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 Reforecast Reforecast Reforecast Reforecast Reforecast Reforecast Reforecast Total Unit Sq. Ft.
342 313,778
Revenue
Gross Potential Rent 356,941 356,261 353,425 356,370 356,790 356,985 356,985 356,985 360,554 364,160 364,160 364,160 4,303,776 12,584.14 13.72
- Vacancy (50,457) (41,504) (32,721) (25,521) (27,566) (28,559) (21,419) (28,559) (32,450) (36,416) (40,058) (40,058) (405,288) (1,185.05) (1.29)
- Concessions & Disc. (80,765) (83,296) (83,632) (87,552) (89,252) (80,000) (80,000) (80,000) (80,000) (80,000) (75,000) (75,000) (974,497) (2,849.41) (3.11)
- Other Write-offs & Adj. (5,393) (4,621) (13,129) (3,761) (3,761) (6,085) (6,085) (6,085) (6,085) (6,085) (6,085) (6,085) (73,259) (214.21) (0.23)
Total Rental Income 220,326 226,840 223,943 239,537 236,211 242,341 249,481 242,341 242,019 241,659 243,017 243,017 2,850,732 8,335.47 9.09

Other Income 26,619 19,852 32,398 25,588 26,964 20,445 20,445 20,445 20,445 20,445 20,445 20,445 274,536 802.74 0.87
Total Revenue 246,945 246,692 256,342 265,125 263,175 262,786 269,926 262,786 262,464 262,104 263,462 263,462 3,125,268 9,138.21 9.96

Operating Expenses
Salary Expense 31,314 27,779 25,751 34,224 28,896 37,759 24,299 20,239 24,299 24,299 24,299 37,759 340,917 996.83 1.09
Operating Expense 4,125 1,829 4,155 2,418 3,488 3,030 3,375 4,330 3,030 3,030 3,030 3,030 38,871 113.66 0.12
Advertising Expense 10,172 7,867 8,790 12,875 9,217 5,860 7,885 5,860 5,860 6,385 5,860 6,885 93,516 273.44 0.30
Make Ready Expense 2,824 1,468 6,877 3,034 6,347 8,800 8,800 8,700 8,200 7,900 7,500 7,500 77,951 227.93 0.25
Maintenance Expense 484 2,348 2,996 938 1,390 2,345 4,645 2,345 2,295 13,595 2,295 2,295 37,971 111.03 0.12
Service Expense 2,095 (1,911) 750 1,089 7,856 3,640 3,640 3,640 6,640 4,640 4,640 2,395 39,114 114.37 0.12
Administrative Expense 15,018 14,773 20,876 15,092 17,309 15,049 16,670 17,049 15,067 15,084 15,469 14,969 192,426 562.65 0.61
Utility Expense 17,811 10,978 5,261 9,118 8,907 16,295 16,295 16,295 16,655 16,590 10,900 10,900 156,005 456.15 0.50
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 33,891 33,891 33,891 33,891 37,237 37,237 37,237 430,237 1,258.00 1.37

Total Operating Exp. 119,755 105,619 107,036 112,750 124,435 126,669 119,500 112,349 115,937 128,760 111,230 122,970 1,407,009 4,114.06 4.48
Net Operating Income 127,190 141,073 149,305 152,375 138,740 136,117 150,426 150,437 146,527 133,345 152,233 140,493 1,718,259 5,024.15 5.48

Rent Expense 193,253 193,253 193,253 193,253 193,253 193,254 193,254 193,254 193,254 193,254 193,254 193,254 2,319,045 6,780.83 7.39
Partnership Expense 1,511 40 324 595 169 0 0 0 0 0 0 0 2,639 7.72 0.01
Capital Expense 3,871 (782) 8,204 6,055 3,698 6,600 6,600 6,600 6,600 6,600 3,300 3,300 60,646 177.33 0.19

Cash Flow Frm Operations (71,445) (51,438) (52,476) (47,528) (58,381) (63,737) (49,428) (49,417) (53,327) (66,510) (44,322) (56,062) (664,071) (1,941.73) (2.12)

Rent Guarantee 66,280 58,055 58,308 42,302 0 0 0 45,074 52,214 52,536 52,896 47,280 474,945

Balance Sheet Adjustments

Cash - Non Operating Accounts 792 (2,230) (4,698) 2,407 6,708 0 0 0 0 0 0 0 2,980
Accounts Receivable 9,672 (940) (590) 4,549 (4,100) 0 0 0 0 0 0 0 8,591
Prepaid Assets 372 (275) 86 156 1,384 0 0 0 0 (30,110) 0 0 (28,386)
Escrow Deposits (34,325) (34,325) (34,325) (34,325) 324,584 (2,951) (2,951) (2,951) 20,547 (2,951) (2,951) (2,951) 190,125

Cash Increase (Decreae) From Assets (23,489) (37,770) (39,527) (27,213) 328,577 (2,951) (2,951) (2,951) 20,547 (33,061) (2,951) (2,951) 173,309

Accounts Payable (5,209) 4,548 22,679 5,948 (1,420) 0 0 0 0 0 0 0 26,546

Accrued Expenses 34,702 17,279 26,292 32,763 (282,521) 0 0 0 0 0 0 0 (171,486)
Other Payables 1,398 6,448 1,789 (2,315) (5,212) 0 0 0 0 0 0 0 2,108
Notess Payable 0 (763) (382) (382) (382) 0 0 0 0 0 0 0 (1,909)

Cash Increase (Decreae) From Liab. 30,890 27,511 50,377 36,014 (289,534) 0 0 0 0 0 0 0 (144,741)

NET CASH FLOW 2,236 (3,642) 16,682 3,574 (19,338) (66,688) (52,379) (7,294) 19,434 (47,034) 5,624 (11,733) (160,558)
CUMM. NET CASH FLOW 29,014 25,372 42,054 45,628 26,290 (40,398) (92,777) (100,071) (80,636) (127,670) (122,047) (133,779)

$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

G47: administrator:
replacement reserve + reduction in tax escrow due to overage

H47: administrator:
replacement reserve + reduction in tax escrow due to overage

I47: administrator:
replacement reserve + reduction in tax escrow due to overage

J47: administrator:
replacement reserve

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 May 31, 2006

MTD MTD YTD YTD Annual

Account Actual Budget $ Variance MTD Variance Comment Actual Budget $ Variance Budget YTD Variance Comment
Revenue
Market Rent 355,720.00 356,985.00 (1,265.00) 1,778,600.00 1,778,545.00 55.00 4,302,534.00
Loss / Gain to Lease 1,070.00 0.00 1,070.00 1,205.00 0.00 1,205.00 0.00
Gross Potential Rent 356,790.00 356,985.00 (195.00) 1,779,805.00 1,778,545.00 1,260.00 4,302,534.00
Prepaid Homeowners Dues 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Residential Rent 0.00 0.00 0.00 (18.00) 0.00 (18.00) 0.00
Vacancy Loss (27,565.66) (28,559.00) 993.34 (177,768.79) (162,871.00) (14,897.79) (390,390.00)
Upfront Rent Concessions (6,494.32) (2,000.00) (4,494.32) Slight increase in upfront (98,485.89) (10,000.00) (88,485.89) (24,000.00) Increased upfront and monthly
concessions for the month to concessions during winter
remain competitive with months to compete with
competitors. Up to one month competitors.
offered depending on the lease
term.
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 0.00 (500.00) 500.00 (10,135.02) (2,500.00) (7,635.02) (6,000.00)
Model Units (1,980.00) (1,980.00) 0.00 (9,900.00) (9,900.00) 0.00 (23,760.00)
Courtesy Officer Apt. 0.00 (575.00) 575.00 (1,725.00) (2,875.00) 1,150.00 (6,900.00)
Employee Apartment (1,780.80) (1,900.00) 119.20 (8,904.00) (9,500.00) 596.00 (22,800.00)
Housekeeping & Maintenance Fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Guest Suite 0.00 (1,130.00) 1,130.00 No guest suite at this time. 0.00 (5,650.00) 5,650.00 (13,560.00) Guest suite has not been set up
for the year but is scheduled for
this June.
Lease Term Concessions (82,758.04) (85,817.00) 3,058.96 We have been able to reduce the (326,010.90) (423,715.00) 97,704.10 (1,019,064.00) We have been able to reduce the
amount of concessions given to amount of concessions given as
meet the market needs. We are well as renewal amounts, to
able to renew leases with fewer meet the market needs.
concessions.
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 $236,211.18 $234,524.00 $1,687.18 $1,146,857.40 $1,151,534.00 $(4,676.60) $2,796,060.00

Laundry Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Vending Income 0.00 68.00 (68.00) 0.00 340.00 (340.00) 816.00
Covered Parking Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Late Charges & NSF Fees 2,244.80 2,300.00 (55.20) 7,475.45 11,500.00 (4,024.55) 27,600.00 Zero tolerance program has
allowed for aggressive
collections to decrease
delinquency.
Month to Month Premium 219.00 300.00 (81.00) 822.23 1,500.00 (677.77) 3,600.00
Storage Fees 891.76 1,300.00 (408.24) 5,112.04 6,500.00 (1,387.96) 15,600.00
Repair & Maintenance Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Application Fees 1,200.00 1,000.00 200.00 4,895.00 5,000.00 (105.00) 12,000.00
Termination Fees & Damages 2,500.00 1,033.00 1,467.00 Collected more due to higher 13,472.86 5,165.00 8,307.86 12,396.00 Collected more due to higher
number of lease breaks for home number of lease breaks due to
purchases. home purchases.
Miscellaneous Income 249.30 500.00 (250.70) 8,487.54 2,500.00 5,987.54 6,000.00 Pet fines and trash fees have
been enforced throughout the
year.
No Name 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 2,751.80 900.00 1,851.80 Positive variance due to increase 12,022.74 4,500.00 7,522.74 10,800.00 An increase of pet deposits by
in fees. $150.00 per pet have allowed us
to have a positive variance.
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 5,850.09 8,700.00 (2,849.91) Fewer rentals due to higher 33,564.78 43,500.00 (9,935.22) 104,400.00 Due to a higher number of move-
turnover than expected. outs having one or more garages
that are pending rental.
Water/Sewer Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cable/Telephone Income 1,006.00 1,000.00 6.00 5,030.00 5,000.00 30.00 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 0.00 190.00 (190.00) 0.00 950.00 (950.00) 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 4,074.00 2,000.00 2,074.00 We increased the non refundable 17,364.00 10,000.00 7,364.00 24,000.00 We have increased the rate of
admin fee to $150 our administration fee by $100 .
Move-Out Charges 5,603.90 929.00 4,674.90 Aggressive collection of 22,302.00 4,645.00 17,657.00 11,148.00 Aggressive collection of
damages and fees from move- damages and fees from move-
outs. outs.
Short Term Lease Fees 373.16 225.00 148.16 872.15 1,125.00 (252.85) 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 26,963.81 20,445.00 6,518.81 131,420.79 102,225.00 29,195.79 245,340.00

Total Revenue $263,174.99 $254,969.00 $8,205.99 $1,278,278.19 $1,253,759.00 $24,519.19 $3,041,400.00

Expense
Managers Salary 8,641.39 9,545.00 903.61 43,506.69 47,725.00 4,218.31 124,082.00
Salaries 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Maintenance Salary 9,521.17 6,660.00 (2,861.17) We are over in maintenance 50,060.82 33,300.00 (16,760.82) 86,582.00 We are over in maintenance
payroll due additional porter payroll due to having a porter
position that was not budgeted position that was not budgeted
for, this is offset in make ready for, this offset in make ready
expense. expense.
Salary - Administrative 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Commissions & Bonus 3,351.80 3,500.00 148.20 18,087.30 14,000.00 (4,087.30) 42,000.00 Due to timing of payout.
 Payroll Taxes 1,702.57 1,576.00 (126.57) 9,039.03 7,600.00 (1,439.03) 20,210.00
Group Insurance 1,529.50 1,442.00 (87.50) 7,514.50 7,210.00 (304.50) 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 2,462.44 0.00 (2,462.44) Temporary office help needed to 7,197.95 0.00 (7,197.95) 0.00 Temporary office help needed to
assist in the office due to cover schedule.
manager out on maternity leave.
Workers Comp 1,687.33 1,576.00 (111.33) Reflective of number of 12,558.18 7,600.00 (4,958.18) 20,210.00
associates on payroll.
Total Salary Expense 28,896.20 24,299.00 (4,597.20) 147,964.47 117,435.00 (30,529.47) 310,388.00

Office Operations & Supplies 774.35 600.00 (174.35) 5,592.34 3,000.00 (2,592.34) 7,200.00 We are over due to the purchase
of a new copier for the office.

Telephones 876.33 1,080.00 203.67 5,038.28 5,400.00 361.72 12,960.00

Answering Svc. & Pagers 100.00 100.00 0.00 573.57 500.00 (73.57) 1,200.00
Postage & Delivery 129.27 200.00 70.73 1,006.57 1,000.00 (6.57) 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 0.00 142.00 0.00 (142.00) 1,645.00
Conventions/Seminars 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Employee Training 1,100.00 1,100.00 0.00 1,465.75 1,500.00 34.25 2,200.00
Furniture Rental 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Car Expenses 16.20 200.00 183.80 16.20 1,000.00 983.80 2,400.00
Permits & Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Credit Checks 492.00 750.00 258.00 2,181.11 3,750.00 1,568.89 9,000.00
Guest Suite Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Parking Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Operating Expense 3,488.15 4,030.00 541.85 16,015.82 16,150.00 134.18 39,005.00

Advertising & Promotions 5,143.92 4,437.00 (706.92) Variance due to addition of For 25,238.71 18,245.00 (6,993.71) 42,409.00 Extra cost is due to For Rent
Rent magazine ad. Needed to contract.
increase marketing efforts.
Resident Promotions 424.68 475.00 50.32 4,374.83 3,400.00 (974.83) 10,300.00
Locators 3,148.25 1,033.00 (2,115.25) We had 8 locators referrals this 10,307.50 5,165.00 (5,142.50) 12,396.00 Larger number of locator
month and are budgeted for 3. referrals than originally projected.

Resident Referrals 500.00 900.00 400.00 9,000.00 4,500.00 (4,500.00) 10,800.00 Aggressive promoting of referral
fee in the news letter has brought
in more referrals.
Total Advertising Expense 9,216.85 6,845.00 (2,371.85) 48,921.04 31,310.00 (17,611.04) 75,905.00

Paint & Drywall 363.74 3,000.00 2,636.26 Positive variance due to staff 3,014.74 13,500.00 10,485.26 33,200.00 We have a porter who does the
performing paints in house. painting in place of contracting it
out.
Contract Cleaning Svcs. 2,415.00 3,000.00 585.00 9,290.00 13,500.00 4,210.00 32,500.00
Carpet Cleaning & Repairs 3,181.83 1,500.00 (1,681.83) Variance due to more cleans 7,168.83 6,300.00 (868.83) 15,900.00
required. Fewer carpet
replacements needed.
Window Coverings 358.77 200.00 (158.77) 356.77 1,000.00 643.23 2,400.00
Vinyl & Tile Repairs 0.00 500.00 500.00 0.00 2,500.00 2,500.00 6,000.00 Vinyl and tile repairs have been
done in house in an effort to cut
costs.
Lock & Keys 27.98 100.00 72.02 54.31 500.00 445.69 1,200.00
Counter & Tub Resurfacing 0.00 100.00 100.00 185.00 500.00 315.00 1,200.00
Other Redecorating 0.00 100.00 100.00 218.86 500.00 281.14 1,200.00
Cleaning Supplies 0.00 300.00 300.00 262.25 1,500.00 1,237.75 3,600.00 Cleaning company has been
using their own supplies this has
cut down on the cost greatly.
Total Make Ready Expense 6,347.32 8,800.00 2,452.68 20,550.76 39,800.00 19,249.24 97,200.00

General Maintenance & Supplies 421.20 800.00 378.80 2,545.67 3,800.00 1,254.33 9,200.00
HVAC Parts & Repairs 0.00 150.00 150.00 532.98 750.00 217.02 1,800.00
Plumbing Parts & Repairs 0.00 75.00 75.00 573.17 375.00 (198.17) 4,200.00
Electric Parts & Repairs 0.00 150.00 150.00 972.75 750.00 (222.75) 1,800.00
Roof & Gutter Repairs 0.00 100.00 100.00 0.00 500.00 500.00 1,200.00
Pools & Fountains 79.17 400.00 320.83 1,403.84 2,000.00 596.16 5,800.00
Gates & Entrances 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Glass & Screens 240.45 50.00 (190.45) 509.74 250.00 (259.74) 600.00
Appliance Parts & Repairs 0.00 75.00 75.00 793.03 375.00 (418.03) 900.00
Hardware 0.00 150.00 150.00 226.50 750.00 523.50 1,800.00
Exterior Painting 12.71 100.00 87.29 90.11 500.00 409.89 1,200.00
Uniforms 0.00 0.00 0.00 155.56 800.00 644.44 2,100.00
Elevator Service & Repairs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Security & Fire Systems 636.64 295.00 (341.64) Reflects payment of three 352.59 1,475.00 1,122.41 11,540.00
months.
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 1,390.17 2,345.00 954.83 8,155.94 12,325.00 4,169.06 42,140.00

Landscape & Grounds 7,245.00 7,245.00 0.00 7,590.00 12,735.00 5,145.00 32,205.00
Trash Removal 536.02 775.00 238.98 2,436.58 4,625.00 2,188.42 10,050.00 Calls for pick ups only when
necessary, have saved in cost.
Pest Control 75.00 75.00 0.00 375.00 375.00 0.00 900.00
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 0.00 225.00 225.00 540.00
Snow Removal 0.00 0.00 0.00 (522.13) 4,500.00 5,022.13 8,000.00
Total Service Expense 7,856.02 8,140.00 283.98 9,879.45 22,460.00 12,580.55 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 10,769.02 10,199.00 (570.02) 52,510.59 50,151.00 (2,359.59) 121,658.00 Based on contract.
Asset Management Fees 1,000.00 1,000.00 0.00 5,000.00 5,000.00 0.00 12,000.00
Investor Administration Fee 3,250.00 3,250.00 0.00 16,250.00 16,250.00 0.00 39,000.00
Legal Fees 1,950.00 550.00 (1,400.00) Reflects eight evictions filed. 7,971.00 2,750.00 (5,221.00) 6,600.00 Due to high number of evictions
of residents who have been
chronically late on rent.
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 (52.00) 0.00 52.00 (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 0.00 500.00 500.00 825.49 500.00 (325.49) 1,000.00
Employee Activities 172.64 50.00 (122.64) 332.58 250.00 (82.58) 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 219.81 0.00 (219.81) 283.76 0.00 (283.76) 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 17,309.47 15,549.00 (1,760.47) 83,069.42 74,901.00 (8,168.42) 184,258.00

Electricity 3,649.34 2,800.00 (849.34) Includes usage on all bldgs and 17,054.67 14,000.00 (3,054.67) 33,600.00
common area.
Electricity Gas - Resident 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Natural Gas 297.14 2,160.00 1,862.86 We have turned down the heat in 16,435.08 16,860.00 424.92 35,120.00
the pool to off set higher costs.

Water & Sewer 10,381.31 10,000.00 (381.31) 45,144.09 43,000.00 (2,144.09) 106,000.00
Water & Sewer - Resident Reimb (4,899.27) (4,500.00) 399.27 (19,093.85) (21,000.00) (1,906.15) (50,500.00)
Water - irrigation 26.10 6,290.00 6,263.90 Irrigation meters have been off (7,414.01) 9,390.00 16,804.01 40,840.00 Irrigation meters have been off
for the winter so no watering until for the winter so no watering until
the end of May was needed. the end of May was needed.

Electric - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Trash Reimbursement (1,809.77) (2,200.00) (390.23) Reflective of lower occupancy. (9,270.35) (11,000.00) (1,729.65) (26,400.00)
Water - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Utility -Vacant Electric 653.76 1,700.00 1,046.24 We have been collecting un paid 5,096.92 8,500.00 3,403.08 20,400.00 We have been collecting un-paid
electric bills from current electric bills from current
residents. residents.
Utility - Vacant Gas 608.84 800.00 191.16 4,122.14 5,200.00 1,077.86 9,820.00
Tenant Reimbursement - Gas 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Utility Expense 8,907.45 17,050.00 8,142.55 52,074.69 64,950.00 12,875.31 168,880.00

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 (26.00) 0.00 26.00 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 (26.00) 0.00 26.00 0.00 0.00 0.00 0.00

Property Taxes 32,756.31 27,200.00 (5,556.31) Includes payment of the personal 147,408.64 136,000.00 (11,408.64) 326,400.00
property taxes.
Franchise Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Insurance 8,293.51 6,691.00 (1,602.51) Rate higher than anticipated. 35,055.25 33,455.00 (1,600.25) 80,292.00
Includes pollution policy
premium.
Tax Consultants 0.00 0.00 0.00 500.00 0.00 (500.00) 0.00
MIP 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Taxes & Insurance 41,049.82 33,891.00 (7,158.82) 182,963.89 169,455.00 (13,508.89) 406,692.00
Total Operating Expenses 124,435.45 120,949.00 (3,486.45) 569,595.48 548,786.00 (20,809.48) 1,376,163.00
NET OPERATING INCOME 138,739.54 134,020.00 4,719.54 708,682.71 704,973.00 3,709.71 1,665,237.00

Base Rent 106,586.67 106,587.00 0.33 532,933.35 532,935.00 1.65 1,279,044.00

Stated Rent 86,666.67 86,667.00 0.33 433,333.35 433,335.00 1.65 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 0.66 966,266.70 966,270.00 3.30 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 169.30 0.00 (169.30) 764.30 0.00 (764.30) 0.00
Partnership Travel 0.00 0.00 0.00 305.62 0.00 (305.62) 0.00
Partnership - Meals 0.00 0.00 0.00 59.04 0.00 (59.04) 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- Lease up Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Partnership Expense 169.30 0.00 (169.30) 2,639.46 0.00 (2,639.46) 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 3,698.23 6,600.00 2,901.77 Saved on carpet replacement 21,045.75 24,200.00 3,154.25 63,800.00 Saved on carpet replacement
due to having carpets cleaned due to having carpets cleaned
and repaired. and repaired.
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 0.00 0.00 0.00 0.00
Fire Alarm Replacement 0.00 0.00 0.00 0.00 0.00 0.00 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 3,698.23 6,600.00 2,901.77 21,045.75 27,200.00 6,154.25 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) (58,381.33) (65,834.00) 7,452.67 (281,269.20) (288,497.00) 7,227.80 (720,611.00)

Rental Guarantee 0.00 0.00 0.00 224,944.65 0.00 224,944.65 0.00

(58,381.33) (65,834.00) 7,452.67 (56,324.55) (288,497.00) 232,172.45 (720,611.00)
 Courtney Downs Apartments
May-06
LEASING & OCCUPANCY

NUMBER OF MOVE INS: 24 INCOME THIS MONTH: $262,168.99

NUMBER OF MOVE OUTS: 21 INCOME LAST MONTH: $265,048.00
NET FOR THE MONTH: 3 DIFFERENCE: -$2,879.01

TOTAL # GARAGES 120

# GARAGES OCCUPIED 94
OCCUPIED/LEASED %: 92.4% 95.3% GARAGES OCCUPIED % 78%

SOURCE OF TRAFFIC: REASONS WHY PROSPECTS DID NOT LEASE:

Traffic Leased
APTGUIDE.COM 1 1 * Job Transfer 2
APARTMENT GUIDE 7 4 * Restricted Pet Breed 2
YELLOW PAGES 0 0 * Future/No Availability/Waiting list 0
OTHER. NET 12 5 * Just started looking. 3
FOR RENT 3 0 * Waiting for Home to Sell 11
RENT.NET 5 1 * Current Lease to Expire 0
LIVES IN AREA 12 4 * Needs Ground Floor 1
RESIDENT REFERRAL 2 4 * Moved Elsewhere 0
LOCATORS 2 2 * Will return with roommate or spouse 7
RENT.COM 4 0 * Realtor Looking for Client 0
WALK-IN 0 0 * Undecided 0
SIGNAGE 4 3 * Employment pending 4
WORD OF MOUTH 2 0 * House sale pending 0
* Rented at Competitor 0
TOTALS 54 24 TOTALS 30

CLOSING RATIO: 33%

MARKETING ACTIVITIES & SOURCES FOR THE MONTH

* Updated all locators with new move in specials and pricing

* Updated all Internet ads with current pricing and specials.
Advertising in industry publications

OVERVIEW OF COMPARABLE PROPERTIES:

The surrounding comps are offering rents averaging one to three months off on a month lease.
and one and two bedrooms from $525 to $1095 and three bedrooms from $950 to $1275.

RESIDENT RETENTION:
Renewals for May averaged an increase of $32.00. We have continued to discuss all options with
residents to keep turnover to a minimum but home buying is very popular.
7- residents did not renew due to buying houses, 2-residents got new jobs, 1 had health reasons.

INCIDENTS ON THE PROPERTY:

The pool gate was broken and is now fixed.
MAINTENANCE: ROUTINE REPLACEMENTS:
Number
Number of: Replaced
MARKET READY UNITS 15 REFRIGERATORS 0
COMPLETE PAINTS 8 DISHWASHERS 0
TOUCH UPS 7 STOVES 0
WORK ORDERS 127 A/C COMPRESSORS 0
Pending Completed 0 CONDENSING UNITS 0
Misc 0 21 21 WATER HEATERS 0
Electrical 0 10 10 ICE MAKERS 0
Punch 0 14 14 GARBAGE DISPOSALS 0
HVAC 0 12 12 MICROWAVES 0
Plumbing 0 55 55 CARPETS 7
Property Ext. 0 5 5 CEILING FANS 0
Appliances 0 10 10 TOILETS 0
Safety 0 0 0 A/C FAN MOTORS 0
Total 0 127 127 COUNTER TOPS 0
ROOF LEAKS 0 CABINETS RESURFACED KITCHEN 0
PLUMBING LEAKS 0 BLINDS 9
TUBS RESURFACED 0
TUB TILES 0

CAPITAL IMPROVEMENTS IN PROGRESS:

N/A in progress.

PROBLEM AREAS NEEDING ATTENTION:

Sprinkler system repaired and tested.

CURRENT STAFF:

Manager Nancy Howland

Assistant Manager Beth McCall
Leasing Consultant Wendy Gillan
Leasing Consultant Temporary personnel
Maintenance Supervisor Gabriel Tellez
Assistant Maintenance Russell Briley
Maintenance/ Grounds Jorge Chavez and Jorge Bernal

ACCOMPLISHMENTS FOR THE MONTH:

Spring flowers have been planted.
rtney Downs Apartments
May-06
 Apt. #

12111, 12202, 16106, 4301, 12110, 19302, 6211,

12-212- 2, 12-111-2, 7-204- 1, 12-108- 2, 12-312- 1, 16-305- 1.

Courtney Downs
RENTAL SCHEDULE
May-06

UNIT TYPE #UNITS SIZE TOTAL MKT RENT MKT RENT MONTHLY ANNUAL
S/F PER UNIT PER S/F GROSS GROSS
A1 1BR 40 704 28,160 830 1.18 $33,200 $398,400
A1V 1BR 32 704 22,528 860 1.22 $27,520 $330,240
A2 1BR 18 910 16,380 935 1.03 $16,830 $201,960
B1 2BR 24 808 19,392 895 1.11 $21,480 $257,760
B1V 2BR 32 808 25,856 925 1.14 $29,600 $355,200
C 2BR 42 977 41,034 1130 1.16 $47,460 $569,520
C1 2BR 44 1,030 45,320 1150 1.12 $50,600 $607,200
C1V 2BR 22 1,030 22,660 1180 1.15 $25,960 $311,520
CV 2BR 24 977 23,448 1150 1.18 $27,600 $331,200
D 2BR 16 1,030 16,480 1150 1.12 $18,400 $220,800
DV 2BR 20 1,030 20,600 1180 1.15 $23,600 $283,200
E 3BR 24 1,140 27,360 1245 1.09 $29,880 $358,560
EV 3BR 4 1,140 4,560 1255 1.10 $5,020 $60,240

TOTAL 342 917 313,778 $1,044 $1.14 $357,150 $4,285,800

 EFFECTIVE EFFECTIVE EFFECTIVE Vacants Notice Net
CONCESSION CONCESSION PER S/F MONTHLY Vacants Leased Notice Leased Available
RENTS* PER UNIT GROSS
830.00 0.00 1.18 $33,200 9 1 8 3 0
805.00 55.00 1.10 $31,000 2 0 1 0 2
830.00 105.00 0.91 $14,940 1 0 1 1 5
830.00 65.00 1.03 $19,920 9 0 4 1 12
830.00 95.00 1.03 $26,560 0 0 0 0 0
830.00 300.00 0.85 $34,860 11 1 5 0 13
830.00 320.00 0.81 $36,520 4 0 2 1 7
830.00 350.00 0.81 $18,260 0 0 0 0 0
830.00 320.00 0.85 $19,920 0 0 0 0 0
830.00 320.00 0.81 $13,280 0 0 0 0 5
830.00 350.00 0.81 $16,600 0 0 0 0 0
1,145.00 100.00 1.00 $27,480 3 1 1 1 3
1,145.00 110.00 1.00 $4,580 0 0 0 0 0

$869 $192 0.95 $297,120 39 3 22 7 47

* Net of Concessions
 MARKET SURVEY
Courtney Downs
May-06

Apartment Name Courtney Downs Brookside Village Carriage Place Coyote Ranch Windsor @ Meridian Pinnacle @ the Creek Greenbriar @ Saddle Rock Dove Valley Cherrywood Village Reserve @ South Creek
Address 15849 E. Jamison Dr 5400 S Park Terrace 4900 S Ulster 16363 E Freemont Ave 9875 Jefferson Pkwy 6107 S Parker Rd 22159 E Ontario Dr 7550 S Blackhawk 16950 E Carlson Dr 15611 E Jamison Dr
Phone 720-870-6114 303-220-7086 303-740-7011 303-693-8787 303-256-7700 303-766-2500 303-617-6600 303-362-2000 303-805-7220 303-680-6696
Location Englewood, Co Greenwood Village, Co Denver, Co 80237 Aurora, Co Englewood, Co 80112 Centennial, Co Aurora, Co Englewood, Co 80112 Parker, Co 80134 Englewood, Co 80112
# of units 342 304 331 507 653 216 250 312 380 168
Age of Property 3 7 7 3 6 3 3 4 3 4
Application Fee $50.00 $30.00 $40.00 $35.00 $40.00 $35.00 $35.00 $35.00 $35.00 $40.00
Credit Card yes yes yes yes yes yes yes yes yes yes
Pets Allowed yes yes. yes yes yes yes yes yes yes yes
Pet Deposit 300 n/r 225-375 350-500 400-500 150-300 200-300 400 300-500 400 300-600
Sec. Deposit 150 300-400 275 275-325 300 100 250-400 199 99 225-375
W/D included Yes yes yes yes Only In Select Units Only Select Units no no no no
Covered Parking no no no yes yes yes yes yes yes yes
Garage Detached yes yes yes yes yes yes yes yes yes
Cable Yes yes yes yes yes yes yes yes yes yes
Tennis Courts no no yes no no no no yes yes yes
# of pools 1 1 2 1 1 1 1 1 2 1
Weight Room yes yes yes yes yes yes yes yes yes yes
Jacuzzi yes yes 2 1 1 1 1 1 2 1
Ceiling Fans yes yes yes yes yes yes yes yes yes yes
Microwaves yes yes yes yes yes yes yes yes yes yes
Mini Blinds yes yes yes yes yes yes yes yes yes yes
FF Freezer yes yes yes yes yes yes yes yes yes yes
Icemakers yes no yes yes yes yes yes yes yes yes
Fireplaces yes yes yes no yes yes yes yes yes yes
Access Gates no no yes yes yes no no yes yes yes
Alarm in Unit Prewired no yes no yes yes no yes no yes
Door to Door no yes no no no no no no no no
Aerobics/Kick Box no no no no no no no no no no
Movie Room no yes yes yes yes yes no yes yes yes
Computer Library yes yes yes yes yes yes yes yes yes yes
Indoor Basketball no no no no no no no no no no
Water Charge yes yes yes no yes yes yes yes yes yes
 MARKET SURVEY
Courtney Downs
May-06
(Concessions reduced rates)

PROPERTY: Courtney Downs Apt Brookside Village Carriage Place Coyote Ranch Windsor at Meridian Pinnacle @ the Creek Greenbriar@Saddle Rock 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 PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF
Efficiency
Efficiency
1B1B (A) 830 704 1.18 850 812 1.05 1030 776 1.33 855 779 1.10 640 627 1.02 620 685 0.91 785 707 1.11 795 768 1.04 850 707 1.20 795 763 1.04
1B1B (B) 895 808 1.11 975 815 1.20 1065 785 1.36 955 853 1.12 645 701 0.92 660 705 0.94 880 853 1.03 825 842 0.98
1B1B w/study 935 910 1.03 740 811 0.91 730 760 0.96
1B
1B
1B w/loft
1B1B w/study 835 956 0.87 910 1051 0.87
2B2B (E) 1,130 977 1.16 1140 1130 1.01 1265 1141 1.11 1160 1105 1.05 1110 1044 1.06 930 1120 0.83 1075 1033 1.04 1040 1115 0.93 1110 1033 1.07 995 1037 0.96
2B2B (F) 1,150 1030 1.12 1155 1144 1.01 1460 1237 1.18 1250 1192 1.05 1440 1196 1.20 1195 1093 1.09 1090 12220 0.09 1190 1093 1.09
2B2B (G) 1,150 1030 1.12 1030 1180 0.87
2B2B (H)
2B2B
2B w/study
2B2B TH
2B2B TH
3B2B 1,235 1140 1.08 1600 1485 1.08 1265 1141 1.11 1350 1398 0.97 1510 1330 1.14 995 1230 0.81 1425 1235 1.15 1270 1356 0.94 1375 1235 1.11 1195 1257 0.95
3B2B 1645 1414 1.16

% occ /leased 92 95 95% 94.00 96 96% 97 98.00% 98% 96 100 96% 0 0% 95 97 94% 92 95 93% 94.0 99 93% 88.0 92 93% 92.0 95 96%
Avg PSF 1 1.11 1.06 1.19 1.05 1.01 0.87 1.09 0.95 1.11 0.98
Avg Rents 1046 1144 1288 1114 994 808 1072 1004 1131 995
/ Avail)
Units(Total 342 9 304 11 331 5 507 20 653 216 8 292 22 312 8 360 41 0 168 5
Rates Special: 1x1, 2x2 830.00 Special: $300 off 11-12 mo Special:
leases. $200 off market onSpecial:
12 mo lease.
$300 to $400 off market
Sepcial:None
12 mo lease. Special:100 to 200 off rentsSpecial: $200 off per mo onSpecial:3
12 mo leases.
months free over Special:
12 month 3 lease.
Months off of market
Special: waive application or 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 were pulled off the internet
due to property will not give info.
Look and lease $250 off 1st full month
Ren: $25 to $50 increase Ren: $15-$25 Increase. Ren.: 20% off of market. Ren.: Increase $0 to $50. Ren: Info not avail per corporate
Ren:Per corporate Ren: $50 increases on 12 mo Ren:
renewal.
$40 increas for 12 month
Ren:lease
Average $15 to $20 increase.
Ren: Free carpet cleaning with 12mo.