Property Report: 5409 Pembroke RENTAL

Property Report :

5409 Pembroke

5409 Pembroke, Baltimore, MD 21206

Created on: Apr 14, 2025

Author: Kevin Suber

5409 Pembroke, Baltimore, MD 21206

Multifamily:

Investment strategy: Rental Property

Purchase Price$ 99,900
Rent$ 1,400/mo
Monthly Cash Flow$ 228
Cash on Cash Return12.45 %

Financial Analysis

Cash on Cash Return 12.45 %
Internal Rate of Return (IRR) 23.19 %
Capitalization Rate 9.07 %
Gross Rent Multiplier (GRM) 5.95
Debt-coverage Ratio (DCR) 1.43
Operating Expense Ratio (OER) 41.98 %

Financial Breakdown

Purchase Price $ 99,900
Purchase Costs $ 2,000
Repair/Construction Costs $ 0
Total Capital Needed
$ 101,900
Financing $ 79,920
Total Cash Needed
$ 21,980
Cash at Closing
$ 19,980
Cash During Rehab
$ 2,000

Operating Analysis

Rent $ 1,400/mo
Gross Operating Income (GOI) $ 15,624
Total Expenses $ 6,559
Net Operating Income (NOI) $ 9,065
Annual Debt Service $ 6,329
Cash Flow Before Taxes (CFBT) $ 2,736
Income Tax Liability $ 443
Cash Flow After Taxes (CFAT) $ 2,292

5411 also available possible owner financing

Purchase Price $ 99,900
Address 5409 Pembroke , Baltimore, 21206, MD
Type Multifamily
Number of Units 2
5409 Pembroke Baltimore, MD 21206
  • Multifamily

    Bldg type

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Property address Distance Beds Baths SqFt Bldg type Date sold Sale price $/SqFt Notes Edit
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Estimated ARV:
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Comps selected: 0

Annual Property Operating Data

Incomes % of GOI
Gross Scheduled Income
$ 16,800    
Total Gross Income $ 16,800  
Vacancy loss
$ 1,176  
Gross Operating Income
$ 15,624 100.00 %
Expenses
Repairs $ 1,680 10.75 %
Manager $ 1,680 10.75 %
Prop_taxes $ 2,849 18.23 %
Prop_insurance $ 350 2.24 %
Total Expenses $ 6,559 41.98 %
Net Operating Income
$ 9,065 58.02 %

Cash Flow (Year 1)

Net Operating Income $ 9,065 58.02 %
Annual Debt Service $ 6,329 40.51 %
Cash Flow Before Taxes (CFBT)
$ 2,736 17.51 %
Income Tax Liability $ 443 2.84 %
Cash Flow After Taxes (CFAT)
$ 2,292 14.67 %

Operating Ratios

Operating Expense Ratio
41.98 %
Break-Even Ratio
82.49 %

Financial Measures

Net Present Value
$ 13,909
Internal Rate of Return
23.19 %
Profitability Index
1.63
Annual Depreciation $ 2,906

Holding period of 5 years and discount rate of 10.00% were used for calculation of NPV and IRR. The rest of the financial measures are for the 1st year only and therefore don't provide such an exact information.

Investment Return Ratios

Cash on Cash Return
12.45 %
Return on Investment
26.08 %
Capitalization Rate
9.07 %
Gross Rental Yield
16.82 %
Gross Rent Multiplier
5.95
Financing
Down Payment $ 19,980
Loan $ 79,920
Loan to Value Ratio
80.00 %
Loan to Cost Ratio
80.00 %
Debt Coverage Ratio 1.43
Loan

Financing of: Purchase price ($ 99,900)

Type Amortized
Loan Amount $ 79,920
Down payment (20%) $ 19,980
Amortization 20 years
Interest Rate 5.00 %
Monthly Payment $ 527.44

This chart shows the process of accumulation of investor's equity. There is some equity created right at the beginning with the rehab/construction and later investor's equity is rising by paying off the principal of the loan and also by appreciation over the years. All the green parts is the cummulative equity belonging to the investor and the red part belongs to the lender.

Year
Operational Analysis
Gross Scheduled Income
Vacancy Loss
Gross Operating Income
Expenses
Net Operating Income
Loan Payment
Payment Interest Part
Payment Principal Part
Cash Flow
Repairs/Construction
Cash Flow Before Taxes
Depreciation 0
Taxes
Cash Flow After Taxes

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 5 years. Below is the resale price calculated using different methods.

Appreciation (3.00%) $ 115,811
Cap Rate (9.07%) & NOI $ 115,604
Gross Rent Multiplier $ 112,506

Sale Proceeds

Projected Selling Price $ 115,811
Costs of Sale (7.00%) $ 8,107
Net Sale Proceeds Before Tax $ 41,007

In the resale analysis we do not include any calculation for taxes that might be owed on sale of the property. The tax laws for the resale are rather complex and subjected to frequent changes.

Net Assets and Yield

Net Assets
Sale Proceeds Before Tax $ 41,007
Investor Cash Outlay $ 21,980
Net Assets $ 19,027
Average Yield
Annual Net Assets $ 3,805
Average Cash Flow (After Taxes) $ 0
Average Annual Gain (After Taxes) $ 0
Average Annual Yield (After Taxes) 0.00 %

This charts shows Net Present Value (NPV) when property is sold in various years, i.e. when sold in 5th year, the NPV is calculated from 5 years of Cash Flow (including the selling price) and this NPV is displayed in year 5. Optimal holding period can be estimated, using this method - when NPV is the highest. Please note that appreciation growth can change these numbers greatly. It sometimes makes sense to sell the property even before the end of the mortgage term.

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