805 California St, Tallahassee, Fl Fiscal Year Beginning February 2018

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1 5-Year After Tax Cash Flow Analysis INITIAL INVESTMENT Purchase Price + Acquisition Costs - 1st Mortgage + Total Loan Fees and Points Initial Investment 5-YEAR CASH FLOW SUMMARY $235,000 $4,700 $176,250 $5,288 $68,738 MORTGAGE DATA 1ST LIEN Loan Amount Interest Rate Amortization Period Loan Term Loan Fees & Points Periodic Payment Annual Debt Service $176, % 30 Years 30 Years 3.00% $1,001 $12,009 For the Year Ending POTENTIAL RENTAL INCOME (PRI) - Vacancy / Credit Loss EFFECTIVE RENTAL INCOME + Other Income GROSS OPERATING INCOME (GOI) - Operating Expenses NET OPERATING INCOME (NOI) - Depreciation - 1st Lien Interest Deduction - Amortized Loan Costs TAXABLE INCOME x Federal Marginal Tax Rate (39.6%) x Local Marginal Tax Rate (0%) x Medicare Surtax (3.8%) TAX LIABILITY (Savings) NET OPERATING INCOME (NOI) - Annual Debt Service 1st Lien CASH FLOW BEFORE TAXES - Tax Liability (Savings) CASH FLOW AFTER TAXES Year 1 Jan-2019 Year 2 Jan-2020 Year 3 Jan-2021 Year 4 Jan-2022 Year 5 Jan-2023 $31,800 $32,754 $33,737 $34,749 $35,791 $3,180 $3,275 $3,374 $3,475 $3,579 $28,620 $29,479 $30,363 $31,274 $32,212 $0 $0 $0 $0 $0 $28,620 $29,479 $30,363 $31,274 $32,212 $15,590 $15,924 $16,266 $16,616 $16,973 $13,030 $13,555 $14,097 $14,658 $15,239 $4,123 $4,302 $4,302 $4,302 $4,302 $9,634 $9,501 $9,359 $9,210 $9,052 $176 $176 $176 $176 $176 ($903) ($424) $260 $970 $1,709 ($358) ($168) $103 $384 $677 $0 $0 $0 $0 $0 ($34) ($16) $10 $37 $65 ($392) ($184) $113 $421 $742 $13,030 $13,555 $14,097 $14,658 $15,239 $12,009 $12,009 $12,009 $12,009 $12,009 $1,021 $1,546 $2,088 $2,649 $3,230 ($392) ($184) $113 $421 $742 $1,413 $1,730 $1,975 $2,228 $2,488 Page 1 of 8

2 Expense Detail Analysis INCOME For the Year Ending POTENTIAL RENTAL INCOME (PRI) - Vacancy / Credit Loss EFFECTIVE RENTAL INCOME (ERI) + Other Income GROSS OPERATING INCOME (GOI) EXPENSE DETAIL Real Estate Taxes Property Insurance Property Management Repairs And Maintenance Utilities : Electric Miscellaneous Contract Services TOTAL OPERATING EXPENSES NET OPERATING INCOME (NOI) Year 1 Jan-2019 Year 2 Jan-2020 Year 3 Jan-2021 Year 4 Jan-2022 Year 5 Jan-2023 $31,800 $32,754 $33,737 $34,749 $35,791 $3,180 $3,275 $3,374 $3,475 $3,579 $28,620 $29,479 $30,363 $31,274 $32,212 $0 $0 $0 $0 $0 $28,620 $29,479 $30,363 $31,274 $32,212 $2,500 $2,550 $2,601 $2,653 $2,706 $1,500 $1,530 $1,561 $1,592 $1,624 $2,290 $2,358 $2,429 $2,502 $2,577 $3,000 $3,060 $3,121 $3,184 $3,247 $4,800 $4,896 $4,994 $5,094 $5,196 $1,500 $1,530 $1,561 $1,592 $1,624 $15,590 $15,924 $16,266 $16,616 $16,973 $13,030 $13,555 $14,097 $14,658 $15,239 Page 2 of 8

3 Sales Proceeds Analysis Improvement Allocation (70%) $167,790 Interest Deduction Yes Depreciation Life 39 Years Loan Cost Deduction Yes U.S. Mid-Month Convention Yes For the Year Ending CAP Rate at Sale (subsequent year NOI) Sale Price - Cost of Sale - 1st Lien Balance SALES PROCEEDS BEFORE TAX Original Purchase & Costs (Basis) - Depreciation Taken Net Adjusted Basis Sale Price - Cost of Sale - Original Purchase & Costs (Basis) Capital Gain (Loss) Loan Fees & Points Paid - Loan Fees & Points Amortized Loan Fees & Points Remaining x Marginal Income Tax Rate Loan Fees & Points Tax Savings Sales Proceeds Before Tax - Federal Capital Gain Tax (20%) - Local Capital Gain Tax (0%) - Tax on Recaptured Depreciation (25%) - Medicare Capital Gain Tax (3.8%) + Loan Fees & Points Tax Savings SALES PROCEEDS AFTER TAX Year 1 Jan-2019 Year 2 Jan-2020 Year 3 Jan-2021 Year 4 Jan-2022 Year 5 Jan % 8.98% 8.99% 9.02% 9.00% $151,000 $157,000 $163,000 $169,000 $176,000 $7,550 $7,850 $8,150 $8,450 $8,800 $173,876 $171,368 $168,718 $165,919 $162,962 ($30,426) ($22,218) ($13,868) ($5,369) $4,238 $239,700 $239,700 $239,700 $239,700 $239,700 $4,123 $8,425 $12,727 $17,029 $21,331 $235,577 $231,275 $226,973 $222,671 $218,369 $151,000 $157,000 $163,000 $169,000 $176,000 $7,550 $7,850 $8,150 $8,450 $8,800 $239,700 $239,700 $239,700 $239,700 $239,700 ($96,250) ($90,550) ($84,850) ($79,150) ($72,500) $5,288 $5,288 $5,288 $5,288 $5,288 $176 $352 $529 $705 $881 $5,111 $4,935 $4,759 $4,582 $4, % 43.40% 43.40% 43.40% 43.40% $2,218 $2,142 $2,065 $1,989 $1,912 ($30,426) ($22,218) ($13,868) ($5,369) $4,238 ($19,250) ($18,110) ($16,970) ($15,830) ($14,500) $0 $0 $0 $0 $0 $1,031 $2,106 $3,182 $4,257 $5,333 ($3,658) ($3,441) ($3,224) ($3,008) ($2,755) $2,218 $2,142 $2,065 $1,989 $1,912 ($6,331) ($631) $5,209 $11,201 $18,072 Page 3 of 8

4 Measures of Investment Performance Analysis Acquisition CAP Rate 5.54% Combined LTV at Acquisition 75.00% Cost of Sale upon Disposition 5.00% Combined DSCR at Acquisition 1.09 Summary of Investment Measures For the Year Ending Loan-to-Value (LTV) - 1st Lien Combined LTV Debt Service Coverage Ratio (DSCR)-1st Lien Combined DSCR Before Tax Cash on Cash After Tax Cash on Cash Year 1 Jan-2019 Year 2 Jan-2020 Year 3 Jan-2021 Year 4 Jan-2022 Year 5 Jan % % % 98.18% 92.59% % % % 98.18% 92.59% % 2.25% 3.04% 3.85% 4.70% 2.06% 2.52% 2.87% 3.24% 3.62% Year Property Sold Before Tax Unleveraged Property Yield (IRR) After Tax Unleveraged Property Yield (IRR) Effective Unleveraged Tax Rate Effective Tax Rate (Includes Leverage) Effective Annual Cost of Borrowed Funds Before Tax Impact of Leverage After Tax Effective Cost of Funds After Tax Impact of Leverage 21.66% 20.13% 13.57% 0.00% 0.00% 0.00% 0.00% 0.00% 8.73% 7.14% 6.61% 6.35% 6.20% 4.94% 4.04% 3.74% 3.59% 3.51% Before Tax EQUITY Yield (IRR) After Tax EQUITY Yield (IRR) Page 4 of 8

5 Cash-on-Cash Analysis Annual Cash-on-Cash Dividend Return Year Year 1 Year 2 Year 3 Year 4 Year 5 Before Tax Cash on Cash Return After Tax Cash on Cash Return 1.49% 2.25% 3.04% 3.85% 4.70% 2.06% 2.52% 2.87% 3.24% 3.62% Page 5 of 8

6 Optimal Holding Period Analysis Before Tax Optimal Holding Period After Tax Optimal Holding Period Before Tax Optimal Hold Annual Yield After Tax Optimal Hold Annual Yield Optimal Holding Period by Annual Equity Yield (IRR) Year of Sale Year 1 Year 2 Year 3 Year 4 Year 5 Before Tax EQUITY Yield (IRR) After Tax EQUITY Yield (IRR) Page 6 of 8

7 Impact of Leverage Analysis Impact of Leverage Analysis (Before Tax) Year of Sale Year 1 Year 2 Year 3 Year 4 Year 5 Property Yield (IRR) Before Tax Effective Cost of Borrowed Funds Equity Yield (IRR) Before Tax 8.73% 7.14% 6.61% 6.35% 6.20% Impact of Leverage on Yield Page 7 of 8

8 Impact of Leverage Analysis Impact of Leverage Analysis (After Tax) Year of Sale Year 1 Year 2 Year 3 Year 4 Year 5 Property Yield (IRR) After Tax After Tax Effective Cost of Funds Equity Yield (IRR) After Tax 4.94% 4.04% 3.74% 3.59% 3.51% Impact of Leverage on Yield Page 8 of 8