giiford mobile home park matthew j. galofaro, …...#1 real estate company in the gulf south for a...

Property Report

Giiford Mobile Home Park 101 Tousaint Rd

Lake Charles, Louisiana 70607

Presented by:

Matthew J. Galofaro, CCIM Latter & Blum Classic Homes & Properties, Inc.

14454 University Ave. Hammond, Louisiana 70401

Office: (985) 542-7601Mobile: (985) 969-8473

Fax: (985) 542-7760matt@latterblumcommercial.comwww.LatterBlumCommercial.com

Disclaimer: All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

#1 Real Estate Company in the Gulf South for a REASON.... 1

OverviewGiiford Mobile Home Park 101 Tousaint RdLake Charles, Louisiana 70607

Latter & Blum Classic Homes & Properties, Inc.(985) 542-7601

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Purchase InfoTotal Number of Units 128Purchase Price $2,950,000Initial Cash Invested $796,500

Income Analysis Monthly AnnualNet Operating Income $21,844 $262,134Cash Flow $6,625 $79,500

Financial MetricsCap Rate (Purchase Price) 8.9%Cash on Cash Return (Year 1) 10.0%Internal Rate of Return (Year 10) 20.3%Sale Price (Year 10) $3,964,553


Purchase AnalysisGiiford Mobile Home Park 101 Tousaint RdLake Charles, Louisiana 70607


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Purchase InfoPurchase Price $2,950,000- First Mortgage -$2,212,500- Second Mortgage -$0= Downpayment $737,500+ Buying Costs $59,000+ Initial Improvements $0= Initial Cash Invested $796,500Total Number of Units 128Cost per Unit $23,047Average Monthly Rent per Unit $265

Mortgages First SecondLoan-To-Cost Ratio 75% 0%Loan-To-Value Ratio 75% 0%Loan Amount $2,212,500 $0Loan Type AmortizingTerm 20 YearsInterest Rate 5.5%Payment $15,219.51 $0.00

Financial Metrics (Year 1)Annual Gross Rent Multiplier 7.2Operating Expense Ratio 30.0%Debt Coverage Ratio 1.44Cap Rate (Purchase Price) 8.9%Cash on Cash Return 10.0%

AssumptionsAppreciation Rate 3.0%Vacancy Rate 8.0%Income Inflation Rate 3.0%Expense Inflation Rate 3.0%LTV for Refinance 70.0%Selling Costs $206,500

Income Monthly AnnualGross Rent $33,920 $407,040Vacancy Loss -$2,714 -$32,563Operating Income $31,206 $374,477

Expenses (% of Income) Monthly AnnualOperating Expenses (30%) -$9,362 -$112,343Operating Expenses (30%) -$9,362 -$112,343

Net Performance Monthly AnnualNet Operating Income $21,844 $262,134- Mortgage Payments -$15,220 -$182,634- Year 1 Improvements -$0 -$0= Cash Flow $6,625 $79,500


Buy and Hold ProjectionGiiford Mobile Home Park 101 Tousaint RdLake Charles, Louisiana 70607


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Income Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Gross Rent $407,040 $419,251 $431,829 $458,127 $531,095 $713,747 $959,216Vacancy Loss -$32,563 -$33,540 -$34,546 -$36,650 -$42,488 -$57,100 -$76,737Operating Income $374,477 $385,711 $397,282 $421,477 $488,607 $656,647 $882,479

Expenses Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Operating Expenses -$112,343 -$115,713 -$119,185 -$126,443 -$146,582 -$196,994 -$264,744Operating Expenses -$112,343 -$115,713 -$119,185 -$126,443 -$146,582 -$196,994 -$264,744

Income Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Net Operating Income $262,134 $269,998 $278,098 $295,034 $342,025 $459,653 $617,735- Mortgage Payments -$182,634 -$182,634 -$182,634 -$182,634 -$182,634 -$182,633 -$0- Improvements -$0 -$0 -$0 -$0 -$0 -$0 -$0= Cash Flow $79,500 $87,364 $95,464 $112,400 $159,391 $277,021 $617,735Cap Rate (Purchase Price) 8.9% 9.2% 9.4% 10.0% 11.6% 15.6% 20.9%Cap Rate (Market Value) 8.6% 8.6% 8.6% 8.6% 8.6% 8.6% 8.6%Cash on Cash Return 10.0% 11.0% 12.0% 14.1% 20.0% 34.8% 77.6%Return on Equity 8.9% 8.4% 7.9% 7.2% 6.2% 5.2% 8.6%

Loan Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Market Value $3,038,500 $3,129,655 $3,223,545 $3,419,859 $3,964,553 $5,328,028 $7,160,424- Loan Balance -$2,149,993 -$2,083,961 -$2,014,203 -$1,862,662 -$1,402,379 -$0 -$0= Equity $888,507 $1,045,694 $1,209,341 $1,557,196 $2,562,174 $5,328,028 $7,160,424Loan-to-Value Ratio 70.8% 66.6% 62.5% 54.5% 35.4% 0.0% 0.0%Potential Cash-Out Refi -$23,043 $106,798 $242,278 $531,239 $1,372,808 $3,729,620 $5,012,297

Sale Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Equity $888,507 $1,045,694 $1,209,341 $1,557,196 $2,562,174 $5,328,028 $7,160,424- Selling Costs -$212,695 -$219,076 -$225,648 -$239,390 -$277,519 -$372,962 -$501,230= Proceeds After Sale $675,812 $826,618 $983,693 $1,317,806 $2,284,655 $4,955,066 $6,659,195+ Cumulative Cash Flow $79,500 $166,863 $262,327 $478,533 $1,178,729 $3,390,951 $8,818,442- Initial Cash Invested -$796,500 -$796,500 -$796,500 -$796,500 -$796,500 -$796,500 -$796,500= Net Profit -$41,189 $196,982 $449,520 $999,839 $2,666,884 $7,549,518 $14,681,136Internal Rate of Return -5.2% 12.2% 17.5% 20.4% 20.3% 18.6% 17.9%Return on Investment -5% 25% 56% 126% 335% 948% 1,843%


GraphsGiiford Mobile Home Park 101 Tousaint RdLake Charles, Louisiana 70607


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PhotosGiiford Mobile Home Park 101 Tousaint RdLake Charles, Louisiana 70607


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