Property Report: Pinewood Duplexes RENTAL

Property Report :

Pinewood Duplexes

5520 Pinewood, Lake Charles, LA 70607

Created on: Apr 14, 2025

Author: David Self

5520 Pinewood, Lake Charles, LA 70607

Multifamily: 5 rooms: 2 bedrooms , 1 bathroom + 1 kitchen

Year built: 2005, Size: 1382 SF

Investment strategy: Rental Property

Purchase Price$ 600,000
Rent$ 4,800/mo
Monthly Cash Flow$ -419
Cash on Cash Return-2.73 %

Financial Analysis

Cash on Cash Return -2.73 %
Internal Rate of Return (IRR) 25.60 %
Capitalization Rate 5.81 %
Gross Rent Multiplier (GRM) 10.42
Debt-coverage Ratio (DCR) 0.87
Operating Expense Ratio (OER) 39.46 %
After Repair Value $ 600,000

Financial Breakdown

Purchase Price $ 600,000
Purchase Costs $ 4,000
Repair/Construction Costs $ 0
Total Capital Needed
$ 604,000
Financing $ 420,000
Total Cash Needed
$ 184,000
Cash at Closing
$ 180,000
Cash During Rehab
$ 4,000

Operating Analysis

Rent $ 4,800/mo
Gross Operating Income (GOI) $ 57,531
Total Expenses $ 22,700
Net Operating Income (NOI) $ 34,831
Annual Debt Service $ 39,856
Cash Flow Before Taxes (CFBT) $ -5,025
Income Tax Liability $ 0
Cash Flow After Taxes (CFAT) $ -5,025
Purchase Price $ 600,000
Address 5520 Pinewood , Lake Charles, 70607, LA
Year Built 2005
Type Multifamily
Number of Units 6
Size 1382 SF
Bedrooms 2
Bathrooms 1
Rooms Total 5
Kitchens 1
5520 Pinewood Lake Charles, LA 70607
  • $ 600,000

    Property ARV
  • Multifamily

    Bldg type
  • 1,382

    SqFt
  • $ 434

    per SqFt
  • 2

    Beds
  • 1

    Baths

It wasn't possible to load comps automatically for this address. You can add them manually below. Click here to see automatically selected comps on Redfin®

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

Comps selected: 0

Annual Property Operating Data

Incomes % of GOI
Gross Scheduled Income
$ 57,600    
Total Gross Income $ 57,600  
Vacancy loss
$ 69  
Gross Operating Income
$ 57,531 100.00 %
Expenses
Repairs $ 3,000 5.21 %
Manager $ 3,000 5.21 %
Prop_insurance $ 7,200 12.51 %
Maintenance Allow. $ 5,000 8.69 %
Property Tax $ 4,500 7.82 %
Total Expenses $ 22,700 39.46 %
Net Operating Income
$ 34,831 60.54 %

Cash Flow (Year 1)

Net Operating Income $ 34,831 60.54 %
Annual Debt Service $ 39,856 69.28 %
Cash Flow Before Taxes (CFBT)
$ -5,025 -8.73 %
Income Tax Liability $ 0 0.00 %
Cash Flow After Taxes (CFAT)
$ -5,025 -8.73 %

Operating Ratios

Operating Expense Ratio
39.46 %
Break-Even Ratio
108.73 %

Financial Measures

Net Present Value
$ 348,633
Internal Rate of Return
25.60 %
Profitability Index
2.89
Annual Depreciation $ 17,455

Holding period of 10 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
-2.73 %
Return on Investment
-2.57 %
Capitalization Rate
5.81 %
Gross Rental Yield
9.60 %
Gross Rent Multiplier
10.42
Financing % of ARV
Down Payment $ 180,000 30.00 %
Loan $ 420,000 70.00 %
Loan to Value Ratio
70.00 %
Loan to Cost Ratio
70.00 %
Debt Coverage Ratio 0.87
Loan

Financing of: Purchase price ($ 600,000)

Type Amortized
Loan Amount $ 420,000
Down payment (30%) $ 180,000
Amortization 15 years
Interest Rate 5.00 %
Monthly Payment $ 3,321.33

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 10 years. Below is the resale price calculated using different methods.

Appreciation (0.05%) $ 603,007
Cap Rate (5.81%) & NOI $ 4,503,125
Gross Rent Multiplier $ 3,096,859

Sale Proceeds

Projected Selling Price $ 603,007
Costs of Sale (7.00%) $ 42,210
Net Sale Proceeds Before Tax $ 384,797

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 $ 384,797
Investor Cash Outlay $ 184,000
Net Assets $ 200,797
Average Yield
Annual Net Assets $ 20,080
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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