Devoe Street Devoe Street Tallahassee, FL % Occupied Rent on the Rise Managed Built in 2007 Positive Cash Flow.

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1 100% Occupied Rent on the Rise Managed Built in 2007 Positive Cash Flow Prepared for Presented by Sealey Real Estate Solutions 1245 Cedar Center Drive Tallahassee FL 32301

2 Sealey Real Estate Solutions Devoe Street Income, Expenses & Cash Flow Property Overview Gross Scheduled Income $ 71,400 Purchase/Asking Price $ 580,000 Property Type Single-Family Total Vacancy and Credits $ (3,570) Improvements - No. of Units 7 Operating Expenses $ (18,570) Other - Price Per Unit $ 85,286 Annual Reserves: $ Closing Costs 17,000 Total Sq Ft 7,931 Net Operating Income (NOI) $ 49,260 Finance Points - Price Per Sq Ft $ Income per Unit $ 10,200 MIP Payments $ Total Acquisition Cost $ 597,000 Expenses per Unit $ (2,653) Annual Reserves: $ Debt Service: $ (26,760) Mortgage (s) $ 435,000 Cash Flow Before Taxes $ 22,500 Income Taxes: Benefit 33% (4,711) Down Payment / Investment $ 162,000 Cash Flow After Taxes $ 17,789 Assumptions Loan Information % of Asking % of Cost Rental Growth Rate: 1.71% Down Payment: $ 162, % 27.14% Expense Growth Rate: 1.00% Initial Loan Balance: $ 435, % 72.86% Capitalization Rate (Resale): 7.00% Marginal Tax Rate: 33.00% Loan Amount Interest Rate Term Payment Capital Gain Tax Rate: 15.00% $ 435, % 30 $2,230 $ 5.00% 30 $0 $ 4.00% 30 $0 Financial Measurements Year 1 Year 3 Year 7 Projected Cash Flow Before Taxes Debt Coverage Ratio (DCR) Loan-to-Value Ratio (LVR) 60.8% 56.5% 47.2% Capitalization Rate Based on Cost 8.25% 8.58% 9.42% Capitalization Rate Based on Resale Price 7.00% 7.00% 7.00% Gross Rent Multiplier Net Present Value (NPV) - B/ Taxes Net Present Value (NPV) - A/Taxes 13.50% 51,050 70,645 96, % 42,861 61,825 93,802 Cash on Cash Return - Before Taxes 13.89% 15.11% 18.20% Cash on Cash Return - After Taxes 10.98% 12.15% 13.92% Internal Rate of Return - Before Taxes 29.61% 23.77% Internal Rate of Return - After Taxes 23.64% 19.36% Modified Internal Rate of Return - Before Taxes Modified Internal Rate of Return - After Taxes 26.83% 18.79% 21.74% 15.74% $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $ Disclaimer: All information presented is believed to be accurate. The information, calculations and data presented in this report are believed to be accurate but are not guaranteed. The information contained in this report shall not be considered as a substitution for legal, accounting or other professional advice. Please seek proper legal and tax advice as appropriate before making investments.

3 Rental Activity Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Potential Rental Income $ 71,400 $ 72,624 $ 73,872 $ 75,350 $ 76,857 Less: Vacancy & Credit Losses (3,570) (3,631) (3,694) (3,767) (3,843) Less: Operating Expenses (18,570) (18,756) (18,943) (19,133) (19,324) Net Operating Income (NOI) $ 49,260 $ 50,237 $ 51,236 $ 52,450 $ 53,690 Less: Annual Debt Service (26,760) (26,760) (26,760) (26,760) (26,760) CASH FLOW Before Taxes $ 22,500 $ 23,477 $ 24,476 $ 25,690 $ 26,930 Income Taxes: Benefit 33% (4,711) (4,348) (4,789) (5,307) (5,838) CASH FLOW After Taxes $ 17,789 $ 19,129 $ 19,686 $ 20,383 $ 21,092 Property Resale Analysis Projected Sales Price $ 703,714 $ 717,673 $ 731,937 $ 749,282 $ 767,001 Less: Selling Expenses (56,297) (57,414) (58,555) (59,943) (61,360) Adjusted Projected Sales Price $ 647,417 $ 660,259 $ 673,382 $ 689,339 $ 705,641 Less: Mortgage(s) Balance Payoff (428,106) (420,888) (413,331) (405,418) (397,134) SALE PROCEEDS Before Taxes $ 219,311 $ 239,371 $ 260,052 $ 283,921 $ 308,506 Income Taxes: ReSale: Benefit 15% (11,753) (18,052) (24,393) (31,160) (37,978) SALE PROCEEDS After Taxes $ 207,558 $ 221,319 $ 235,658 $ 252,761 $ 270,529 Cash Position Cash Generated in Current Year $ 17,789 $ 19,129 $ 19,686 $ 20,383 $ 21,092 Cash Generated in Previous Years n/a 17,789 36,918 56,604 76,987 Cash Generated from Property Sale 207, , , , ,529 Original Initial Investment (162,000) (162,000) (162,000) (162,000) (162,000) Total Potential CASH Generated $ 63,347 $ 96,237 $ 130,262 $ 167,749 $ 206,608 Financial Measurements Debt Coverage Ratio (DCR) Loan-to-Value Ratio (LVR) 60.8% 58.6% 56.5% 54.1% 51.8% Capitalization Rate Based on Cost 8.25% 8.41% 8.58% 8.79% 8.99% Capitalization Rate Based on Resale Price 7.00% 7.00% 7.00% 7.00% 7.00% Cash-on-Cash Return with Equity 39.10% 15.85% 15.37% 15.91% 15.37% Cash-on-Cash Return - Before Taxes 13.89% 14.49% 15.11% 15.86% 16.62% Cash-on-Cash Return - After Taxes 10.98% 11.81% 12.15% 12.58% 13.02%

4 Expense Description Annual Amount Annual Increase Per Unit Per Sq Ft % of % of Expenses Revenue Insurance Legal Maintenance HVAC Maintenance Plan Pest Control Maint. Plan Property Taxes 1, % % 2.7% % % 0.9% 5, % % 8.0% % % 1.1% % % 1.2% 9, % 1, % 13.5% Total Annual Operating Expenses $ 18,570 $ 2,653 7, % 27.4%

5 Year 1 Sq Ft Year 2 Sq Ft Year 3 Sq Ft Year 4 Sq Ft Year 5 Sq Ft Potential Rental Income $ 71, $ 72, $ 73, $ 75, $ 76, Less: Vacancy & Credit Losses (3,570) (3,631) (3,694) (3,767) (3,843) Effective Rental Income Gross Operating Income $ 67, $ 68, $ 70, $ 71, $ 73, $ 67, $ 68, $ 70, $ 71, $ 73, Operating Expenses Insurance 1, , , , , Legal Maintenance 5, , , , , HVAC Maintenance Plan Pest Control Maint. Plan Property Taxes 9, , , , , Total Operating Expenses $ 18, $ 18, $ 18, $ 19, $ 19, Net Operating Income (NOI) $ 49, $ 50, $ 51, $ 52, $ 53, Less: Annual Debt Service (26,760) (26,760) (26,760) (26,760) (26,760) Cash Flow Before Taxes $ 22, $ 23, $ 24, $ 25, $ 26,

6 Cash Flow After Taxes Cash Flow Before Taxes $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $ Time Net Operating Reserves & MIP Debt Cash Flow Incomes Cash Flow Period Income Payments Service Before Tax Taxes After Tax Int Investment $ (162,000) $ (162,000) Year 1 49,260 - (26,760) 22,500 (4,711) 17,789 Year 2 50,237 - (26,760) 23,477 (4,348) 19,129 Year 3 51,236 - (26,760) 24,476 (4,789) 19,686 Year 4 52,450 - (26,760) 25,690 (5,307) 20,383 Year 5 53,690 - (26,760) 26,930 (5,838) 21,092

7 After Taxes Before Taxes 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Time Initial Investment Cash Flow Cash on Cash Income Cash Flow Cash on Cash Period Adj for Refinance Before Taxes Before Taxes Taxes After Taxes After Taxes Year 1 $ 162,000 $ 22, % $ (4,711) $ 17, % Year 2 162,000 23, % (4,348) 19, % Year 3 162,000 24, % (4,789) 19, % Year 4 162,000 25, % (5,307) 20, % Year 5 162,000 26, % (5,838) 21, %

8 9.00% 8.80% 8.60% 8.40% 8.20% 8.00% 7.80% Time Net Operating Cap Rate on Cost Resale Period Income (NOI) $ 597,000 Value Year 1 $ 49, % $ 703,714 Year 2 50, % 717,673 Year 3 51, % 731,937 Year 4 52, % 749,282 Year 5 53, % 767,001

9 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $ Time Projected Adj Projected Refi Proceeds Mortgage(s) Sale Proceeds Income Taxes Sale Proceeds Property Year / Year Period Resale Value Increase (if any) Balance Payoff Before Taxes From Sale After Taxes Equity Equity Increase Year 1 $ 647, % $ $ (428,106) $ 219,311 $ (11,753) $ 207,558 $ 207,558 $ 45,558 Year 2 660, % - (420,888) 239,371 (18,052) 221, ,319 13,761 Year 3 673, % - (413,331) 260,052 (24,393) 235, ,658 14,339 Year 4 689, % - (405,418) 283,921 (31,160) 252, ,761 17,103 Year 5 705, % - (397,134) 308,506 (37,978) 270, ,529 17,767

10 Time Net Operating Mortgage Debt Coverage Period Income Payments Before Taxes Year 1 $ 49,260 $ (26,760) 1.84 Year 2 50,237 (26,760) 1.88 Year 3 51,236 (26,760) 1.91 Year 4 52,450 (26,760) 1.96 Year 5 53,690 (26,760) 2.01