1 2 Bed/Bath 3 1 bed 1 bath 4 2 bed 1 bath 5 3 bed 2 bath A B C Unit Mix Market Rents Current Rents # of Units SSS $ 2,200 $ 1,500 $ 3,500 $ 2,200 $ 5,500 $ 3,500 532 5 6 7 8 Rent Growth 9 Expense Growth 10 Vacancy 11 Management Operating Assumptions 3% Stabilized Value 39 Cap Rate 5% Construction 12 Maintenance 13 W&S 14 Taxes 15 Insurance 16 Utilities 17 18 19 20 Initial Draw % 21 Construction Draw % 22 Down Payment 23 Interest Rate 24 Term 25 Amortization 26 27 28 29 LTARV $4,443,862 E F G H I J K L Year 1 2 3 4 5 6.50% $2,750,000 W&S 5% Purchase Price $ 250,000 5% Stabilized Annual NOI $ 288,851 100.00 Stabilized Monthly NOI $ 22,000.00 Sales Cost SSSS $ 7,500.00 Acquisition Closing Cost $ 15.00 $ 24,071 5% 4% Bridge Debt Terms 78.18% $ 2,150,000 100.00% $ 250,000 21.82% $ 600,000 12.00% 12 Month 1/0 Bridge Lender's Debt Covenants Value Based Covenants 70.00% 30 Max Refinance Loan Amount Based on LTV $ 3,110,703 PGI $ 253,200 $ Vacancy EGI $ (12,660) $ $ 240,540 $ 390,000 $401,700 $413,751 $ (19,500) $ (20,085) $ (20,688) $ 370,500 $ 381,615 $ 393,063 $ 426,164 (21,308) 404,855 Management $ 12,027 $ Maintenance $ 12,027 $ $ 12,000 $ Taxes $ 22,000 $ Insurance $ Utilities $ 7,500 $ 1,800 $ 18,525 $ 19,081 $ 19,653 $ 18,525 $ 19,081 $ 19,653 $ 12,360 $ 12,731 $ 13,113 $ 22,660 $ 23,340 $ 24,040 $ 7,725 $ 7,957 $ 8,195 $ 20,243 20,243 13,506 24,761 8,441 Total OPEX $ 67,354 $ 1,854 $ 1,910 $ 1,967 $ 81,649 $ 84,098 $ 86,621 $ 2,026 89,220 NOI Debt Service Bridge $ 173,186 $ $(288,000) $ $ $ Debt Service Refinance Cash Flow After Debt Service $ $ $(114,814) $ 288,851 $297,517 $306,442 $ $ (240,709) $(240,709) $(240,709) $ (240,709) 48,142 $ 56,807 $ 65,733 $ 74,926 315,635 Refinance Proceeds $ 2,868,804 Net Sales Price Payoff $ (2,400,000) $ 4,613,131 $ (2,750,054) Cash To Close $(710,000) Project Level Cash Flows Equity Balance $(824,814) $ 516,946 $ 56,807 $ 65,733 $ 1,938,003 $(824,814) $ (307,868) $(251,060) $(185,327) $ 1,752,676 Cash on Cash Returns 6% 79% 8% 9% Average COC Returns IRR 7.4% 46.2%