable, and your site plan is tight. If you’ve done all of that, issuing the NTP feels less like a risk and more like the natural next step.

If you skip it? You’re rolling the dice—with your timeline, your budget, and your sanity.

Key Takeaways

  • Don’t fall in love with the first house you see. Start with a few options. In this kind of work, one property almost always falls apart once you dig into the details.
  • Loop in a city planner early. They know which blocks are moving in the right direction, which ones aren’t, and what the city has planned nearby. Their insight can save you from picking the wrong location.
  • Lean on a good broker. Local brokers often know more about what’s happening on the street than what’s listed online. They’ll help you find real opportunities and dodge the messy ones.
  • Do real due diligence—not a quick walkthrough. Bring a contractor who actually understands rowhouses. You want to uncover the “ugly stuff” now, not after you’ve already committed to the job.
  • Get your plans and numbers locked in first. Before you issue a Notice to Proceed, make sure your drawings are complete, your budget makes sense, your financing is solid, and any title issues (especially ground leases) are resolved.
  • Pick a contractor you trust to finish the job. Lowest price doesn’t mean least headaches. Choose someone reliable, organized, and financially stable enough to keep the project moving.
  • Think through logistics and security ahead of time. Plan for where materials will go, how the crew will access the house, how you’ll keep things secure, and how you’ll keep neighbors informed.

Ready to take the next step? We’d love to chat with you!

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