Loan Assumptions: 60% Down Payment, 7.5% interest rate, 30-year fixed rate and 2 points loan cost. LLC fees: Setup fee of $500, first year LLC license fee of $800, Statement of Information of $20, CPA fee of $500 and a minimum business checking account balance of $3000. (Onetime payment for all LLC expenses) Rental Income: Unit # Unit Mix Rental Income Unit 1 4 Beds and 3 Baths $4200 Unit 2 4 Beds and 3 Baths $4200 Property operational cost: Tenants pay for all utilities, property insurance of $1800 per year, property tax rate of 1.25%, maintenance cost of 3%, vacancy of 3% and mgt fees of 5%, gardening cost of $200 per month. Problem: You are about to purchase this property on your own, you consider it too risky. You decide to purchase this duplex with three other partners (25% per share). You decide to set up an LLC to hold the property with other shareholders. How much total funding would you need and for each 25% share? (Assume 3 months of holding costs and round up to the nearest ten thousand dollars, hint: total initial cash investment, 3 months of mortgages, 3 months of operating expenses, and LLC setup fees) Total Funding (Assume 0% Income at this point): Each Share (25%):

Stress Test: Assume you have $10,000 in the bank and the full year of property insurance has been paid, one payment of property tax left, what is the funding needed when rent collection goes from 0%, 25%, 75% and 100%?