Instructions

1) The user should fill in the requested information in the blocks highlighted in yellow.

2) Property Information requires user input.

3) Expected Expenses requires user input.

4) Debt Assumptions requires user input.

5) 60 month occupancy table requires user input.

6) Economic Assumptions require user input.

7) Capitalization table requires user input.

8) 5 Year improvements budget requires user input.

9) Opening balance sheet requires user input.

10) Return tables are self calculating

11)Key metrics is self calculating

12) Sources and Uses requires user input.

13) Average rent requires user input

14) Fin & Prop is for verification purposes only.

15) Pro Forma is self calculating.

Property Factors

Address:

Street

City

Phone Number

Manager/Principal

Property Information:

Year Constructed

Type of Roofs

Acreage

Buildings

Units

Unit Mix Information

Bedrooms Efficiency Studio 1 bedroom 2 bedroom 3 bedroom 4 bedroom 5 bedroom Total

Qty 0 0 10 20 10 0 0 40

Bathrooms Qty Qty Qty Qty Qty Qty Qty

1 bathroom 10 20

2 bathroom 10

3 bathroom

1/2 bathroom 20

Amenities (Yes / No)

Swimming Pool No

Fitness Center Yes

Playgrounds Yes

Picnic Facilities Yes

Laundry Yes

Business Center No

Tanning Beds No

Clubhouse No

Other No

10

10

40

1 Main Street

Anytown

111-222-3333

John Doe

1985

Pitched

Expenses

ADMINISTRATIVE EXPENSES Monthly Estimate

Advertising & Promotion 100

Marketing 25

Bank & Finance Charges 15

Finance Charges 10

Credit Verifications 50

Office Supplies 10

Postage 5

Printing & Stationary 5

Dues & Subscriptions 15

Office Expense -

Management Fee 1,200

Office Salaries 2,000

Leasing Salaries -

Leasing Commission 120

Legal Fees 50

Audit Fees 50

Telephone 100

Miscellaneous Expense 25

Vehicles -

Washer Dryer Rental -

Resident Releations -

Education -

Meals / Entertainment -

Travel and Lodging -

Renovations -

Points Paid on Loans -

Surveying -

Initial Set Up -

Consulting -

TOTAL ADMINISTRATIVE EXPENSES 3,780

UTILITIES

Electricity 450

Gas -

Water & Sewer 200

TOTAL UTILITIES 650

OPERATING & MAINTENANCE EXPENSES

Maintenance Salary 1,600

Cleaning Supplies 25

Contract Cleaning/Janitorial 200

Contract Labor -

Locks & Keys -

Exterminating 50

Trash Disposal 200

Security Services -

Landscaping & Grounds 500

Hardware Repair Materials 100

Appliance Parts 100

Paint & Wallpaper Supplies 150

Contract Maintenance -

Plumbing Repairs - Contract -

Electrical & Mechanical 25

Contract Painting -

Roof Repairs -

Fire Protection -

HVAC (Heat, Ventilation, A/C) 125

Swimming Pool -

Misc. Maintenance -

TOTAL OPERATING & MAINTENANCE EXPENSES 3,075

TAXES & INSURANCE (Recommend discussing and establishing estimates with your accountant)

Property Tax 1,000

Insurance 850

Group Insurance - Medical Plans -

Other Taxes & Licenses -

Federal Payroll Tax 450

State Payroll Tax 125

Social Security and Medicaid 100

State Sales Tax on Services (NC) -

County Occupany Tax -

TOTAL TAXES & INSURANCE 2,525

TOTAL OPERATING EXPENSES 10,030

Capital Reserve Rate / Unit (Stated as an Annual Number) 2,200

Note: A normal capital reserve rate is between 1,800 and 4,200 per unit per year.

Income

RENT FACTORS

Less: Bad Debt 3.00% Enter the Assumed %

Less: Concessions 200 Enter the Assumed Amount

OTHER INCOME ENTER ASSUMED AMOUNTS

Laundry & Vending Income 100

Washer/Dryer Rental -

Cable TV -

Late Fees 40

NSF Charge 25

Deposit Forfeit -

Cleaning & Damages 200

Termination Fee -

Application Fees 160

Utilities -

Pet Fees 35

Interest Income -

Miscellaneous Income 100

Storage Income -

Furniture -

Lock Out or Replacement -

TOTAL OTHER INCOME 660

Debt Factors

Rate 7.0000%

Term (in months) 60

Amortization 360

Loan Amount 1,500,000

Interest Only (Y/N) N

Loan Payment 9,980

Executed Date Monday, January 01, 2001

Due Date Monday, January 01, 2001

Application Fees 5,000

Legal Expense 12,000

Bank Origination Fee (Points) 20,000

Broker's Origination Fee (Points) 20,000

Bank

Bank Address 2 Main Street, Anytown,AS 11111

Loan Officer John Doe

Loan Officer Email John.Doe@Anybank.com

Loan Officer Phone Number xxx-yyy-zzzz

Loan Officer Cell Phone aaa-bbb-cccc

Loan Officer Fax Number ddd-eee-ffff

Brokerage

Broker 3 Main Street, Anytown, AS 11111

Broker Email Jane Doe

Broker Phone Number Jane.Doe@anybroker.com

Broker Cell Phone ggg-hhh-iiii

Broker Fax Number jjj-kkk-llll

Occupancy Assumptions

1 2 3 4 5 6 7 8 9 10 11 12 Total

Occupancy % 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%

Year 1

1 2 3 4 5 6 7 8 9 10 11 12 Total

Occupancy % 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%

Year 2

1 2 3 4 5 6 7 8 9 10 11 12 Total

Occupancy % 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%

Year 3

1 2 3 4 5 6 7 8 9 10 11 12 Total

Occupancy % 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%

Year 4

1 2 3 4 5 6 7 8 9 10 11 12 Total

Occupancy % 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%

Year 5

Economic Assumptions

Annual Rent Increase 4.00% Enter annual % increase or decrease expected. A decrease would be a negative percentage

Annual Expense Increase 2.50% Enter annual % increase or decrease expected. A decrease would be a negative percentage

Capitalization Table

# Name Business Name Address Phone Cell Phone Fax Email Investment Units %

1 John Anybody ACME 4 Main Street, Anytown, AS 11111 111-222-3334 111-222-3335 111-222-3336 john.anybody@acme.com 750,000 15 80%

2 0 0%

3 0 0%

4 0 0%

5 0 0%

6 0 0%

7 0 0%

8 0 0%

9 0 0%

10 0 0%

11 0 0%

12 0 0%

13 0 0%

14 0 0%

15 0 0%

16 0 0%

17 0 0%

18 0 0%

19 0 0%

20 0 0%

21 0 0%

22 0 0%

23 0 0%

24 0 0%

25 0 0%

26 0 0%

27 0 0%

28 0 0%

29 0 0%

30 0 0%

31 0 0%

32 0 0%

33 0 0%

34 0 0%

35 Principal 0 0%

Management 20%

Total 750,000 15

Unit Price 50000

Investor Information

Improvement Budget

Category 1 2 3 4 5 6 7 8 9 10 11 12 Total

Landscaping -

Paving -

Drainage -

Lights -

Appliances 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Doors -

Windows -

Drywall and Painting -

HVAC -

Flooring -

Cabinets -

Hardware -

Fixtures -

Swimming Pool -

Miscellaneous -

Club House -

Laundry -

Business Center -

Total 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Total Improvements 60,000

Year 1

Category 1 2 3 4 5 6 7 8 9 10 11 12 Total

Landscaping -

Paving -

Drainage -

Lights -

Appliances 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Doors -

Windows -

Drywall and Painting -

HVAC -

Flooring -

Cabinets -

Hardware -

Fixtures -

Swimming Pool -

Miscellaneous -

Club House -

Laundry -

Business Center -

Total 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Year 2

Category 1 2 3 4 5 6 7 8 9 10 11 12 Total

Landscaping -

Paving -

Drainage -

Lights -

Appliances 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Doors -

Windows -

Drywall and Painting -

HVAC -

Flooring -

Cabinets -

Hardware -

Fixtures -

Swimming Pool -

Miscellaneous -

Club House -

Laundry -

Business Center -

Total 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Year 3

Category 1 2 3 4 5 6 7 8 9 10 11 12 Total

Landscaping -

Paving -

Drainage -

Lights -

Appliances 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Doors -

Windows -

Drywall and Painting -

HVAC -

Flooring -

Cabinets -

Hardware -

Fixtures -

Swimming Pool -

Miscellaneous -

Club House -

Laundry -

Business Center -

Total 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Year 4

Category 1 2 3 4 5 6 7 8 9 10 11 12 Total

Landscaping -

Paving -

Drainage -

Lights -

Appliances 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Doors -

Windows -

Drywall and Painting -

HVAC -

Flooring -

Cabinets -

Hardware -

Fixtures -

Swimming Pool -

Miscellaneous -

Club House -

Laundry -

Business Center -

Total 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Year 5

Balance Sheet

Assets Amount

Opening Operating Reserve / Cash 133,000 Operating Cash

Opening Improvement Reserve / Cash 60,000 Purchase Price 2000000

Land 200,000 Debt 1500000

Buildings 1,857,000 Cash Needed 500000

Other Equipment -

Total Assets 2,250,000

Liabilities

Mortgage 1,500,000

Other Liabilities -

Total Liabilities 1,500,000

Owner Equity 750,000

Total Liabilities + Equity 2,250,000

Check Sum -

Note: Buildings should come from the appraiser (the appraiser should be instructed to provide a

value for buildings and a value for land).

Note: Land should come from the appraisal (the appraiser should be instructed to provide a value

for buildings and a value for the land).

Note: Assets must equal total liabilities + equity (if they do not seek an accountant's support for this

table.

Sources and Uses

Sources:

Debt 1,500,000

Equity 750,000

Other

Total Sources 2,250,000

Uses:

Purchase Price 2,000,000

Fees 57,000

Operating Reserve 133,000

Improvement Reserve 60,000 Check Sum (should be 0)

Total Uses 2,250,000 -

Note: Uses must equal sources

Note: Operating reserve should be equal to negative cash flow from the portfolio plus a

reasonable balance for the size the property.

Average Rent Table

Qty Initial Rent

Efficiency Units 0

Studio Units 0

1 Bedroom Units 10 550

2 Bedroom Units 20 625

3 Bedroom Units 10 715

4 Bedroom Units 0

5 Bedroom Units 0

Average Rent 629

Return Tables

Internal Rate of Return

IRR Year 1 Year 2 Year 3 Cash on Cash

18% (750,000) - 1,049,610 299,610

IRR Year 1 Year 2 Year 3 Year 4 Year 5 Cash on Cash

21% (750,000) - - - 1,589,824 839,824

Annual Cash Return on Investment as a Percentage

Year 1 Year 2 Year 3

1.27% 19.25% 20.30%

Year 1 Year 2 Year 3 Year 4 Year 5

1.27% 19.25% 20.30% 21.40% 22.55%

Note 2: The final year cash is the value plus the operating and improvement reserve at the "sale" less the debt.

Note 3: The cash at sale does not account for paid principal if any.

Note 1: IRR Calculation is Based on An Assumed Sale at 8% cap rate in the Final Year and Improves if any cash is returned to investors early.

Key Metrics and Valuation6% Cap Rate 7% Cap Rate 8% Cap Rate 9% Cap Rate

Year 1 Value 2,477,190 2,123,306 1,857,893 1,651,460

Year 2 Value 2,602,688 2,230,875 1,952,016 1,735,125

Year 3 Value 2,733,957 2,343,392 2,050,468 1,822,638

Year 4 Value 2,871,249 2,461,071 2,153,437 1,914,166

Year 5 Value 3,014,823 2,584,134 2,261,117 2,009,882

NOI LTV DSCR

Year 1 Value 151,328 80.74% 1.26

Year 2 Value 166,642 76.84% 1.39

Year 3 Value 174,775 73.15% 1.46

Year 4 Value 183,276 69.66% 1.53

Year 5 Value 192,161 66.34% 1.60

Pro Forma

1 2 3 4 5 6 7 8 9 10 11 12 Total

Rents

Occupancy 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%

Rent 22,635 22,635 22,635 22,635 22,635 22,635 22,635 22,635 22,635 22,635 22,635 22,635 271,620

Bad Debt 679 679 679 679 679 679 679 679 679 679 679 679 8,149

Concessions 200 200 200 200 200 200 200 200 200 200 200 200 2,400

Net Rent 21,756 21,756 21,756 21,756 21,756 21,756 21,756 21,756 21,756 21,756 21,756 21,756 261,071

Average Rent Per Unit 544 544 544 544 544 544 544 544 544 544 544 544

OTHER INCOME

Laundry & Vending Income 100 100 100 100 100 100 100 100 100 100 100 100 1,200

Washer/Dryer Rental - - - - - - - - - - - - -

Cable TV - - - - - - - - - - - - -

Late Fees 40 40 40 40 40 40 40 40 40 40 40 40 480

NSF Charge 25 25 25 25 25 25 25 25 25 25 25 25 300

Deposit Forfeit - - - - - - - - - - - - -

Cleaning & Damages 200 200 200 200 200 200 200 200 200 200 200 200 2,400

Termination Fee - - - - - - - - - - - - -

Application Fees 160 160 160 160 160 160 160 160 160 160 160 160 1,920

Utilities - - - - - - - - - - - - -

Pet Fees 35 35 35 35 35 35 35 35 35 35 35 35 420

Interest Income - - - - - - - - - - - - -

Miscellaneous Income 100 100 100 100 100 100 100 100 100 100 100 100 1,200

Storage Income - - - - - - - - - - - - -

Furniture - - - - - - - - - - - - -

Lock Out or Replacement - - - - - - - - - - - - -

TOTAL OTHER INCOME 660 660 660 660 660 660 660 660 660 660 660 660 7,920

Total Income 22,416 22,416 22,416 22,416 22,416 22,416 22,416 22,416 22,416 22,416 22,416 22,416 268,991

EXPENSES

ADMINISTRATIVE EXPENSES

Advertising & Promotion 100 100 100 100 100 100 100 100 100 100 100 100 1,100

Marketing 25 25 25 25 25 25 25 25 25 25 25 25 275

Bank & Finance Charges 15 15 15 15 15 15 15 15 15 15 15 15 165

Finance Charges 10 10 10 10 10 10 10 10 10 10 10 10 110

Credit Verifications 50 50 50 50 50 50 50 50 50 50 50 50 550

Office Supplies 10 10 10 10 10 10 10 10 10 10 10 10 110

Postage 5 5 5 5 5 5 5 5 5 5 5 5 55

Printing & Stationary 5 5 5 5 5 5 5 5 5 5 5 5 55

Dues & Subscriptions 15 15 15 15 15 15 15 15 15 15 15 15 165

Office Expense - - - - - - - - - - - - -

Management Fee 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 13,200

Office Salaries 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 22,000

Leasing Salaries - - - - - - - - - - - - -

Leasing Commission 120 120 120 120 120 120 120 120 120 120 120 120 1,320

Legal Fees 50 50 50 50 50 50 50 50 50 50 50 50 550

Audit Fees 50 50 50 50 50 50 50 50 50 50 50 50 550

Telephone 100 100 100 100 100 100 100 100 100 100 100 100 1,100

Miscellaneous Expense 25 25 25 25 25 25 25 25 25 25 25 25 275

Vehicles - - - - - - - - - - - - -

Washer Dryer Rental - - - - - - - - - - - - -

Resident Releations - - - - - - - - - - - - -

Education - - - - - - - - - - - - -

Meals / Entertainment - - - - - - - - - - - - -

Travel and Lodging - - - - - - - - - - - - -

Renovations - - - - - - - - - - - - -

Points Paid on Loans - - - - - - - - - - - - -

Surveying - - - - - - - - - - - - -

Initial Set Up - - - - - - - - - - - - -

Consulting - - - - - - - - - - - - -

TOTAL ADMINISTRATIVE EXPENSES 3,780 3,780 3,780 3,780 3,780 3,780 3,780 3,780 3,780 3,780 3,780 3,780 41,580

Year 1

1 2 3 4 5 6 7 8 9 10 11 12 Total

UTILITIES

Electricity 450 450 450 450 450 450 450 450 450 450 450 450 4,950

Gas - - - - - - - - - - - - -

Water & Sewer 200 200 200 200 200 200 200 200 200 200 200 200 2,200

TOTAL UTILITIES 650 650 650 650 650 650 650 650 650 650 650 650 7,150

OPERATING & MAINTENANCE EXPENSES

Maintenance Salary 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 17,600

Cleaning Supplies 25 25 25 25 25 25 25 25 25 25 25 25 275

Contract Cleaning/Janitorial 200 200 200 200 200 200 200 200 200 200 200 200 2,200

Contract Labor - - - - - - - - - - - - -

Locks & Keys - - - - - - - - - - - - -

Exterminating 50 50 50 50 50 50 50 50 50 50 50 50 550

Trash Disposal 200 200 200 200 200 200 200 200 200 200 200 200 2,200

Security Services - - - - - - - - - - - - -

Landscaping & Grounds 500 500 500 500 500 500 500 500 500 500 500 500 5,500

Hardware Repair Materials 100 100 100 100 100 100 100 100 100 100 100 100 1,100

Appliance Parts 100 100 100 100 100 100 100 100 100 100 100 100 1,100

Paint & Wallpaper Supplies 150 150 150 150 150 150 150 150 150 150 150 150 1,650

Contract Maintenance - - - - - - - - - - - - -

Plumbing Repairs - Contract - - - - - - - - - - - - -

Electrical & Mechanical 25 25 25 25 25 25 25 25 25 25 25 25 275

Contract Painting - - - - - - - - - - - - -

Roof Repairs - - - - - - - - - - - - -

Fire Protection - - - - - - - - - - - - -

HVAC (Heat, Ventilation, A/C) 125 125 125 125 125 125 125 125 125 125 125 125 1,375

Swimming Pool - - - - - - - - - - - - -

Misc. Maintenance - - - - - - - - - - - - -

TOTAL OPERATING & MAINTENANCE EXPENSES 3,075 3,075 3,075 3,075 3,075 3,075 3,075 3,075 3,075 3,075 3,075 3,075 33,825

TAXES & INSURANCE

Property Tax 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 11,000

Insurance 850 850 850 850 850 850 850 850 850 850 850 850 9,350

Group Insurance - Medical Plans - - - - - - - - - - - - -

Other Taxes & Licenses - - - - - - - - - - - - -

Federal Payroll Tax 450 450 450 450 450 450 450 450 450 450 450 450 4,950

State Payroll Tax 125 125 125 125 125 125 125 125 125 125 125 125 1,375

Social Security and Medicaid 100 100 100 100 100 100 100 100 100 100 100 100 1,100

State Sales Tax on Services (NC) - - - - - - - - - - - - -

County Occupany Tax - - - - - - - - - - - - -

TOTAL TAXES & INSURANCE 2,525 2,525 2,525 2,525 2,525 2,525 2,525 2,525 2,525 2,525 2,525 2,525 27,775

TOTAL OPERATING EXPENSES 10,030 10,030 10,030 10,030 10,030 10,030 10,030 10,030 10,030 10,030 10,030 10,030 110,330

Operating Reserve 7,333 - - - - - - - - - - - 7,333

NET OPERATING INCOME 5,053 12,386 12,386 12,386 12,386 12,386 12,386 12,386 12,386 12,386 12,386 12,386 151,328

Debt Service 9,980 9,980 9,980 9,980 9,980 9,980 9,980 9,980 9,980 9,980 9,980 9,980 9,980

Capital Improvements 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Net Cash Flow (5,927) 1,406 1,406 1,406 1,406 1,406 1,406 1,406 1,406 1,406 1,406 1,406

Operating and Improvement Reserve 187,073 188,479 189,886 191,292 192,699 194,105 195,512 196,918 198,324 199,731 201,137 202,544

Year 1

Pro Forma

1 2 3 4 5 6 7 8 9 10 11 12 Total

Rents

Occupancy 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%

Rent 23,540 23,540 23,540 23,540 23,540 23,540 23,540 23,540 23,540 23,540 23,540 23,540 282,485

Bad Debt 706 706 706 706 706 706 706 706 706 706 706 706 8,475

Concessions 200 200 200 200 200 200 200 200 200 200 200 2,200

Net Rent 22,834 22,634 22,634 22,634 22,634 22,634 22,634 22,634 22,634 22,634 22,634 22,634 271,810

Average Rent Per Unit 544 544 544 544 544 544 544 544 544 544 544 544

OTHER INCOME

Laundry & Vending Income 100 100 100 100 100 100 100 100 100 100 100 100 1,200

Washer/Dryer Rental - - - - - - - - - - - - -

Cable TV - - - - - - - - - - - - -

Late Fees 40 40 40 40 40 40 40 40 40 40 40 40 480

NSF Charge 25 25 25 25 25 25 25 25 25 25 25 25 300

Deposit Forfeit - - - - - - - - - - - - -

Cleaning & Damages 200 200 200 200 200 200 200 200 200 200 200 200 2,400

Termination Fee - - - - - - - - - - - - -

Application Fees 160 160 160 160 160 160 160 160 160 160 160 160 1,920

Utilities - - - - - - - - - - - - -

Pet Fees 35 35 35 35 35 35 35 35 35 35 35 35 420

Interest Income - - - - - - - - - - - - -

Miscellaneous Income 100 100 100 100 100 100 100 100 100 100 100 100 1,200

Storage Income - - - - - - - - - - - - -

Furniture - - - - - - - - - - - - -

Lock Out or Replacement - - - - - - - - - - - - -

TOTAL OTHER INCOME 660 660 660 660 660 660 660 660 660 660 660 660 7,920

Total Income 23,494 23,294 23,294 23,294 23,294 23,294 23,294 23,294 23,294 23,294 23,294 23,294 279,730

EXPENSES

ADMINISTRATIVE EXPENSES

Advertising & Promotion 103 103 103 103 103 103 103 103 103 103 103 103 1,128

Marketing 26 26 26 26 26 26 26 26 26 26 26 26 282

Bank & Finance Charges 15 15 15 15 15 15 15 15 15 15 15 15 169

Finance Charges 10 10 10 10 10 10 10 10 10 10 10 10 113

Credit Verifications 51 51 51 51 51 51 51 51 51 51 51 51 564

Office Supplies 10 10 10 10 10 10 10 10 10 10 10 10 113

Postage 5 5 5 5 5 5 5 5 5 5 5 5 56

Printing & Stationary 5 5 5 5 5 5 5 5 5 5 5 5 56

Dues & Subscriptions 15 15 15 15 15 15 15 15 15 15 15 15 169

Office Expense - - - - - - - - - - - - -

Management Fee 1,230 1,230 1,230 1,230 1,230 1,230 1,230 1,230 1,230 1,230 1,230 1,230 13,530

Office Salaries 2,050 2,050 2,050 2,050 2,050 2,050 2,050 2,050 2,050 2,050 2,050 2,050 22,550

Leasing Salaries - - - - - - - - - - - - -

Leasing Commission 123 123 123 123 123 123 123 123 123 123 123 123 1,353

Legal Fees 51 51 51 51 51 51 51 51 51 51 51 51 564

Audit Fees 51 51 51 51 51 51 51 51 51 51 51 51 564

Telephone 103 103 103 103 103 103 103 103 103 103 103 103 1,128

Miscellaneous Expense 26 26 26 26 26 26 26 26 26 26 26 26 282

Vehicles - - - - - - - - - - - - -

Washer Dryer Rental - - - - - - - - - - - - -

Resident Releations - - - - - - - - - - - - -

Education - - - - - - - - - - - - -

Meals / Entertainment - - - - - - - - - - - - -

Travel and Lodging - - - - - - - - - - - - -

Renovations - - - - - - - - - - - - -

Points Paid on Loans - - - - - - - - - - - - -

Surveying - - - - - - - - - - - - -

Initial Set Up - - - - - - - - - - - - -

Consulting - - - - - - - - - - - - -

TOTAL ADMINISTRATIVE EXPENSES 3,875 3,875 3,875 3,875 3,875 3,875 3,875 3,875 3,875 3,875 3,875 3,875 42,620

Year 2

1 2 3 4 5 6 7 8 9 10 11 12 Total

UTILITIES

Electricity 461 461 461 461 461 461 461 461 461 461 461 461 5,074

Gas - - - - - - - - - - - - -

Water & Sewer 205 205 205 205 205 205 205 205 205 205 205 205 2,255

TOTAL UTILITIES 666 666 666 666 666 666 666 666 666 666 666 666 7,329

OPERATING & MAINTENANCE EXPENSES

Maintenance Salary 1,640 1,640 1,640 1,640 1,640 1,640 1,640 1,640 1,640 1,640 1,640 1,640 18,040

Cleaning Supplies 26 26 26 26 26 26 26 26 26 26 26 26 282

Contract Cleaning/Janitorial 205 205 205 205 205 205 205 205 205 205 205 205 2,255

Contract Labor - - - - - - - - - - - - -

Locks & Keys - - - - - - - - - - - - -

Exterminating 51 51 51 51 51 51 51 51 51 51 51 51 564

Trash Disposal 205 205 205 205 205 205 205 205 205 205 205 205 2,255

Security Services - - - - - - - - - - - - -

Landscaping & Grounds 513 513 513 513 513 513 513 513 513 513 513 513 5,638

Hardware Repair Materials 103 103 103 103 103 103 103 103 103 103 103 103 1,128

Appliance Parts 103 103 103 103 103 103 103 103 103 103 103 103 1,128

Paint & Wallpaper Supplies 154 154 154 154 154 154 154 154 154 154 154 154 1,691

Contract Maintenance - - - - - - - - - - - - -

Plumbing Repairs - Contract - - - - - - - - - - - - -

Electrical & Mechanical 26 26 26 26 26 26 26 26 26 26 26 26 282

Contract Painting - - - - - - - - - - - - -

Roof Repairs - - - - - - - - - - - - -

Fire Protection - - - - - - - - - - - - -

HVAC (Heat, Ventilation, A/C) 128 128 128 128 128 128 128 128 128 128 128 128 1,409

Swimming Pool - - - - - - - - - - - - -

Misc. Maintenance - - - - - - - - - - - - -

TOTAL OPERATING & MAINTENANCE EXPENSES 3,152 3,152 3,152 3,152 3,152 3,152 3,152 3,152 3,152 3,152 3,152 3,152 34,671

TAXES & INSURANCE

Property Tax 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 11,275

Insurance 871 871 871 871 871 871 871 871 871 871 871 871 9,584

Group Insurance - Medical Plans - - - - - - - - - - - - -

Other Taxes & Licenses - - - - - - - - - - - - -

Federal Payroll Tax 461 461 461 461 461 461 461 461 461 461 461 461 5,074

State Payroll Tax 128 128 128 128 128 128 128 128 128 128 128 128 1,409

Social Security and Medicaid 103 103 103 103 103 103 103 103 103 103 103 103 1,128

State Sales Tax on Services (NC) - - - - - - - - - - - - -

County Occupany Tax - - - - - - - - - - - - -

TOTAL TAXES & INSURANCE 2,588 2,588 2,588 2,588 2,588 2,588 2,588 2,588 2,588 2,588 2,588 2,588 28,469

TOTAL OPERATING EXPENSES 10,281 10,281 10,281 10,281 10,281 10,281 10,281 10,281 10,281 10,281 10,281 10,281 113,088

Operating Reserve - - - - - - - - - - - - -

NET OPERATING INCOME 13,213 13,013 13,013 13,013 13,013 13,013 13,013 13,013 13,013 13,013 13,013 13,013 166,642

Debt Service - - - - - - - - - - - - -

Capital Improvements 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Net Cash Flow 12,213 12,013 12,013 12,013 12,013 12,013 12,013 12,013 12,013 12,013 12,013 12,013

Operating and Improvement Reserve 214,757 226,770 238,784 250,797 262,811 274,824 286,838 298,851 310,865 322,878 334,891 346,905

Year 2

Pro Forma

1 2 3 4 5 6 7 8 9 10 11 12 Total

Rents

Occupancy 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%

Rent 24,482 24,482 24,482 24,482 24,482 24,482 24,482 24,482 24,482 24,482 24,482 24,482 293,784

Bad Debt 734 734 734 734 734 734 734 734 734 734 734 734 8,814

Concessions 200 200 200 200 200 200 200 200 200 200 200 2,200

Net Rent 23,748 23,548 23,548 23,548 23,548 23,548 23,548 23,548 23,548 23,548 23,548 23,548 282,771

Average Rent Per Unit 544 544 544 544 544 544 544 544 544 544 544 544

OTHER INCOME

Laundry & Vending Income 100 100 100 100 100 100 100 100 100 100 100 100 1,200

Washer/Dryer Rental - - - - - - - - - - - - -

Cable TV - - - - - - - - - - - - -

Late Fees 40 40 40 40 40 40 40 40 40 40 40 40 480

NSF Charge 25 25 25 25 25 25 25 25 25 25 25 25 300

Deposit Forfeit - - - - - - - - - - - - -

Cleaning & Damages 200 200 200 200 200 200 200 200 200 200 200 200 2,400

Termination Fee - - - - - - - - - - - - -

Application Fees 160 160 160 160 160 160 160 160 160 160 160 160 1,920

Utilities - - - - - - - - - - - - -

Pet Fees 35 35 35 35 35 35 35 35 35 35 35 35 420

Interest Income - - - - - - - - - - - - -

Miscellaneous Income 100 100 100 100 100 100 100 100 100 100 100 100 1,200

Storage Income - - - - - - - - - - - - -

Furniture - - - - - - - - - - - - -

Lock Out or Replacement - - - - - - - - - - - - -

TOTAL OTHER INCOME 660 660 660 660 660 660 660 660 660 660 660 660 7,920

Total Income 24,408 24,208 24,208 24,208 24,208 24,208 24,208 24,208 24,208 24,208 24,208 24,208 290,691

EXPENSES

ADMINISTRATIVE EXPENSES

Advertising & Promotion 105 105 105 105 105 105 105 105 105 105 105 105 1,156

Marketing 26 26 26 26 26 26 26 26 26 26 26 26 289

Bank & Finance Charges 16 16 16 16 16 16 16 16 16 16 16 16 173

Finance Charges 11 11 11 11 11 11 11 11 11 11 11 11 116

Credit Verifications 53 53 53 53 53 53 53 53 53 53 53 53 578

Office Supplies 11 11 11 11 11 11 11 11 11 11 11 11 116

Postage 5 5 5 5 5 5 5 5 5 5 5 5 58

Printing & Stationary 5 5 5 5 5 5 5 5 5 5 5 5 58

Dues & Subscriptions 16 16 16 16 16 16 16 16 16 16 16 16 173

Office Expense - - - - - - - - - - - - -

Management Fee 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 13,868

Office Salaries 2,101 2,101 2,101 2,101 2,101 2,101 2,101 2,101 2,101 2,101 2,101 2,101 23,114

Leasing Salaries - - - - - - - - - - - - -

Leasing Commission 126 126 126 126 126 126 126 126 126 126 126 126 1,387

Legal Fees 53 53 53 53 53 53 53 53 53 53 53 53 578

Audit Fees 53 53 53 53 53 53 53 53 53 53 53 53 578

Telephone 105 105 105 105 105 105 105 105 105 105 105 105 1,156

Miscellaneous Expense 26 26 26 26 26 26 26 26 26 26 26 26 289

Vehicles - - - - - - - - - - - - -

Washer Dryer Rental - - - - - - - - - - - - -

Resident Releations - - - - - - - - - - - - -

Education - - - - - - - - - - - - -

Meals / Entertainment - - - - - - - - - - - - -

Travel and Lodging - - - - - - - - - - - - -

Renovations - - - - - - - - - - - - -

Points Paid on Loans - - - - - - - - - - - - -

Surveying - - - - - - - - - - - - -

Initial Set Up - - - - - - - - - - - - -

Consulting - - - - - - - - - - - - -

TOTAL ADMINISTRATIVE EXPENSES 3,971 3,971 3,971 3,971 3,971 3,971 3,971 3,971 3,971 3,971 3,971 3,971 43,685

Year 3

1 2 3 4 5 6 7 8 9 10 11 12 Total

UTILITIES

Electricity 473 473 473 473 473 473 473 473 473 473 473 473 5,201

Gas - - - - - - - - - - - - -

Water & Sewer 210 210 210 210 210 210 210 210 210 210 210 210 2,311

TOTAL UTILITIES 683 683 683 683 683 683 683 683 683 683 683 683 7,512

OPERATING & MAINTENANCE EXPENSES

Maintenance Salary 1,681 1,681 1,681 1,681 1,681 1,681 1,681 1,681 1,681 1,681 1,681 1,681 18,491

Cleaning Supplies 26 26 26 26 26 26 26 26 26 26 26 26 289

Contract Cleaning/Janitorial 210 210 210 210 210 210 210 210 210 210 210 210 2,311

Contract Labor - - - - - - - - - - - - -

Locks & Keys - - - - - - - - - - - - -

Exterminating 53 53 53 53 53 53 53 53 53 53 53 53 578

Trash Disposal 210 210 210 210 210 210 210 210 210 210 210 210 2,311

Security Services - - - - - - - - - - - - -

Landscaping & Grounds 525 525 525 525 525 525 525 525 525 525 525 525 5,778

Hardware Repair Materials 105 105 105 105 105 105 105 105 105 105 105 105 1,156

Appliance Parts 105 105 105 105 105 105 105 105 105 105 105 105 1,156

Paint & Wallpaper Supplies 158 158 158 158 158 158 158 158 158 158 158 158 1,734

Contract Maintenance - - - - - - - - - - - - -

Plumbing Repairs - Contract - - - - - - - - - - - - -

Electrical & Mechanical 26 26 26 26 26 26 26 26 26 26 26 26 289

Contract Painting - - - - - - - - - - - - -

Roof Repairs - - - - - - - - - - - - -

Fire Protection - - - - - - - - - - - - -

HVAC (Heat, Ventilation, A/C) 131 131 131 131 131 131 131 131 131 131 131 131 1,445

Swimming Pool - - - - - - - - - - - - -

Misc. Maintenance - - - - - - - - - - - - -

TOTAL OPERATING & MAINTENANCE EXPENSES 3,231 3,231 3,231 3,231 3,231 3,231 3,231 3,231 3,231 3,231 3,231 3,231 35,537

TAXES & INSURANCE

Property Tax 1,051 1,051 1,051 1,051 1,051 1,051 1,051 1,051 1,051 1,051 1,051 1,051 11,557

Insurance 893 893 893 893 893 893 893 893 893 893 893 893 9,823

Group Insurance - Medical Plans - - - - - - - - - - - - -

Other Taxes & Licenses - - - - - - - - - - - - -

Federal Payroll Tax 473 473 473 473 473 473 473 473 473 473 473 473 5,201

State Payroll Tax 131 131 131 131 131 131 131 131 131 131 131 131 1,445

Social Security and Medicaid 105 105 105 105 105 105 105 105 105 105 105 105 1,156

State Sales Tax on Services (NC) - - - - - - - - - - - - -

County Occupany Tax - - - - - - - - - - - - -

TOTAL TAXES & INSURANCE 2,653 2,653 2,653 2,653 2,653 2,653 2,653 2,653 2,653 2,653 2,653 2,653 29,181

TOTAL OPERATING EXPENSES 10,538 10,538 10,538 10,538 10,538 10,538 10,538 10,538 10,538 10,538 10,538 10,538 115,915

Operating Reserve - - - - - - - - - - - - -

NET OPERATING INCOME 13,870 13,670 13,670 13,670 13,670 13,670 13,670 13,670 13,670 13,670 13,670 13,670 174,775

Debt Service - - - - - - - - - - - - -

Capital Improvements 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Net Cash Flow 12,870 12,670 12,670 12,670 12,670 12,670 12,670 12,670 12,670 12,670 12,670 12,670

Operating and Improvement Reserve 359,775 372,444 385,114 397,784 410,454 423,124 435,793 448,463 461,133 473,803 486,473 499,142

Year 3

Pro Forma

1 2 3 4 5 6 7 8 9 10 11 12 Total

Rents

Occupancy 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%

Rent 25,461 25,461 25,461 25,461 25,461 25,461 25,461 25,461 25,461 25,461 25,461 25,461 305,536

Bad Debt 764 764 764 764 764 764 764 764 764 764 764 764 9,166

Concessions 200 200 200 200 200 200 200 200 200 200 200 2,200

Net Rent 24,697 24,497 24,497 24,497 24,497 24,497 24,497 24,497 24,497 24,497 24,497 24,497 294,169

Average Rent Per Unit 544 544 544 544 544 544 544 544 544 544 544 544

OTHER INCOME

Laundry & Vending Income 100 100 100 100 100 100 100 100 100 100 100 100 1,200

Washer/Dryer Rental - - - - - - - - - - - - -

Cable TV - - - - - - - - - - - - -

Late Fees 40 40 40 40 40 40 40 40 40 40 40 40 480

NSF Charge 25 25 25 25 25 25 25 25 25 25 25 25 300

Deposit Forfeit - - - - - - - - - - - - -

Cleaning & Damages 200 200 200 200 200 200 200 200 200 200 200 200 2,400

Termination Fee - - - - - - - - - - - - -

Application Fees 160 160 160 160 160 160 160 160 160 160 160 160 1,920

Utilities - - - - - - - - - - - - -

Pet Fees 35 35 35 35 35 35 35 35 35 35 35 35 420

Interest Income - - - - - - - - - - - - -

Miscellaneous Income 100 100 100 100 100 100 100 100 100 100 100 100 1,200

Storage Income - - - - - - - - - - - - -

Furniture - - - - - - - - - - - - -

Lock Out or Replacement - - - - - - - - - - - - -

TOTAL OTHER INCOME 660 660 660 660 660 660 660 660 660 660 660 660 7,920

Total Income 25,357 25,157 25,157 25,157 25,157 25,157 25,157 25,157 25,157 25,157 25,157 25,157 302,089

EXPENSES

ADMINISTRATIVE EXPENSES

Advertising & Promotion 108 108 108 108 108 108 108 108 108 108 108 108 1,185

Marketing 27 27 27 27 27 27 27 27 27 27 27 27 296

Bank & Finance Charges 16 16 16 16 16 16 16 16 16 16 16 16 178

Finance Charges 11 11 11 11 11 11 11 11 11 11 11 11 118

Credit Verifications 54 54 54 54 54 54 54 54 54 54 54 54 592

Office Supplies 11 11 11 11 11 11 11 11 11 11 11 11 118

Postage 5 5 5 5 5 5 5 5 5 5 5 5 59

Printing & Stationary 5 5 5 5 5 5 5 5 5 5 5 5 59

Dues & Subscriptions 16 16 16 16 16 16 16 16 16 16 16 16 178

Office Expense - - - - - - - - - - - - -

Management Fee 1,292 1,292 1,292 1,292 1,292 1,292 1,292 1,292 1,292 1,292 1,292 1,292 14,215

Office Salaries 2,154 2,154 2,154 2,154 2,154 2,154 2,154 2,154 2,154 2,154 2,154 2,154 23,692

Leasing Salaries - - - - - - - - - - - - -

Leasing Commission 129 129 129 129 129 129 129 129 129 129 129 129 1,421

Legal Fees 54 54 54 54 54 54 54 54 54 54 54 54 592

Audit Fees 54 54 54 54 54 54 54 54 54 54 54 54 592

Telephone 108 108 108 108 108 108 108 108 108 108 108 108 1,185

Miscellaneous Expense 27 27 27 27 27 27 27 27 27 27 27 27 296

Vehicles - - - - - - - - - - - - -

Washer Dryer Rental - - - - - - - - - - - - -

Resident Releations - - - - - - - - - - - - -

Education - - - - - - - - - - - - -

Meals / Entertainment - - - - - - - - - - - - -

Travel and Lodging - - - - - - - - - - - - -

Renovations - - - - - - - - - - - - -

Points Paid on Loans - - - - - - - - - - - - -

Surveying - - - - - - - - - - - - -

Initial Set Up - - - - - - - - - - - - -

Consulting - - - - - - - - - - - - -

TOTAL ADMINISTRATIVE EXPENSES 4,071 4,071 4,071 4,071 4,071 4,071 4,071 4,071 4,071 4,071 4,071 4,071 44,777

Year 4

1 2 3 4 5 6 7 8 9 10 11 12 Total

UTILITIES

Electricity 485 485 485 485 485 485 485 485 485 485 485 485 5,331

Gas - - - - - - - - - - - - -

Water & Sewer 215 215 215 215 215 215 215 215 215 215 215 215 2,369

TOTAL UTILITIES 700 700 700 700 700 700 700 700 700 700 700 700 7,700

OPERATING & MAINTENANCE EXPENSES

Maintenance Salary 1,723 1,723 1,723 1,723 1,723 1,723 1,723 1,723 1,723 1,723 1,723 1,723 18,953

Cleaning Supplies 27 27 27 27 27 27 27 27 27 27 27 27 296

Contract Cleaning/Janitorial 215 215 215 215 215 215 215 215 215 215 215 215 2,369

Contract Labor - - - - - - - - - - - - -

Locks & Keys - - - - - - - - - - - - -

Exterminating 54 54 54 54 54 54 54 54 54 54 54 54 592

Trash Disposal 215 215 215 215 215 215 215 215 215 215 215 215 2,369

Security Services - - - - - - - - - - - - -

Landscaping & Grounds 538 538 538 538 538 538 538 538 538 538 538 538 5,923

Hardware Repair Materials 108 108 108 108 108 108 108 108 108 108 108 108 1,185

Appliance Parts 108 108 108 108 108 108 108 108 108 108 108 108 1,185

Paint & Wallpaper Supplies 162 162 162 162 162 162 162 162 162 162 162 162 1,777

Contract Maintenance - - - - - - - - - - - - -

Plumbing Repairs - Contract - - - - - - - - - - - - -

Electrical & Mechanical 27 27 27 27 27 27 27 27 27 27 27 27 296

Contract Painting - - - - - - - - - - - - -

Roof Repairs - - - - - - - - - - - - -

Fire Protection - - - - - - - - - - - - -

HVAC (Heat, Ventilation, A/C) 135 135 135 135 135 135 135 135 135 135 135 135 1,481

Swimming Pool - - - - - - - - - - - - -

Misc. Maintenance - - - - - - - - - - - - -

TOTAL OPERATING & MAINTENANCE EXPENSES 3,311 3,311 3,311 3,311 3,311 3,311 3,311 3,311 3,311 3,311 3,311 3,311 36,426

TAXES & INSURANCE

Property Tax 1,077 1,077 1,077 1,077 1,077 1,077 1,077 1,077 1,077 1,077 1,077 1,077 11,846

Insurance 915 915 915 915 915 915 915 915 915 915 915 915 10,069

Group Insurance - Medical Plans - - - - - - - - - - - - -

Other Taxes & Licenses - - - - - - - - - - - - -

Federal Payroll Tax 485 485 485 485 485 485 485 485 485 485 485 485 5,331

State Payroll Tax 135 135 135 135 135 135 135 135 135 135 135 135 1,481

Social Security and Medicaid 108 108 108 108 108 108 108 108 108 108 108 108 1,185

State Sales Tax on Services (NC) - - - - - - - - - - - - -

County Occupany Tax - - - - - - - - - - - - -

TOTAL TAXES & INSURANCE 2,719 2,719 2,719 2,719 2,719 2,719 2,719 2,719 2,719 2,719 2,719 2,719 29,911

TOTAL OPERATING EXPENSES 10,801 10,801 10,801 10,801 10,801 10,801 10,801 10,801 10,801 10,801 10,801 10,801 118,813

Operating Reserve - - - - - - - - - - - - -

NET OPERATING INCOME 14,556 14,356 14,356 14,356 14,356 14,356 14,356 14,356 14,356 14,356 14,356 14,356 183,276

Debt Service - - - - - - - - - - - - -

Capital Improvements 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Net Cash Flow 13,556 13,356 13,356 13,356 13,356 13,356 13,356 13,356 13,356 13,356 13,356 13,356

Operating and Improvement Reserve 512,699 526,055 539,411 552,767 566,124 579,480 592,836 606,192 619,549 632,905 646,261 659,617

Year 4

Pro Forma

1 2 3 4 5 6 7 8 9 10 11 12 Total

Rents

Occupancy 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%

Rent 26,480 26,480 26,480 26,480 26,480 26,480 26,480 26,480 26,480 26,480 26,480 26,480 317,757

Bad Debt 794 794 794 794 794 794 794 794 794 794 794 794 9,533

Concessions 200 200 200 200 200 200 200 200 200 200 200 2,200

Net Rent 25,685 25,485 25,485 25,485 25,485 25,485 25,485 25,485 25,485 25,485 25,485 25,485 306,024

Average Rent Per Unit 544 544 544 544 544 544 544 544 544 544 544 544

OTHER INCOME

Laundry & Vending Income 100 100 100 100 100 100 100 100 100 100 100 100 1,200

Washer/Dryer Rental - - - - - - - - - - - - -

Cable TV - - - - - - - - - - - - -

Late Fees 40 40 40 40 40 40 40 40 40 40 40 40 480

NSF Charge 25 25 25 25 25 25 25 25 25 25 25 25 300

Deposit Forfeit - - - - - - - - - - - - -

Cleaning & Damages 200 200 200 200 200 200 200 200 200 200 200 200 2,400

Termination Fee - - - - - - - - - - - - -

Application Fees 160 160 160 160 160 160 160 160 160 160 160 160 1,920

Utilities - - - - - - - - - - - - -

Pet Fees 35 35 35 35 35 35 35 35 35 35 35 35 420

Interest Income - - - - - - - - - - - - -

Miscellaneous Income 100 100 100 100 100 100 100 100 100 100 100 100 1,200

Storage Income - - - - - - - - - - - - -

Furniture - - - - - - - - - - - - -

Lock Out or Replacement - - - - - - - - - - - - -

TOTAL OTHER INCOME 660 660 660 660 660 660 660 660 660 660 660 660 7,920

Total Income 26,345 26,145 26,145 26,145 26,145 26,145 26,145 26,145 26,145 26,145 26,145 26,145 313,944

EXPENSES

ADMINISTRATIVE EXPENSES

Advertising & Promotion 110 110 110 110 110 110 110 110 110 110 110 110 1,214

Marketing 28 28 28 28 28 28 28 28 28 28 28 28 304

Bank & Finance Charges 17 17 17 17 17 17 17 17 17 17 17 17 182

Finance Charges 11 11 11 11 11 11 11 11 11 11 11 11 121

Credit Verifications 55 55 55 55 55 55 55 55 55 55 55 55 607

Office Supplies 11 11 11 11 11 11 11 11 11 11 11 11 121

Postage 6 6 6 6 6 6 6 6 6 6 6 6 61

Printing & Stationary 6 6 6 6 6 6 6 6 6 6 6 6 61

Dues & Subscriptions 17 17 17 17 17 17 17 17 17 17 17 17 182

Office Expense - - - - - - - - - - - - -

Management Fee 1,325 1,325 1,325 1,325 1,325 1,325 1,325 1,325 1,325 1,325 1,325 1,325 14,570

Office Salaries 2,208 2,208 2,208 2,208 2,208 2,208 2,208 2,208 2,208 2,208 2,208 2,208 24,284

Leasing Salaries - - - - - - - - - - - - -

Leasing Commission 132 132 132 132 132 132 132 132 132 132 132 132 1,457

Legal Fees 55 55 55 55 55 55 55 55 55 55 55 55 607

Audit Fees 55 55 55 55 55 55 55 55 55 55 55 55 607

Telephone 110 110 110 110 110 110 110 110 110 110 110 110 1,214

Miscellaneous Expense 28 28 28 28 28 28 28 28 28 28 28 28 304

Vehicles - - - - - - - - - - - - -

Washer Dryer Rental - - - - - - - - - - - - -

Resident Releations - - - - - - - - - - - - -

Education - - - - - - - - - - - - -

Meals / Entertainment - - - - - - - - - - - - -

Travel and Lodging - - - - - - - - - - - - -

Renovations - - - - - - - - - - - - -

Points Paid on Loans - - - - - - - - - - - - -

Surveying - - - - - - - - - - - - -

Initial Set Up - - - - - - - - - - - - -

Consulting - - - - - - - - - - - - -

TOTAL ADMINISTRATIVE EXPENSES 4,172 4,172 4,172 4,172 4,172 4,172 4,172 4,172 4,172 4,172 4,172 4,172 45,897

Year 5

1 2 3 4 5 6 7 8 9 10 11 12 Total

UTILITIES

Electricity 497 497 497 497 497 497 497 497 497 497 497 497 5,464

Gas - - - - - - - - - - - - -

Water & Sewer 221 221 221 221 221 221 221 221 221 221 221 221 2,428

TOTAL UTILITIES 717 717 717 717 717 717 717 717 717 717 717 717 7,892

OPERATING & MAINTENANCE EXPENSES

Maintenance Salary 1,766 1,766 1,766 1,766 1,766 1,766 1,766 1,766 1,766 1,766 1,766 1,766 19,427

Cleaning Supplies 28 28 28 28 28 28 28 28 28 28 28 28 304

Contract Cleaning/Janitorial 221 221 221 221 221 221 221 221 221 221 221 221 2,428

Contract Labor - - - - - - - - - - - - -

Locks & Keys - - - - - - - - - - - - -

Exterminating 55 55 55 55 55 55 55 55 55 55 55 55 607

Trash Disposal 221 221 221 221 221 221 221 221 221 221 221 221 2,428

Security Services - - - - - - - - - - - - -

Landscaping & Grounds 552 552 552 552 552 552 552 552 552 552 552 552 6,071

Hardware Repair Materials 110 110 110 110 110 110 110 110 110 110 110 110 1,214

Appliance Parts 110 110 110 110 110 110 110 110 110 110 110 110 1,214

Paint & Wallpaper Supplies 166 166 166 166 166 166 166 166 166 166 166 166 1,821

Contract Maintenance - - - - - - - - - - - - -

Plumbing Repairs - Contract - - - - - - - - - - - - -

Electrical & Mechanical 28 28 28 28 28 28 28 28 28 28 28 28 304

Contract Painting - - - - - - - - - - - - -

Roof Repairs - - - - - - - - - - - - -

Fire Protection - - - - - - - - - - - - -

HVAC (Heat, Ventilation, A/C) 138 138 138 138 138 138 138 138 138 138 138 138 1,518

Swimming Pool - - - - - - - - - - - - -

Misc. Maintenance - - - - - - - - - - - - -

TOTAL OPERATING & MAINTENANCE EXPENSES 3,394 3,394 3,394 3,394 3,394 3,394 3,394 3,394 3,394 3,394 3,394 3,394 37,336

TAXES & INSURANCE

Property Tax 1,104 1,104 1,104 1,104 1,104 1,104 1,104 1,104 1,104 1,104 1,104 1,104 12,142

Insurance 938 938 938 938 938 938 938 938 938 938 938 938 10,321

Group Insurance - Medical Plans - - - - - - - - - - - - -

Other Taxes & Licenses - - - - - - - - - - - - -

Federal Payroll Tax 497 497 497 497 497 497 497 497 497 497 497 497 5,464

State Payroll Tax 138 138 138 138 138 138 138 138 138 138 138 138 1,518

Social Security and Medicaid 110 110 110 110 110 110 110 110 110 110 110 110 1,214

State Sales Tax on Services (NC) - - - - - - - - - - - - -

County Occupany Tax - - - - - - - - - - - - -

TOTAL TAXES & INSURANCE 2,787 2,787 2,787 2,787 2,787 2,787 2,787 2,787 2,787 2,787 2,787 2,787 30,658

TOTAL OPERATING EXPENSES 11,071 11,071 11,071 11,071 11,071 11,071 11,071 11,071 11,071 11,071 11,071 11,071 121,784

Operating Reserve - - - - - - - - - - - - -

NET OPERATING INCOME 15,274 15,074 15,074 15,074 15,074 15,074 15,074 15,074 15,074 15,074 15,074 15,074 192,161

Debt Service - - - - - - - - - - - - -

Capital Improvements 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Net Cash Flow 14,274 14,074 14,074 14,074 14,074 14,074 14,074 14,074 14,074 14,074 14,074 14,074

Operating and Improvement Reserve 673,891 687,965 702,040 716,114 730,188 744,262 758,336 772,410 786,484 800,558 814,632 828,707

Year 5