Investment Assumptions
Price of Property see Development Cost Summary
Closing CostsNone
Date of Acquisition1 January 2003
Holding Period10 Years
Inflation Rate3% per Year
Sale Price MethodCapitalize Last Year's NOI
Sale Price Parameter11% Net Cap Rate
Selling Costs6% of Sale Price
Investor's Assumptions
General Vacancy & Credit LossZero
Tax Rate - First Year39.6%
Tax Rate - Following Years39.6%
Capital Gain Rate20%
Cost Recovery Recapture Rate25% - Losses Carried Forward
Present Value Discount Rate Before Debt10% per Year
Present Value Discount Rate Before Tax10% per Year
Present Value Discount Rate After Tax10% per Year
Members Assumptions
Total Initial Investment$2,100,000.00
Working Capital Minimum$50,000.00
Working Capital Maximum$50,000.00
Working Capital Interest RateZero
Managing Member Loan Interest Rate0% per Year
Managing Member Tax Rate39% per Year
Number of Units Issued21
Cash Distribution PatternQuarterly in Jan, etc
Distribution Assumptions
Cash Distribution Start Date1 June 2004
Preferred Return to Members8% Cumulative
Cash to Members50%
Net Taxable Income to Members50%
Investment Return to Members100% of Investment
Fee to Managing Member on SaleNone
Sale Proceeds to Members80%
Capital Gain to Members80%
Investment Tax Credit to MembersZero
Hard Costs Development Spending Assumptions
Development CostNone
Depreciable LifeNon-Depreciable Asset
Depreciation MethodStraight Line
Include in DrawsZero
Expenditure StartNone
Depreciation Start DateNone
Expenditure Months0 Months
Land Development Spending Assumptions
Development Cost$2,850,000.00
Depreciable LifeNon-Depreciable Asset
Depreciation MethodStraight Line
Include in Draws50%
Expenditure Start1 March 2003
Depreciation Start Date1 October 2003
Expenditure Months1 Month
Sitework Development Spending Assumptions
Development Cost$855,000.00
Depreciable Life27.5 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 March 2003
Depreciation Start Date1 October 2003
Expenditure Months1 Month
Foundations & Floor Slab Development Spending Assumptions
Development Cost$389,200.00
Depreciable Life27.5 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 March 2003
Depreciation Start Date1 October 2003
Expenditure Months1 Month
Structure Development Spending Assumptions
Development Cost$266,000.00
Depreciable Life27.5 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 April 2003
Depreciation Start Date1 October 2003
Expenditure Months1 Month
Building Skin Development Spending Assumptions
Development Cost$461,600.00
Depreciable Life27.5 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 May 2003
Depreciation Start Date1 October 2003
Expenditure Months1 Month
Doors, Balconies Development Spending Assumptions
Development Cost$258,800.00
Depreciable Life27.5 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 May 2003
Depreciation Start Date1 October 2003
Expenditure Months1 Month
Roof Systems Development Spending Assumptions
Development Cost$206,400.00
Depreciable Life27.5 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 June 2003
Depreciation Start Date1 October 2003
Expenditure Months1 Month
Electrical Development Spending Assumptions
Development Cost$33,600.00
Depreciable Life27.5 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 July 2003
Depreciation Start Date1 October 2003
Expenditure Months1 Month
Exterior Contingency Development Spending Assumptions
Development Cost$79,200.00
Depreciable Life27.5 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 May 2003
Depreciation Start Date1 October 2003
Expenditure Months1 Month
Pool Development Spending Assumptions
Development Cost$150,000.00
Depreciable Life27.5 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 May 2003
Depreciation Start Date1 October 2003
Expenditure Months1 Month
Landscaping Development Spending Assumptions
Development Cost$110,400.00
Depreciable Life27.5 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 August 2003
Depreciation Start Date1 October 2003
Expenditure Months1 Month
Soft Costs Development Spending Assumptions
Development CostNone
Depreciable LifeNon-Depreciable Asset
Depreciation MethodStraight Line
Include in DrawsZero
Expenditure StartNone
Depreciation Start DateNone
Expenditure Months0 Months
Permits Development Spending Assumptions
Development Cost$10,000.00
Depreciable Life27.5 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 February 2003
Depreciation Start Date1 October 2003
Expenditure Months1 Month
Legal & Title Development Spending Assumptions
Development Cost$18,000.00
Depreciable Life27.5 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 February 2003
Depreciation Start Date1 October 2003
Expenditure Months1 Month
Depreciation Assumptions
Depreciable AmountNone
Depreciable Life39 Years
Depreciation MethodStraight Line
Depreciation Start Dateat Acquisition
Construction Draw Construction Draw Assumptions
Draw Percent100%
Draw Rate9% Annually
Draw Period1 Month
Draw TreatmentPaid and Capitalized
Draw LimitNone
Draw PointsNone
Permanent Permanent Loan Assumptions
Loan Amount95% of Draw Loan Balance
Loan Interest Rate10% Annually
Original Loan Period30 Years
Loan Origination Date1 January 2004
Loan TypeMonthly Payments, Amortizing
Prepayment PenaltyNone
Amortize Points for TaxAmortized over Loan Life
Loan Points ChargedNone
Loan Assumptions
Loan AmountNone
Loan Interest Rate0% Annually
Original Loan Period30 Years
Loan Origination Dateat Acquisition
Loan TypeMonthly Payments, Amortizing
Balloon Payment DueNone
Amortize Points for TaxAmortized over Loan Life
Loan Points ChargedNone
Studio Revenue Assumptions
Annual Revenue$900.00
Revenue Start Date1 October 2003
Revenue Period1 Year
Revenue Growth MethodRamp Begin$ to End$ at $108,000.00
Vacancy Factor5%
Studio Continued Revenue Assumptions
Annual RevenueContinuation
Revenue Start DateContinuation
Revenue PeriodUntil Projected Sale
Revenue Growth MethodAnnual at the Inflation Rate
Vacancy Factor10%
Description
One Bedroom Revenue Assumptions
Annual Revenue$1,250.00
Revenue Start Date1 October 2003
Revenue Period1 Year
Revenue Growth MethodRamp Begin$ to End$ at $225,000.00
Vacancy Factor5%
One Bedroom Continued Revenue Assumptions
Annual RevenueContinuation
Revenue Start DateContinuation
Revenue PeriodUntil Projected Sale
Revenue Growth MethodAnnual at the Inflation Rate
Vacancy Factor10%
Description
2 Bedroom 1 Bath Revenue Assumptions
Annual Revenue$1,500.00
Revenue Start Date1 October 2003
Revenue Period1.25 Years
Revenue Growth MethodRamp Begin$ to End$ at $450,000.00
Vacancy Factor5%
2 Bedroom 1 Bath Continued Revenue Assumptions
Annual RevenueContinuation
Revenue Start DateContinuation
Revenue PeriodUntil Projected Sale
Revenue Growth MethodAnnual at the Inflation Rate
Vacancy Factor10%
Description
2 Bedroom 2 Bath Revenue Assumptions
Annual Revenue$1,700.00
Revenue Start Date1 October 2003
Revenue Period1.25 Years
Revenue Growth MethodRamp Begin$ to End$ at $306,000.00
Vacancy Factor5%
2 Bedroom 2 Bath Continued Revenue Assumptions
Annual RevenueContinuation
Revenue Start DateContinuation
Revenue PeriodUntil Projected Sale
Revenue Growth MethodAnnual at 1% Under Inflation
Vacancy Factor10%
Description
Laundry Revenue Assumptions
Annual Revenue$150.00
Revenue Start Date1 October 2003
Revenue Period1 Year
Revenue Growth MethodRamp Begin$ to End$ at $3,000.00
Vacancy Factor75%
Laundry Continued Revenue Assumptions
Annual RevenueContinuation
Revenue Start DateContinuation
Revenue PeriodUntil Projected Sale
Revenue Growth MethodAnnual at the Inflation Rate
Vacancy Factor10%
Description
Expense Assumptions
Annual ExpenseNone
Expense Start Dateat Acquisition
Expense PeriodUntil Projected Sale
Expense Growth MethodNo Growth
Property Tax Expense Assumptions
Annual Expense$35,284.00
Expense Start Dateat Acquisition
Expense PeriodUntil Projected Sale
Expense Growth MethodAnnual at 2% Annually
Gardner Expense Assumptions
Annual Expense$1,000.00
Expense Start Dateat Acquisition
Expense PeriodUntil Projected Sale
Expense Growth MethodAnnual at the Inflation Rate
Insurance Expense Assumptions
Annual Expense$3,000.00
Expense Start Dateat Acquisition
Expense PeriodUntil Projected Sale
Expense Growth MethodAnnual at the Inflation Rate
Pool Expense Assumptions
Annual Expense$1,000.00
Expense Start Dateat Acquisition
Expense PeriodUntil Projected Sale
Expense Growth MethodAnnual at the Inflation Rate
Management as % of EI Assumptions
Expense Percentage5% of Effective Income
Expense Start Dateat Acquisition
Expense PeriodUntil Projected Sale
Utilities as % of EI Assumptions
Expense Percentage3% of Effective Income
Expense Start Dateat Acquisition
Expense PeriodUntil Projected Sale
Reserve as % of EI Assumptions
Expense Percentage1% of Effective Income
Expense Start Dateat Acquisition
Expense PeriodUntil Projected Sale