Situation:

Asset Based Lending recently financed a cash out and rehabilitation loan for an attached single family home in Philadelphia, PA. The borrower paid cash for the property in 2016, held the property for 2 years, and began renovations in October 2018. The investor has completed $25,000 worth of renovations with $90,000 still left to complete. The demo of the interior included removing everything in the house down to the studs and part of the floors between the first and second stories. The house is currently valued at roughly $125,000 (as is) and borrower will do a complete renovation which includes adding a 1/2 bath and finishing the basement.