The top level was to be living space, (i.e. residence). The main floor is the shop, the alchemical lab is in the cellar and the magical lab is in the sub-cellar. Average neighborhood is fine.
The new cost is 400gp for the top floor (residence), 400 gp for the shop (main floor), 700 gp for the basic alchemy lab (cellar), 400 gp to obtain a sub-cellar and 500 gp for the magical lab in the sub-cellar. He'll get 500 gp of stock for the shop. 700 gp of all that comes from starting money, so the total loan amount will be 2200 gp. Valrik will max his legitimate loan at 1000 gp , again using the place itself as collateral. The remaining 1200 gp will be illegal, meaning in two weeks he needs to shell out 1320 gp.