USA Courtney Downs LeaseCo, LLC

Balance Sheet
Books = Accrual
Oct 2006

ASSETS

Cash
Operating Cash 44,293.35
Money Market 0.00
Security Deposits 65,375.06
Total Cash $109,668.41

OTHER ASSETS
Accounts Receivable 9,176.24
Prepaid Expenses 37,590.22
Tax Escrow 204,623.33
Cash in Bank-Wrk Cap Reserve 81,938.44
Capital / Repair Escrow 200,000.00
Total Other Assets 533,328.23

Total ASSETS 642,996.64

LIABILITIES & CAPITAL

LIABILITIES
Accounts Payable - Trade 26,414.18
Other Accounts Payable 575,264.08
Accrued Taxes 275,206.02
Prepaid Rent 5,386.24
Security Deposits 65,150.56
Notes Payable (328.39)
Total Liabilities 947,092.69

CAPITAL

Owners Equity 100.00

Retained Earnings (304,196.05)
Total Capital (304,096.05)

Total LIABILITIES & CAPITAL 642,996.64

 USA Courtney Downs LeaseCo, LLC
Cash Flow (Actual + Budget)
Books = Accrual
For the 12 Months Ending Dec 2006

Jan 2006 Feb 2006 Mar 2006 Apr 2006 May 2006 Jun 2006 Jul 2006 Aug 2006 Sep 2006 Oct 2006 Nov 2006 Dec 2006 12 Month $/ $/
Account Actual Actual Actual Actual Actual Actual Actual Actual Actual Reforecast Reforecast Reforecast Total Unit Sq. Ft.
342 313,778
Revenue
Gross Potential Rent 356,941 356,261 353,425 356,370 356,790 352,042 356,753 356,720 356,720 364,160 364,160 364,160 4,294,502 12,557.02 13.69
- Vacancy (50,457) (41,504) (32,721) (25,521) (27,566) (20,448) (24,375) (29,656) (19,795) (36,416) (40,058) (40,058) (388,576) (1,136.19) (1.24)
- Concessions & Disc. (80,765) (83,296) (83,632) (87,552) (89,252) (91,481) (83,568) (82,402) (79,734) (80,000) (75,000) (75,000) (991,681) (2,899.65) (3.16)
- Other Write-offs & Adj. (5,393) (4,621) (13,129) (3,761) (3,761) (3,761) (8,525) (4,902) (6,891) (6,085) (6,085) (6,085) (72,997) (213.44) (0.23)
Total Rental Income 220,326 226,840 223,943 239,537 236,211 236,353 240,285 239,760 250,300 241,659 243,017 243,017 2,841,248 8,307.74 9.05

Other Income 26,619 19,852 32,398 25,588 26,964 20,730 20,479 29,442 23,112 20,445 20,445 20,445 286,518 837.77 0.91
Total Revenue 246,945 246,692 256,342 265,125 263,175 257,083 260,764 269,202 273,411 262,104 263,462 263,462 3,127,766 9,145.51 9.97

Operating Expenses
Salary Expense 31,314 27,779 25,751 34,224 28,896 30,735 32,813 30,497 25,074 24,299 24,299 37,759 353,440 1,033.45 1.13
Operating Expense 4,125 1,829 4,155 2,418 3,488 1,785 4,044 1,759 2,987 3,030 3,030 3,030 35,680 104.33 0.11
Advertising Expense 10,172 7,867 8,790 12,875 9,217 4,566 9,311 9,128 5,468 6,385 5,860 6,885 96,524 282.23 0.31
Make Ready Expense 2,824 1,468 6,877 3,034 6,347 6,868 4,319 6,576 2,661 7,900 7,500 7,500 63,875 186.77 0.20
Maintenance Expense 484 2,348 2,996 938 1,390 2,786 4,753 1,299 933 13,595 2,295 2,295 36,112 105.59 0.12
Service Expense 2,095 (1,911) 750 1,089 7,856 6,550 3,601 3,942 6,370 4,640 4,640 2,395 42,018 122.86 0.13
Administrative Expense 15,018 14,773 20,876 15,092 17,309 15,941 18,145 18,942 16,905 15,084 15,469 14,969 198,525 580.48 0.63
Utility Expense 17,811 10,978 5,261 9,118 8,907 9,673 13,946 10,892 14,755 16,590 10,900 10,900 139,730 408.57 0.45
Management Expense 1,732 605 (2,311) 0 (26) 0 0 0 0 0 0 0 0 0.00 0.00
Taxes & Insurance 34,178 39,883 33,892 33,962 41,050 36,561 34,740 35,107 33,746 37,237 37,237 37,237 434,826 1,271.42 1.39

Total Operating Exp. 119,755 105,619 107,036 112,750 124,435 115,464 125,672 118,141 108,899 128,760 111,230 122,970 1,400,730 4,095.70 4.46
Net Operating Income 127,190 141,073 149,305 152,375 138,740 141,618 135,092 151,061 164,512 133,345 152,233 140,493 1,727,036 5,049.81 5.50

Rent Expense 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,254 193,254 193,254 2,319,042 6,780.82 7.39
Partnership Expense 1,511 40 324 595 169 0 0 0 1,128 0 0 0 3,767 11.01 0.01
Capital Expense 3,871 (782) 8,204 6,055 3,698 14,150 7,730 3,637 2,383 6,600 3,300 3,300 62,145 181.71 0.20

Cash Flow Frm Operations (71,445) (51,438) (52,476) (47,528) (58,381) (65,785) (65,891) (45,830) (32,251) (66,510) (44,322) (56,062) (657,918) (1,923.74) (2.10)

Rent Guarantee 66,280 58,055 58,308 42,302 0 0 0 55,178 45,798 41,589 52,896 54,539 474,945

Balance Sheet Adjustments

Cash - Non Operating Accounts 792 (2,230) (4,698) 2,407 6,708 2,152 4,182 3,545 (771) 0 0 0 12,089
Accounts Receivable 9,672 (940) (590) 4,549 (4,100) (8,512) 14,748 (1,503) 626 0 0 0 13,950
Prepaid Assets 372 (275) 86 156 1,384 280 7,106 15,908 6,446 (23,201) 0 0 8,262
Escrow Deposits (34,325) (34,325) (34,325) (34,325) 324,584 (30,394) (30,394) (30,394) (30,394) (2,951) (2,951) (2,951) 56,856

Cash Increase (Decreae) From Assets (23,489) (37,770) (39,527) (27,213) 328,577 (36,473) (4,358) (12,444) (24,092) (26,152) (2,951) (2,951) 91,156

Accounts Payable (5,209) 4,548 22,679 5,948 (1,420) 65,950 8,685 30,415 (53,751) (34,000) 0 0 43,844
Accrued Expenses 34,702 17,279 26,292 32,763 (282,521) 115,337 25,645 23,477 32,478 0 0 0 25,451
Other Payables 1,398 6,448 1,789 (2,315) (5,212) (3,153) (2,593) (5,234) (2,080) 0 0 0 (10,951)
Notess Payable 0 (763) (382) (382) (382) (701) (382) 0 (391) 0 0 0 (3,382)

Cash Increase (Decreae) From Liab. 30,890 27,511 50,377 36,014 (289,534) 177,433 31,355 48,658 (23,744) (34,000) 0 0 54,962

NET CASH FLOW 2,236 (3,642) 16,682 3,574 (19,338) 75,176 (38,893) 45,563 (34,289) (85,073) 5,624 (4,473) (36,855)
CUMM. NET CASH FLOW 29,014 25,372 42,054 45,628 26,290 101,466 62,573 108,136 73,846 (11,227) (5,603) (10,077)

$700,000

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$-

$(100,000)

$(200,000)

$(300,000)
Jan 2006 Feb 2006 Mar 2006 Apr 2006 May 2006 Jun 2006 Jul 2006 Aug 2006 Sep 2006 Oct 2006 Nov 2006 Dec 2006

NET CASH FLOW CUMM. NET CASH FLOW

Units
Sq. Ft.
### 384807

bayclub2 160 146,080

castlep 356 384,807
cedar 300 274,080
congress 257 254,074
jackson 247 221,730
lee 10 22,160
rem 428 398,868
ric 5 24,952
parkside 300 305,832
polo 440 403,761
sat 440 548,750
sweet 240 264,892
trailapt 280 286,056
vlgcrest 120 108,276
walnut 284 254,103
westo 12 48,309
wind 346 433,196
usacourt 280 299,111
usawalcr 284 254,103
K30: administrator:
assume insurance increases by 50%

L30: administrator:
assume insurance increases by 50%

M30: administrator:
assume insurance increases by 50%

K46: administrator:
insurance downpayment

K47: administrator:
replacement reserve + reduction in tax escrow due to overage

L47: administrator:
replacement reserve + reduction in tax escrow due to overage

M47: administrator:
replacement reserve + reduction in tax escrow due to overage
 USA Courtney Downs LeaseCo, LLC
Budget Comparison
Books = Accrual
For the period ending October 31, 2006

MTD MTD YTD YTD Annual

Account Actual Budget $ Variance MTD Variance Comment Actual Budget $ Variance Budget YTD Variance Comment
Revenue
Market Rent 355,720.00 364,160.00 (8,440.00) 3,557,200.00 3,574,214.00 (17,014.00) 4,302,534.00
Loss / Gain to Lease 840.00 0.00 840.00 1,400.00 0.00 1,400.00 0.00
Gross Potential Rent 356,560.00 364,160.00 (7,600.00) 3,558,600.00 3,574,214.00 (15,614.00) 4,302,534.00
Prepaid Homeowners Dues 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Residential Rent 1,140.00 0.00 1,140.00 Income due to guest 1,122.00 0.00 1,122.00 0.00
suite rental.
Vacancy Loss (27,385.72) (36,416.00) 9,030.28 Positive variance due to (299,429.44) (310,274.00) 10,844.56 (390,390.00)
actual occupancy of
93% versus 91%
budgeted.
Upfront Rent Concessions (305.11) (2,000.00) 1,694.89 Positive variance due to (106,321.69) (20,000.00) (86,321.69) (24,000.00)
cutting back on upfront
concessions.
Corporate Discount 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Delinquent Rent 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Adjustments & W/O (1,449.00) (500.00) (949.00) Additional write off due (19,909.10) (5,000.00) (14,909.10) (6,000.00)
to 1-skip.
Model Units (1,980.00) (1,980.00) 0.00 (19,800.00) (19,800.00) 0.00 (23,760.00)
Courtesy Officer Apt. 0.00 (575.00) 575.00 Savings due to (1,725.00) (5,750.00) 4,025.00 (6,900.00)
termination of position.
Employee Apartment (1,780.80) (1,900.00) 119.20 (17,808.00) (19,000.00) 1,192.00 (22,800.00)
Housekeeping & Maintenance Fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Guest Suite (1,160.00) (1,130.00) (30.00) (1,870.00) (11,300.00) 9,430.00 (13,560.00)
Lease Term Concessions (79,793.51) (84,256.00) 4,462.49 Savings due to reducing (735,457.68) (852,070.00) 116,612.32 (1,019,064.00)
the prorated
concessions on select
unit types.
Homeowner's Assn Dues Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Homeowner Dues Paid 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Model Units 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Lease Contract Difference 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Rental Income $243,845.86 $235,403.00 $8,442.86 $2,357,401.09 $2,331,020.00 $26,381.09 $2,796,060.00

Laundry Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Vending Income 182.03 68.00 114.03 403.23 680.00 (276.77) 816.00
Covered Parking Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Late Charges & NSF Fees 2,489.25 2,300.00 189.25 18,663.70 23,000.00 (4,336.30) 27,600.00
Month to Month Premium 455.00 300.00 155.00 1,967.23 3,000.00 (1,032.77) 3,600.00
Storage Fees 748.87 1,300.00 (551.13) Due to move-outs who 8,643.45 13,000.00 (4,356.55) 15,600.00
gave up storage units
not yet re-rented.
Repair & Maintenance Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Application Fees 850.00 1,000.00 (150.00) 11,620.00 10,000.00 1,620.00 12,000.00
Termination Fees & Damages 5,760.23 1,033.00 4,727.23 Collected more lease 24,555.76 10,330.00 14,225.76 12,396.00
break fees due to new
home purchases.
Miscellaneous Income 275.00 500.00 (225.00) 10,714.37 5,000.00 5,714.37 6,000.00
Renters Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Pet Rents & Fees 2,110.00 900.00 1,210.00 All new move in's with 24,202.07 9,000.00 15,202.07 10,800.00
pets are required to pay
a non refundable pet fee
as well as pet rent.

Tower Rent 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Asset Management Fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Parking Spaces Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Homeowners Assessments 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Garage Income 6,815.29 8,700.00 (1,884.71) Fewer rentals due to 65,677.67 87,000.00 (21,322.33) 104,400.00
higher turnover than
expected and lower
rates given as move in
incentives.
Water/Sewer Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cable/Telephone Income 1,183.00 1,000.00 183.00 10,430.80 10,000.00 430.80 12,000.00
HOA Contributions Developer 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Developer HOA Dues 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Forfeited Deposits 435.50 190.00 245.50 1,240.98 1,900.00 (659.02) 2,280.00
Developer Contributions 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest Income Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Thunder Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Administration Fee 2,550.00 2,000.00 550.00 Budget for 13 and actual 31,665.00 20,000.00 11,665.00 24,000.00
move in's 17.
Move-Out Charges 3,191.21 929.00 2,262.21 Positive variance with 39,842.41 9,290.00 30,552.41 11,148.00
lease break charges and
damages on soda
charges.
Short Term Lease Fees 122.58 225.00 (102.42) 2,724.12 2,250.00 474.12 2,700.00
Extra-Ordinary Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporate Rent 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporate Units - expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Deferred Revenue 0.00 0.00 0.00 0.00 0.00 0.00 0.00
HOA Developer Contributions 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Acquisition Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - Rental 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - C.A.M. 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - Taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - Condo Sales 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Other Income 27,167.96 20,445.00 6,722.96 252,350.79 204,450.00 47,900.79 245,340.00

Total Revenue $271,013.82 $255,848.00 $15,165.82 $2,609,751.88 $2,535,470.00 $74,281.88 $3,041,400.00

Expense
 Managers Salary 9,531.61 9,545.00 13.39 87,447.28 100,221.00 12,773.72 124,082.00
Salaries 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Maintenance Salary 9,403.06 6,660.00 (2,743.06) Additional porter position 101,777.03 69,931.00 (31,846.03) 86,582.00
not budgeted. This is
offset in make ready
expense.
Salary - Administrative 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Commissions & Bonus 5,356.60 3,500.00 (1,856.60) Bonuses were paid on 35,256.10 31,500.00 (3,756.10) 42,000.00
22 move in's for the
month of September.
Payroll Taxes 1,923.96 1,576.00 (347.96) 17,958.89 16,129.00 (1,829.89) 20,210.00
Group Insurance 1,463.00 1,442.00 (21.00) 14,858.00 14,420.00 (438.00) 17,304.00
Disability Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
401k Match 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Contract Labor 3,082.00 0.00 (3,082.00) Temporary office help 21,303.72 0.00 (21,303.72) 0.00
needed to assist in the
office due to open
position. This is offset
by vacant leasing
position.
Workers Comp 2,178.43 1,576.00 (602.43) 21,420.44 16,129.00 (5,291.44) 20,210.00
Total Salary Expense 32,938.66 24,299.00 (8,639.66) 300,021.46 248,330.00 (51,691.46) 310,388.00

Office Operations & Supplies 993.45 600.00 (393.45) 9,050.71 6,000.00 (3,050.71) 7,200.00
Telephones 1,199.77 1,080.00 (119.77) 9,351.87 10,800.00 1,448.13 12,960.00
Answering Svc. & Pagers 138.76 100.00 (38.76) 888.33 1,000.00 111.67 1,200.00
Postage & Delivery 200.84 200.00 (0.84) 1,668.77 2,000.00 331.23 2,400.00
Patrol Services 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Membership Dues 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Publications & Subscriptions 0.00 0.00 0.00 534.75 1,645.00 1,110.25 1,645.00
Conventions/Seminars 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Employee Training 0.00 100.00 100.00 918.82 2,000.00 1,081.18 2,200.00
Furniture Rental 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Car Expenses 69.42 200.00 130.58 146.14 2,000.00 1,853.86 2,400.00
Permits & Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Credit Checks 459.50 750.00 290.50 4,270.40 7,500.00 3,229.60 9,000.00
Guest Suite Expense 484.36 0.00 (484.36) 3,306.68 0.00 (3,306.68) 0.00
Parking Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Operating Expense 3,546.10 3,030.00 (516.10) 30,136.47 32,945.00 2,808.53 39,005.00

Advertising & Promotions 5,974.37 3,452.00 (2,522.37) Due to For Rent Ad not 46,993.11 35,505.00 (11,488.11) 42,409.00
being budgeted for.
Resident Promotions 493.77 1,000.00 506.23 Spent less on vendor 6,398.48 8,325.00 1,926.52 10,300.00
night and residents
party.
Locators 1,220.94 1,033.00 (187.94) 15,691.35 10,330.00 (5,361.35) 12,396.00
Resident Referrals 1,000.00 900.00 (100.00) 17,000.00 9,000.00 (8,000.00) 10,800.00
Total Advertising Expense 8,689.08 6,385.00 (2,304.08) 86,082.94 63,160.00 (22,922.94) 75,905.00

Paint & Drywall (140.37) 2,900.00 3,040.37 Positive variance due to 3,711.14 28,200.00 24,488.86 33,200.00
maintenance staff doing
all paints in house
instead of contracting
outside vendors.
Contract Cleaning Svcs. 2,975.00 2,500.00 (475.00) 22,135.00 27,500.00 5,365.00 32,500.00
Carpet Cleaning & Repairs 2,635.00 1,200.00 (1,435.00) More carpets were 16,922.13 13,500.00 (3,422.13) 15,900.00
cleaned to save on cost
of replacing of carpet.
Window Coverings 229.85 200.00 (29.85) 1,615.23 2,000.00 384.77 2,400.00
Vinyl & Tile Repairs 0.00 500.00 500.00 No need to replace any 0.00 5,000.00 5,000.00 6,000.00
at this time.
Lock & Keys 55.47 100.00 44.53 433.46 1,000.00 566.54 1,200.00
Counter & Tub Resurfacing 0.00 100.00 100.00 941.46 1,000.00 58.54 1,200.00
Other Redecorating 0.00 100.00 100.00 218.86 1,000.00 781.14 1,200.00
Cleaning Supplies 0.00 300.00 300.00 752.88 3,000.00 2,247.12 3,600.00
Total Make Ready Expense 5,754.95 7,900.00 2,145.05 46,730.16 82,200.00 35,469.84 97,200.00

General Maintenance & Supplies 788.38 750.00 (38.38) 6,329.06 7,700.00 1,370.94 9,200.00
HVAC Parts & Repairs 321.44 150.00 (171.44) 883.94 1,500.00 616.06 1,800.00
Plumbing Parts & Repairs 3,667.32 3,375.00 (292.32) 4,876.12 4,050.00 (826.12) 4,200.00
Electric Parts & Repairs 0.00 150.00 150.00 1,155.89 1,500.00 344.11 1,800.00
Roof & Gutter Repairs 0.00 100.00 100.00 0.00 1,000.00 1,000.00 1,200.00
Pools & Fountains 593.67 400.00 (193.67) 4,355.48 5,000.00 644.52 5,800.00
Gates & Entrances 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Glass & Screens 0.00 50.00 50.00 1,418.51 500.00 (918.51) 600.00
Appliance Parts & Repairs 0.00 75.00 75.00 1,539.20 750.00 (789.20) 900.00
Hardware 0.00 150.00 150.00 548.35 1,500.00 951.65 1,800.00
Exterior Painting 0.00 100.00 100.00 90.11 1,000.00 909.89 1,200.00
Uniforms 296.78 0.00 (296.78) 844.63 2,100.00 1,255.37 2,100.00
Elevator Service & Repairs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Security & Fire Systems 8,936.03 8,295.00 (641.03) Annual Fire alarm and 10,489.21 10,950.00 460.79 11,540.00
backflow testing done.
Uninsured Losses 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Locks & Keys 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Bulbs & Ballasts 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Maintenance Expense 14,603.62 13,595.00 (1,008.62) 32,530.50 37,550.00 5,019.50 42,140.00

Landscape & Grounds 2,016.57 2,745.00 728.43 Savings due to in house 27,616.48 29,460.00 1,843.52 32,205.00
winter fertilization in
smaller areas.
Trash Removal 521.43 775.00 253.57 5,100.84 8,500.00 3,399.16 10,050.00
Pest Control 0.00 75.00 75.00 685.56 750.00 64.44 900.00
Security Patrols 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Window Cleaning Svc. 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interior Cleaning Svc. 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cable Television 0.00 45.00 45.00 0.00 450.00 450.00 540.00
Snow Removal 1,000.00 1,000.00 0.00 477.87 5,500.00 5,022.13 8,000.00
Total Service Expense 3,538.00 4,640.00 1,102.00 33,880.75 44,660.00 10,779.25 51,695.00

Expenses - CAM - Electric 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Water/Sewer 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Gas 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Grounds 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Trash Removal 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Cleaning Svcs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
 Expenses - CAM - Maintenance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - R/E Taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total CAM Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Management Fees 11,322.38 10,234.00 (1,088.38) Based on gross 107,791.05 101,420.00 (6,371.05) 121,658.00
collections.
Asset Management Fees 1,000.00 1,000.00 0.00 10,000.00 10,000.00 0.00 12,000.00
Investor Administration Fee 3,250.00 3,250.00 0.00 32,500.00 32,500.00 0.00 39,000.00
Legal Fees 1,298.90 550.00 (748.90) 9 evictions but budgeted 12,966.60 5,500.00 (7,466.60) 6,600.00
for 4.
Accounting Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Postage & Delivery 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Bank Charges 0.00 0.00 0.00 (104.00) 0.00 104.00 0.00
Partnership Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other Administrative Expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Travel Expense 0.00 0.00 0.00 825.49 500.00 (325.49) 1,000.00
Employee Activities 637.15 50.00 (587.15) 2,596.02 2,500.00 (96.02) 2,600.00
Printing 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Computer Consulting 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Computer Expense 0.00 0.00 0.00 3,936.30 1,400.00 (2,536.30) 1,400.00
Bank Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Development Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Admin. Expense 17,508.43 15,084.00 (2,424.43) 170,511.46 153,820.00 (16,691.46) 184,258.00

Electricity 2,768.98 2,800.00 31.02 32,811.52 28,000.00 (4,811.52) 33,600.00

Electricity Gas - Resident 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Natural Gas 4,678.89 2,700.00 (1,978.89) Winter weather has 27,120.00 27,120.00 0.00 35,120.00
incurred more gas to
heat the pool.
Water & Sewer 10,140.79 8,500.00 (1,640.79) Based on billing from 90,825.82 91,000.00 174.18 106,000.00
Arapahoe County.
Water & Sewer - Resident Reimb (7,875.61) (4,000.00) 3,875.61 Based on billing from (50,305.29) (42,500.00) 7,805.29 (50,500.00)
Arapahoe County.
Water - irrigation 4,778.55 6,290.00 1,511.45 Based on billing from 20,047.79 40,840.00 20,792.21 40,840.00
Arapahoe County.
Electric - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Trash Reimbursement (2,433.96) (2,200.00) 233.96 (20,537.56) (22,000.00) (1,462.44) (26,400.00)
Water - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Utility -Vacant Electric 644.63 1,700.00 1,055.37 All A/C's have been 8,960.62 17,000.00 8,039.38 20,400.00
turned off in vacant units
due to colder weather.

Utility - Vacant Gas 396.55 800.00 403.45 5,516.15 7,620.00 2,103.85 9,820.00
Tenant Reimbursement - Gas 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Utility Expense 13,098.82 16,590.00 3,491.18 114,439.05 147,080.00 32,640.95 168,880.00

Management Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Management Fees-MRLL 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Property Legal Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Credit Card Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Bank Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Bank Adjustments 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other Professional Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Late Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00
HOA Assessment Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Contributions 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Fiduciary Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Custodial Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Thunder Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Accounting Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Management Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Property Taxes 27,619.00 27,200.00 (419.00) 287,359.26 272,000.00 (15,359.26) 326,400.00

Franchise Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Insurance 8,614.20 6,691.00 (1,923.20) Based on actual 71,609.71 66,910.00 (4,699.71) 80,292.00
expense.
Tax Consultants 0.00 0.00 0.00 700.00 0.00 (700.00) 0.00
MIP 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Taxes & Insurance 36,233.20 33,891.00 (2,342.20) 359,668.97 338,910.00 (20,758.97) 406,692.00
Total Operating Expenses 135,910.86 125,414.00 (10,496.86) 1,174,001.76 1,148,655.00 (25,346.76) 1,376,163.00
NET OPERATING INCOME 135,102.96 130,434.00 4,668.96 1,435,750.12 1,386,815.00 48,935.12 1,665,237.00

Base Rent 106,586.67 106,587.00 0.33 1,065,866.70 1,065,870.00 3.30 1,279,044.00

Stated Rent 86,666.67 86,667.00 0.33 866,666.70 866,670.00 3.30 1,040,004.00
Office Rent 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Rent Expense 193,253.34 193,254.00 0.66 1,932,533.40 1,932,540.00 6.60 2,319,048.00

Mortgage Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Loan Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Debt Service 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Partnership Legal Fees 0.00 0.00 0.00 1,510.50 0.00 (1,510.50) 0.00
Partnership Accounting Fees 62.00 0.00 (62.00) 1,576.30 0.00 (1,576.30) 0.00
Partnership Travel 0.00 0.00 0.00 655.29 0.00 (655.29) 0.00
Partnership - Meals 0.00 0.00 0.00 86.91 0.00 (86.91) 0.00
Partnership Fees - Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Partnership Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Due Diligence Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Dead Deal Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Partnership Exp- Leaseup Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Partnership Expense 62.00 0.00 (62.00) 3,829.00 0.00 (3,829.00) 0.00

Exterior Rehab 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Interior Rehab 0.00 0.00 0.00 0.00 3,000.00 3,000.00 3,000.00
HVAC Replacement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Carpet & Floor Replacement 5,646.07 6,600.00 953.93 Budgeted for 6 49,695.85 57,200.00 7,504.15 63,800.00
replacements and only
replaced 5.
Refrigerators 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Dishwashers & Ranges 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Washers / Dryers 0.00 0.00 0.00 236.72 0.00 (236.72) 0.00
Fire Alarm Replacement 0.00 0.00 0.00 4,658.23 0.00 (4,658.23) 0.00
 Other Capital Improvements 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Boiler Replacement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Roof Replacement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Capital Expenses 5,646.07 6,600.00 953.93 54,590.80 60,200.00 5,609.20 66,800.00

Casualty Losses 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Casualty Recovery 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Casualty Loss 0.00 0.00 0.00 0.00 0.00 0.00 0.00
NET INCOME (LOSS) (63,858.45) (69,420.00) 5,561.55 (555,203.08) (605,925.00) 50,721.92 (720,611.00)

Rental Guarantee 42,771.61 0.00 42,771.61 368,692.52 124,335.14 244,357.38 124,335.14

(21,086.84) (69,420.00) 48,333.16 (186,510.56) (481,589.86) 295,079.30 (596,275.86)
 Courtney Downs Apartments
Oct-06
LEASING & OCCUPANCY

NUMBER OF MOVE INS: 18 INCOME THIS MONTH: $271,013.00

NUMBER OF MOVE OUTS: 25 INCOME LAST MONTH: $273,411.00
NET FOR THE MONTH: -7 DIFFERENCE: ($2,398)

TOTAL # GARAGES 120

# GARAGES OCCUPIED 117
OCCUPIED/LEASED %: 93%/90% GARAGES OCCUPIED % 98%

SOURCE OF TRAFFIC: REASONS WHY PROSPECTS DID NOT LEASE:

Traffic Leased
APTGUIDE.COM 0 0 * Job Transfer 4
APARTMENT GUIDE 6 2 * Too expensive. 15
YELLOW PAGES 0 0 * Future/No Availability/Waiting list 0
OTHER. NET 0 0 * Just started looking. 8
FOR RENT 4 0 * Waiting for Home to Sell 0
RENT.NET 0 0 * Current Lease to Expire 0
LIVES IN AREA 31 11 * Needs Ground Floor 4
RESIDENT REFERRAL 15 0 * Moved Elsewhere 0
LOCATORS 6 0 * Will return with roommate or spouse 18
RENT.COM 0 0 * Realtor Looking for Client 0
WALK-IN 0 0 * Undecided 0
SIGNAGE 18 4 * Employment pending 8
WORD OF MOUTH 0 0 * House sale pending 6
* Rented at Competitor 0
TOTALS 80 17 TOTALS 63

CLOSING RATIO: 21%

MARKETING ACTIVITIES & SOURCES FOR THE MONTH

* Dropped off muffins and brochures to First Data Corp.

* Dropped off brochures to 24 Hour Fitness Athletic Club.
* Dropped off doughnuts and brochures to Richmond Homes.
* Took locators lunch and new prices for the month.
* Updated all internet ads with new pricing.
* Brochures where taken to Human Resources at King Soopers.
* Met with KB sales team with options of temporary housing for new home buyers.

OVERVIEW OF COMPARABLE PROPERTIES:

The surrounding comps are still offering rents averaging one to three months off on a 12 month lease on any unit type.
This translates into one bedrooms starting at $525, two bedrooms at $715 and three bedrooms starting at $1145.
Look and leases are being locked in with no security deposit and one month free.

RESIDENT RETENTION:
We had 15 renewals for leases expiring in October. These renewals averaged a $53.50 per lease increase.

INCIDENTS ON THE PROPERTY:

Hot Tub is down and waiting new heater.
MAINTENANCE: ROUTINE REPLACEMENTS:
Number
Number of: Replaced Apt. #
MARKET READY UNITS 15 REFRIGERATORS 0
COMPLETE PAINTS 7 DISHWASHERS 0
TOUCH UPS 8 STOVES 0
WORK ORDERS 175 A/C COMPRESSORS 0
Pending Completed 0 CONDENSING UNITS 0
Misc 0 35 35 WATER HEATERS 0
Electrical 0 18 18 ICE MAKERS 0
Punch 0 15 15 GARBAGE DISPOSALS 0
HVAC 0 22 22 MICROWAVES 0
12104, 9206, 6210, 10210, 2203,
Plumbing 0 65 65 CARPETS 6 6306.
Property Ext. 0 0 8 CEILING FANS 0
Appliances 0 20 20 TOILETS 0
Safety 0 0 0 A/C FAN MOTORS 0
Total 0 175 183 COUNTER TOPS 0
ROOF LEAKS 0 CABINETS RESURFACED KITCHEN 0
10210- 1, 9101-1, 2203- 2, 19102-
1, 12104- 1, 6210-2 ,2206-2, 7305-
PLUMBING LEAKS 0 BLINDS 13 1, 13301-2.
TUBS RESURFACED 0
TUB TILES 0

CAPITAL IMPROVEMENTS IN PROGRESS:

N/A in progress.

PROBLEM AREAS NEEDING ATTENTION:

Hot tub in need of a new heater and resurfacing.

CURRENT STAFF:

Manager Nancy Howland

Assistant Manager Wendy Gillan
Leasing Consultant Carrie McMillan
Leasing Consultant Jessica Branch
Maintenance Supervisor Gabriel Tellez
Assistant Maintenance Russell Briley
Maintenance/ Grounds Jorge Chavez and Jorge Bernal

ACCOMPLISHMENTS FOR THE MONTH:

Tomb stones at all entrances were painted.
New flutter flags were installed.
Building 6 roof repaired.
Winterized sprinkler system.
Courtney Downs
RENTAL SCHEDULE
October 2006

EFFECTIVE EFFECTIVE EFFECTIVE Vacants Notice Net

UNIT TYPE #UNITS SIZE TOTAL MKT RENT MKT RENT MONTHLY ANNUAL CONCESSION CONCESSION PER S/F MONTHLY Vacants Leased Notice Leased Available
S/F PER UNIT PER S/F GROSS GROSS RENTS* PER UNIT GROSS
A1 1BR 40 704 28,160 690.00 0.98 $27,600 $331,200 690.00 0.00 0.98 $27,600 9 1 8 3 0
A1V 1BR 32 704 22,528 690.00 1.22 $27,520 $330,240 690.00 55.00 1.10 $31,000 2 0 1 0 2
A2 1BR 18 910 16,380 690.00 1.03 $12,420 $149,040 690.00 0.00 0.76 $12,420 1 0 1 1 5
B1 2BR 24 808 19,392 830.00 1.11 $19,920 $239,040 830.00 0.00 1.03 $19,920 9 0 4 1 12
B1V 2BR 32 808 25,856 830.00 1.14 $26,560 $318,720 830.00 0.00 1.03 $26,560 0 0 0 0 0
C 2BR 42 977 41,034 830.00 1.16 $34,860 $418,320 830.00 0.00 0.85 $34,860 11 1 5 0 13
C1 2BR 44 1,030 45,320 830.00 1.12 $36,520 $438,240 830.00 0.00 0.81 $36,520 4 0 2 1 7
C1V 2BR 22 1,030 22,660 830.00 1.15 $18,260 $219,120 830.00 0.00 0.81 $18,260 0 0 0 0 0
CV 2BR 24 977 23,448 830.00 1.18 $19,920 $239,040 830.00 0.00 0.85 $19,920 0 0 0 0 0
D 2BR 16 1,030 16,480 830.00 0.81 $13,280 $159,360 830.00 0.00 0.81 $13,280 0 0 0 0 5
DV 2BR 20 1,030 20,600 830.00 0.81 $16,600 $199,200 830.00 0.00 0.81 $16,600 0 0 0 0 0
E 3BR 24 1,140 27,360 1,145.00 1.00 $27,480 $329,760 1,145.00 0.00 1.00 $27,480 3 1 1 1 3
EV 3BR 4 1,140 4,560 1,145.00 1.00 $4,580 $54,960 1,145.00 0.00 1.00 $4,580 0 0 0 0 0

TOTAL 342 917 313,778 $835 $0.91 $285,520 $3,426,240 $845 $4 0.92 $289,000 39 3 22 7 47
* Net of Concessions
 MARKET SURVEY
Courtney Downs
October-06

Apartment Name Courtney Downs Coyote Ranch Windsor @ Meridian Pinnacle @ the Creek Dove Valley Cherrywood Village Reserve @ South Creek
Address 15849 E. Jamison Dr16363 E Freemont Ave 9875 Jefferson Pkwy 6107 S Parker Rd 7550 S Blackhawk 16950 E Carlson Dr 15611 E Jamison Dr
Phone 720-870-6114 303-693-8787 303-256-7700 303-766-2500 303-362-2000 303-805-7220 303-680-6696
Location Englewood, Co Aurora, Co Englewood, Co 80112 Centennial, Co Englewood, Co 80112 Parker, Co 80134 Englewood, Co 80112
# of units 342 507 653 216 312 380 168
Age of Property 3 3 6 3 4 3 4
Application Fee $50.00 $35.00 $40.00 $35.00 $35.00 $35.00 $40.00
Credit Card yes yes yes yes yes yes yes
Pets Allowed yes yes yes yes yes yes yes
Pet Deposit 300 n/r 400-500 150-300 200-300 300-500 400 300-600
Sec. Deposit 150 275-325 300 100 199 99 225-375
W/D included Yes yes Only In Select Units Only Select Units no no no
Covered Parking no yes yes yes yes yes yes
Garage Detached yes yes yes yes yes yes
Cable Yes yes yes yes yes yes yes
Tennis Courts no no no no yes yes yes
# of pools 1 1 1 1 1 2 1
Weight Room yes yes yes yes yes yes yes
Jacuzzi yes 1 1 1 1 2 1
Ceiling Fans yes yes yes yes yes yes yes
Microwaves yes yes yes yes yes yes yes
Mini Blinds yes yes yes yes yes yes yes
FF Freezer yes yes yes yes yes yes yes
Icemakers yes yes yes yes yes yes yes
Fireplaces yes no yes yes yes yes yes
Access Gates no yes yes no yes yes yes
Alarm in Unit Prewired no yes yes yes no yes
Door to Door no no no no no no no
Aerobics/Kick Box no no no no no no no
Movie Room no yes yes yes yes yes yes
Computer Library yes yes yes yes yes yes yes
Indoor Basketball no no no no no no no
Water Charge yes no yes yes yes yes yes
 MARKET SURVEY
Courtney Downs
October-06
(Concessions reduced rates)

PROPERTY: Courtney Downs Apt Coyote Ranch Windsor at Meridian Pinnacle @ the Creek Dove Valley Cherrywood Village Reserve@South Creek
PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF
Efficiency
Efficiency
1B1B (A) 690 704 0.98 710 779 0.91 615 627 0.98 620 685 0.91 525 768 0.68 675 707 0.95 625 763 0.82
1B1B (B) 690 808 0.85 710 853 0.83 615 701 0.88 660 705 0.94 525 842 0.62
1B1B w/study 690 910 0.76 615 811 0.91 730 760 0.96
1B
1B
1B w/loft
1B1B w/study 875 956 0.92 799 1051 0.76
2B2B (E) 830 977 0.85 815 1105 0.74 1110 1044 1.06 799 1120 0.71 820 1115 0.74 815 1033 0.79 699 1037 0.67
2B2B (F) 830 1030 0.81 815 1192 0.68 1440 1196 1.20 820 1220 0.67 825 1093 0.75
2B2B (G) 830 1030 0.81 1030 1180 0.87
2B2B (H)
2B2B
2B w/study
2B2B TH
2B2B TH
3B2B 1,145 1140 1.00 999 1398 0.71 1510 1330 1.14 995 1230 0.81 1095 1356 0.81 1210 1235 0.98 1195 1257 0.95
3B2B

% occ /leased 91 92.69 95% 96.3 97.5 96% 0 0% 95 93.3 94% 97.6 98 93% 94.2 96 94% 93.4 95 96%
Avg PSF 1 0.87 0.78 0.99 0.85 0.70 0.87 0.81
Avg Rents 815 1114 994 808 757 1131 995
/ Avail)
Units(Total 342 116 507 12 653 216 13 312 18 360 324 11 168 5

Special: 1x1 690.00, 2x2 Special:$210.00 off per Special:Up to l3 months Special: 3 months pro rated Special: waive application or
Rates 830.00 Special: $350 off per monthSepcial:None month all units. free pro rated. off per month. waive deposits.
reflect these rates: $685 1/1 $805 2/2 $1310 3/2 $626 1/1 $800 2/2 $1275 3/2
specials: special was pulled off the internet
due to property will not give info.
Look and lease $250 off 1st full month

Ren: Info not avail per Ren: $40 increas for 12 Ren: Average $15 to $20 Ren: Free carpet cleaning
Ren: $25 to $50 increase Ren.: Increase $0 to $50. corporate Ren:Per corporate month lease increase. with 12mo.