Asset Based Lending recently funded a property purchase and rehab loan to a repeat borrower and full-time real estate investor in Philadelphia Pennsylvania. This borrower uses the buy and hold strategy and intends to refinance this property to incorporate it into their rental portfolio. The property was found through a wholesaler contact and has previously been updated. For the renovations the borrower only intends to do some touchups to the drywall where there is slight damage, replace light fixtures throughout the home, install a washer and dryer, and frame out a bedroom in the basement to maximize the rental potential. Since this property will operate as a rental for this investor it’s important that they make as much of the property livable space so they can increase the expected monthly rent. ABL has worked with this borrower on projects like this one in the past and already ran the metrics on the DSCR expectations. With an expected DSCR of 1.26 this property will be a valuable addition to the borrower’s real estate portfolio. Philadelphia has a strong renter community, and this investor will have the property occupied once renovations are completed in 4 months.
