USA Courtney Downs LeaseCo, LLC

Balance Sheet
Books = Accrual
Aug 2006

ASSETS

Cash
Operating Cash 111,281.74
Security Deposits 71,375.06
Total Cash $182,656.80

OTHER ASSETS
Accounts Receivable (1,784.32)
Prepaid Expenses 35,248.04
Tax Escrow 158,086.29
Replacement Reserve 67,688.44
Capital / Repair Escrow 200,000.00
Total Other Assets 459,238.45

Total ASSETS 641,895.25

LIABILITIES & CAPITAL

LIABILITIES
Accounts Payable - Trade 90,640.71
Other Accounts Payable 552,062.55
Accrued Taxes 219,968.02
Prepaid Rent 4,241.94
Security Deposits 71,375.06
Notes Payable 62.65
Total Liabilities 938,350.93

CAPITAL

Owners Equity 100.00

Retained Earnings (296,555.68)
Total Capital (296,455.68)

Total LIABILITIES & CAPITAL 641,895.25

 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 Reforecast Reforecast Reforecast Reforecast Total Unit Sq. Ft.
342 313,778
Revenue
Gross Potential Rent 356,941 356,261 353,425 356,370 356,790 352,042 356,753 356,720 360,554 364,160 364,160 364,160 4,298,336 12,568.23 13.70
- Vacancy (50,457) (41,504) (32,721) (25,521) (27,566) (20,448) (24,375) (29,656) (26,000) (36,416) (40,058) (40,058) (394,780) (1,154.33) (1.26)
- Concessions & Disc. (80,765) (83,296) (83,632) (87,552) (89,252) (91,481) (83,568) (82,402) (80,000) (80,000) (75,000) (75,000) (991,947) (2,900.43) (3.16)
- Other Write-offs & Adj. (5,393) (4,621) (13,129) (3,761) (3,761) (3,761) (8,525) (4,902) (6,085) (6,085) (6,085) (6,085) (72,192) (211.09) (0.23)
Total Rental Income 220,326 226,840 223,943 239,537 236,211 236,353 240,285 239,760 248,469 241,659 243,017 243,017 2,839,417 8,302.39 9.05

Other Income 26,619 19,852 32,398 25,588 26,964 20,730 20,479 29,442 20,445 20,445 20,445 20,445 283,851 829.97 0.90
Total Revenue 246,945 246,692 256,342 265,125 263,175 257,083 260,764 269,202 268,914 262,104 263,462 263,462 3,123,269 9,132.36 9.95

Operating Expenses
Salary Expense 31,314 27,779 25,751 34,224 28,896 30,735 32,813 30,497 24,299 24,299 24,299 37,759 352,665 1,031.18 1.12
Operating Expense 4,125 1,829 4,155 2,418 3,488 1,785 4,044 1,759 3,030 3,030 3,030 3,030 35,723 104.45 0.11
Advertising Expense 10,172 7,867 8,790 12,875 9,217 4,566 9,311 9,128 5,860 6,385 5,860 6,885 96,916 283.38 0.31
Make Ready Expense 2,824 1,468 6,877 3,034 6,347 6,868 4,319 6,576 8,200 7,900 7,500 7,500 69,414 202.97 0.22
Maintenance Expense 484 2,348 2,996 938 1,390 2,786 4,753 1,518 2,295 13,595 2,295 2,295 37,692 110.21 0.12
Service Expense 2,095 (1,911) 750 1,089 7,856 6,550 3,601 3,942 6,640 4,640 4,640 2,395 42,287 123.65 0.13
Administrative Expense 15,018 14,773 20,876 15,092 17,309 15,941 18,145 18,942 15,067 15,084 15,469 14,969 196,687 575.11 0.63
Utility Expense 17,811 10,978 5,261 9,118 8,907 9,673 13,946 10,892 16,655 16,590 10,900 10,900 141,631 414.12 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 33,891 37,237 37,237 37,237 434,971 1,271.85 1.39

Total Operating Exp. 119,755 105,619 107,036 112,750 124,435 115,464 125,672 118,359 115,937 128,760 111,230 122,970 1,407,987 4,116.92 4.49
Net Operating Income 127,190 141,073 149,305 152,375 138,740 141,618 135,092 150,842 152,977 133,345 152,233 140,493 1,715,282 5,015.44 5.47

Rent Expense 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,254 193,254 193,254 193,254 2,319,043 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 14,150 7,730 3,637 6,600 6,600 3,300 3,300 66,362 194.04 0.21

Cash Flow Frm Operations (71,445) (51,438) (52,476) (47,528) (58,381) (65,785) (65,891) (46,048) (46,877) (66,510) (44,322) (56,062) (672,762) (1,967.14) (2.14)

Rent Guarantee 66,280 58,055 58,308 42,302 0 0 0 55,178 45,798 46,086 52,896 50,042 474,945

Balance Sheet Adjustments

Cash - Non Operating Accounts 792 (2,230) (4,698) 2,407 6,708 2,152 4,182 3,545 0 0 0 0 12,859
Accounts Receivable 9,672 (940) (590) 4,549 (4,100) (8,512) 14,748 7,299 0 0 0 0 22,125
Prepaid Assets 372 (275) 86 156 1,384 280 7,106 7,106 0 (30,110) 0 0 (13,894)
Escrow Deposits (34,325) (34,325) (34,325) (34,325) 324,584 (30,394) (30,394) (30,394) 26,264 (2,951) (2,951) (2,951) 113,513

Cash Increase (Decreae) From Assets (23,489) (37,770) (39,527) (27,213) 328,577 (36,473) (4,358) (12,444) 26,264 (33,061) (2,951) (2,951) 134,604

Accounts Payable (5,209) 4,548 22,679 5,948 (1,420) 65,950 8,685 30,633 (74,190) 0 0 0 57,624
Accrued Expenses 34,702 17,279 26,292 32,763 (282,521) 115,337 25,645 23,477 0 0 0 0 (7,028)
Other Payables 1,398 6,448 1,789 (2,315) (5,212) (3,153) (2,593) (5,234) 0 0 0 0 (8,871)
Notess Payable 0 (763) (382) (382) (382) (701) (382) 0 0 0 0 0 (2,991)

Cash Increase (Decreae) From Liab. 30,890 27,511 50,377 36,014 (289,534) 177,433 31,355 48,877 (74,190) 0 0 0 38,734

NET CASH FLOW 2,236 (3,642) 16,682 3,574 (19,338) 75,176 (38,893) 45,563 (49,005) (53,484) 5,624 (8,971) (24,479)
CUMM. NET CASH FLOW 29,014 25,372 42,054 45,628 26,290 101,466 62,573 108,136 59,130 5,646 11,270 2,299

$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

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 August 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) 2,845,760.00 2,849,500.00 (3,740.00) 4,302,534.00
Loss / Gain to Lease 1,000.00 0.00 1,000.00 Variance reflects (440.00) 0.00 (440.00) 0.00
residents booked at less
than market rate, was
not budgeted but
included in gross
potential.
Gross Potential Rent 356,720.00 356,985.00 (265.00) 2,845,320.00 2,849,500.00 (4,180.00) 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 (29,656.48) (28,559.00) (1,097.48) Actual occupancy of (252,248.47) (241,408.00) (10,840.47) (390,390.00)
91.25% versus 93%
budgeted.
Upfront Rent Concessions 0.00 (2,000.00) 2,000.00 Positive variance due to (105,908.03) (16,000.00) (89,908.03) (24,000.00)
no up front concessions
given.
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 (1,141.20) (500.00) (641.20) Additional write-offs due (16,040.10) (4,000.00) (12,040.10) (6,000.00)
to 2 skips.
Model Units (1,980.00) (1,980.00) 0.00 (15,840.00) (15,840.00) 0.00 (23,760.00)
Courtesy Officer Apt. 0.00 (575.00) 575.00 Savings due to (1,725.00) (4,600.00) 2,875.00 (6,900.00)
termination of position
Employee Apartment (1,780.80) (1,900.00) 119.20 (14,246.40) (15,200.00) 953.60 (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 rental of guest suite 0.00 (9,040.00) 9,040.00 (13,560.00)
at this time.
Lease Term Concessions (82,401.55) (85,817.00) 3,415.45 Selected units have (576,038.65) (682,785.00) 106,746.35 (1,019,064.00)
been reduced on
prorated 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 $239,759.97 $234,524.00 $5,235.97 $1,863,255.35 $1,860,627.00 $2,628.35 $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) 221.20 544.00 (322.80) 816.00
Covered Parking Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Late Charges & NSF Fees 1,790.00 2,300.00 (510.00) More residents paid on 13,676.45 18,400.00 (4,723.55) 27,600.00
time this month reducing
the late fees.
Month to Month Premium 155.00 300.00 (145.00) 1,357.23 2,400.00 (1,042.77) 3,600.00
Storage Fees 645.13 1,300.00 (654.87) Residents who moved 7,220.35 10,400.00 (3,179.65) 15,600.00
out at the end of the
month turned in their
storage units.
Repair & Maintenance Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Application Fees 1,660.00 1,000.00 660.00 More out-of-state 8,975.00 8,000.00 975.00 12,000.00
applicants applied at the
higher fee/rate.
Termination Fees & Damages 4,850.00 1,033.00 3,817.00 Collected more break 18,397.86 8,264.00 10,133.86 12,396.00
lease fees due to new
home purchases.
Miscellaneous Income 767.04 500.00 267.04 9,826.87 4,000.00 5,826.87 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 2,096.93 900.00 1,196.93 All new move ins with 19,387.41 7,200.00 12,187.41 10,800.00
pets are required to pay
a non refundable pet fee
and pay 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 6,959.90 8,700.00 (1,740.10) Garage occupancy is 52,266.88 69,600.00 (17,333.12) 104,400.00
93%, and some were
given away free as
move in incentives.
Water/Sewer Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cable/Telephone Income 1,022.80 1,000.00 22.80 8,064.80 8,000.00 64.80 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 505.48 190.00 315.48 655.48 1,520.00 (864.52) 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 3,300.00 2,000.00 1,300.00 Administration fee has 26,115.00 16,000.00 10,115.00 24,000.00
increased from $100 to
$150.
Move-Out Charges 5,385.93 929.00 4,456.93 Positive variance with 33,770.25 7,432.00 26,338.25 11,148.00
lease charges and
damages on soda
charges.
Short Term Lease Fees 303.39 225.00 78.39 2,136.54 1,800.00 336.54 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 29,441.60 20,445.00 8,996.60 202,071.32 163,560.00 38,511.32 245,340.00

Total Revenue $269,201.57 $254,969.00 $14,232.57 $2,065,326.67 $2,024,187.00 $41,139.67 $3,041,400.00

Expense
Managers Salary 8,481.56 9,545.00 1,063.44 Office staff is under 69,766.74 81,131.00 11,364.26 124,082.00
staffed. Positive
variance is offset in
tempory labor, below
Salaries 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Maintenance Salary 8,290.79 6,660.00 (1,630.79) Additional porter 82,855.73 56,611.00 (26,244.73) 86,582.00
position 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 3,513.70 0.00 (3,513.70) No budgeted bonus for 28,728.80 24,500.00 (4,228.80) 42,000.00
this month, however
accrued for July and
August bonuses.
Payroll Taxes 1,607.78 1,296.00 (311.78) 14,546.23 12,977.00 (1,569.23) 20,210.00
Group Insurance 1,529.50 1,442.00 (87.50) 11,998.50 11,536.00 (462.50) 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 5,311.04 0.00 (5,311.04) Temporary office help 16,476.35 0.00 (16,476.35) 0.00
needed to assist in the
office due to open
position. The variance
includes a full time
associate for July and
August.
Workers Comp 1,762.24 1,296.00 (466.24) 17,636.35 12,977.00 (4,659.35) 20,210.00
Total Salary Expense 30,496.61 20,239.00 (10,257.61) 242,008.70 199,732.00 (42,276.70) 310,388.00

Office Operations & Supplies 459.19 600.00 140.81 7,710.96 4,800.00 (2,910.96) 7,200.00
Telephones 737.13 1,080.00 342.87 7,418.63 8,640.00 1,221.37 12,960.00
Answering Svc. & Pagers 69.00 100.00 31.00 749.57 800.00 50.43 1,200.00
Postage & Delivery 269.31 200.00 (69.31) 1,384.15 1,600.00 215.85 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 123.75 1,300.00 1,176.25 265.75 1,645.00 1,379.25 1,645.00
Conventions/Seminars 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Employee Training (769.80) 100.00 869.80 Accrual reversal. 790.95 1,800.00 1,009.05 2,200.00
Furniture Rental 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Car Expenses 60.52 200.00 139.48 76.72 1,600.00 1,523.28 2,400.00
Permits & Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Credit Checks 311.00 750.00 439.00 2,987.11 6,000.00 3,012.89 9,000.00
Guest Suite Expense 498.65 0.00 (498.65) Monthly furniture rental 2,219.41 0.00 (2,219.41) 0.00
for guest suite.
Parking Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Operating Expense 1,758.75 4,330.00 2,571.25 23,603.25 26,885.00 3,281.75 39,005.00

Advertising & Promotions 6,088.62 3,452.00 (2,636.62) Due to For Rent Ad not 39,559.74 28,601.00 (10,958.74) 42,409.00
being budgeted.
Resident Promotions (460.59) 475.00 935.59 includes a reversal of 5,781.20 6,850.00 1,068.80 10,300.00
past accrual for resident
functions
Locators 0.00 1,033.00 1,033.00 No locator referrals this 13,585.25 8,264.00 (5,321.25) 12,396.00
month
Resident Referrals 3,500.00 900.00 (2,600.00) 7 referrals received from 13,000.00 7,200.00 (5,800.00) 10,800.00
residents at $500 each

Total Advertising Expense 9,128.03 5,860.00 (3,268.03) 71,926.19 50,915.00 (21,011.19) 75,905.00

Paint & Drywall 249.55 2,900.00 2,650.45 Positive variance due to 3,829.19 22,400.00 18,570.81 33,200.00
maintenance staff doing
all paints in house
instead of contracting
outside vendors.
Contract Cleaning Svcs. 3,120.00 3,000.00 (120.00) 17,905.00 22,500.00 4,595.00 32,500.00
Carpet Cleaning & Repairs 2,100.00 1,500.00 (600.00) More carpets were 13,252.13 10,800.00 (2,452.13) 15,900.00
cleaned to save
replacing of carpets.
Window Coverings 379.63 200.00 (179.63) 1,072.72 1,600.00 527.28 2,400.00
Vinyl & Tile Repairs 0.00 500.00 500.00 No need to replace any 0.00 4,000.00 4,000.00 6,000.00
at this time.
Lock & Keys 323.68 100.00 (223.68) 377.99 800.00 422.01 1,200.00
Counter & Tub Resurfacing 306.46 100.00 (206.46) 941.46 800.00 (141.46) 1,200.00
Other Redecorating 0.00 100.00 100.00 218.86 800.00 581.14 1,200.00
Cleaning Supplies 96.33 300.00 203.67 716.78 2,400.00 1,683.22 3,600.00
Total Make Ready Expense 6,575.65 8,700.00 2,124.35 38,314.13 66,100.00 27,785.87 97,200.00

General Maintenance & Supplies 1,042.22 800.00 (242.22) 5,342.57 6,200.00 857.43 9,200.00
HVAC Parts & Repairs 0.00 150.00 150.00 532.98 1,200.00 667.02 1,800.00
Plumbing Parts & Repairs 338.77 75.00 (263.77) 1,208.80 600.00 (608.80) 4,200.00
Electric Parts & Repairs 112.97 150.00 37.03 1,155.89 1,200.00 44.11 1,800.00
Roof & Gutter Repairs 0.00 100.00 100.00 0.00 800.00 800.00 1,200.00
Pools & Fountains 621.59 400.00 (221.59) 3,600.42 4,200.00 599.58 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 1,418.51 400.00 (1,018.51) 600.00
Appliance Parts & Repairs 185.56 75.00 (110.56) 1,413.31 600.00 (813.31) 900.00
Hardware 124.36 150.00 25.64 548.35 1,200.00 651.65 1,800.00
Exterior Painting 0.00 100.00 100.00 90.11 800.00 709.89 1,200.00
Uniforms (907.71) 0.00 907.71 Staff shirts had to be 547.85 2,100.00 1,552.15 2,100.00
ordered for the staff due
to wear and
tear.Variance also
includes a prior reversal
of an accrual
Elevator Service & Repairs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Security & Fire Systems 0.00 295.00 295.00 1,353.31 2,360.00 1,006.69 11,540.00
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 1,517.76 2,345.00 827.24 17,212.10 21,660.00 4,447.90 42,140.00
 Landscape & Grounds 3,335.90 2,745.00 (590.90) Overage was due to sod 19,854.93 20,970.00 1,115.07 32,205.00
being replaced at
building 2.
Trash Removal 530.82 775.00 244.18 4,039.64 6,950.00 2,910.36 10,050.00
Pest Control 75.00 75.00 0.00 600.00 600.00 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 0.00 360.00 360.00 540.00
Snow Removal 0.00 0.00 0.00 (522.13) 4,500.00 5,022.13 8,000.00
Total Service Expense 3,941.72 3,640.00 (301.72) 23,972.44 33,380.00 9,407.56 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 11,094.89 10,199.00 (895.89) Based on gross 85,113.50 80,969.00 (4,144.50) 121,658.00
collections.
Asset Management Fees 1,000.00 1,000.00 0.00 8,000.00 8,000.00 0.00 12,000.00
Investor Administration Fee 3,250.00 3,250.00 0.00 26,000.00 26,000.00 0.00 39,000.00
Legal Fees 500.00 550.00 50.00 10,367.70 4,400.00 (5,967.70) 6,600.00
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 1,626.29 2,050.00 423.71 1,958.87 2,400.00 441.13 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 1,471.29 0.00 (1,471.29) New computers were 3,936.30 1,400.00 (2,536.30) 1,400.00
needed for the office
due to many viruses.
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 18,942.47 17,049.00 (1,893.47) 136,097.86 123,669.00 (12,428.86) 184,258.00

Electricity 3,320.44 2,800.00 (520.44) Includes all common 27,159.75 22,400.00 (4,759.75) 33,600.00
areas.
Electricity Gas - Resident 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Natural Gas 565.72 1,800.00 1,234.28 We have lowered the 19,129.03 22,260.00 3,130.97 35,120.00
temperature of the pool
due to the summer heat,
which has resulted in
savings.
Water & Sewer 9,164.26 10,000.00 835.74 Based on billing from 72,276.58 73,000.00 723.42 106,000.00
Arapahoe County.
Water & Sewer - Resident Reimb (6,279.90) (4,500.00) 1,779.90 Based on billing from (36,357.72) (34,500.00) 1,857.72 (50,500.00)
Arapahoe County.
Water - irrigation 5,483.25 6,290.00 806.75 Based on billing from 7,580.54 28,260.00 20,679.46 40,840.00
Arapahoe County.
Electric - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Trash Reimbursement (2,090.37) (2,200.00) (109.63) (16,043.36) (17,600.00) (1,556.64) (26,400.00)
Water - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Utility -Vacant Electric 457.20 1,700.00 1,242.80 Less vacants and 7,719.15 13,600.00 5,880.85 20,400.00
controlling use of A/C by
staff and vendors during
the make ready process.

Utility - Vacant Gas 271.11 405.00 133.89 5,121.54 6,415.00 1,293.46 9,820.00
Tenant Reimbursement - Gas 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Utility Expense 10,891.71 16,295.00 5,403.29 86,585.51 113,835.00 27,249.49 168,880.00

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) 232,121.26 217,600.00 (14,521.26) 326,400.00

Franchise Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Insurance 7,487.56 6,691.00 (796.56) 56,549.60 53,528.00 (3,021.60) 80,292.00
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 35,106.56 33,891.00 (1,215.56) 289,370.86 271,128.00 (18,242.86) 406,692.00
Total Operating Expenses 118,359.26 112,349.00 (6,010.26) 929,091.04 907,304.00 (21,787.04) 1,376,163.00
NET OPERATING INCOME 150,842.31 142,620.00 8,222.31 1,136,235.63 1,116,883.00 19,352.63 1,665,237.00

Base Rent 106,586.67 106,587.00 0.33 852,693.36 852,696.00 2.64 1,279,044.00

Stated Rent 86,666.67 86,667.00 0.33 693,333.36 693,336.00 2.64 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 1,546,026.72 1,546,032.00 5.28 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 0.00 0.00 0.00 764.30 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- Leaseup Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Partnership Expense 0.00 0.00 0.00 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 3,636.82 6,600.00 2,963.18 replaced only 3 carpets 41,667.17 44,000.00 2,332.83 63,800.00
instead of our
anticipated 6
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 3,636.82 6,600.00 2,963.18 46,562.12 47,000.00 437.88 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) (46,047.85) (57,234.00) 11,186.15 (458,992.67) (476,149.00) 17,156.33 (720,611.00)

Rental Guarantee 55,177.83 0.00 55,177.83 280,122.48 124,335.14 155,787.34 124,335.14

9,129.98 (57,234.00) 66,363.98 (178,870.19) (351,813.86) 172,943.67 (596,275.86)
 Courtney Downs Apartments
Aug-06
LEASING & OCCUPANCY

NUMBER OF MOVE INS: 16 INCOME THIS MONTH: $269,201.00

NUMBER OF MOVE OUTS: 14 INCOME LAST MONTH: $260,764.00
NET FOR THE MONTH: 2 DIFFERENCE: 8437

TOTAL # GARAGES 120

# GARAGES OCCUPIED 112
OCCUPIED/LEASED %: 90.35% 90.06% GARAGES OCCUPIED % 93%

SOURCE OF TRAFFIC: REASONS WHY PROSPECTS DID NOT LEASE:

Traffic Leased
APTGUIDE.COM 0 0 * Job Transfer 8
APARTMENT GUIDE 15 2 * Too expensive. 19
YELLOW PAGES 0 0 * Future/No Availability/Waiting list 0
OTHER. NET 15 1 * Just started looking. 29
FOR RENT 4 0 * Waiting for Home to Sell 0
RENT.NET 2 0 * Current Lease to Expire 0
LIVES IN AREA 40 13 * Needs Ground Floor 8
RESIDENT REFERRAL 9 4 * Moved Elsewhere 0
LOCATORS 14 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 6 * Employment pending 5
WORD OF MOUTH 6 0 * House sale pending 10
* Rented at Competitor 0
TOTALS 123 26 TOTALS 97

CLOSING RATIO: 33%

MARKETING ACTIVITIES & SOURCES FOR THE MONTH

* Dropped off muffins and brochures to Blue Lynx corporation.

* Dropped off brochures to Colorado Athletic Club.
* Dropped off doughnuts and brochures to Pulte 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 Richmond 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 $595, two bedrooms at $730 and three bedrooms starting at $1125.
Look and leases are being locked in with no security deposit with some of our competitors.

RESIDENT RETENTION:
We had 7 renewals for leases expiring in August. These renewals averaged a $26.43 per lease increase.

INCIDENTS ON THE PROPERTY:

Resident drove into trellis at the entrance of the property on 8/15/06. Resident is insured and paying for repairs.
MAINTENANCE: ROUTINE REPLACEMENTS:
Number
Number of: Replaced Apt. #
MARKET READY UNITS 16 REFRIGERATORS 0
COMPLETE PAINTS 9 DISHWASHERS 1 10302
TOUCH UPS 7 STOVES 0
WORK ORDERS 223 A/C COMPRESSORS 0
Pending Completed 0 CONDENSING UNITS 0
Misc 0 28 28 WATER HEATERS 0
Electrical 0 48 48 ICE MAKERS 0
Punch 0 16 16 GARBAGE DISPOSALS 0
HVAC 0 20 20 MICROWAVES 0

9102, 13202, 13206, 13208, 16207,

Plumbing 0 64 64 CARPETS 6 13106, 12107- guest bedroom.
Property Ext. 0 8 8 CEILING FANS 0
Appliances 0 30 30 TOILETS 0
Safety 0 9 9 A/C FAN MOTORS 0
Total 0 223 223 COUNTER TOPS 0
ROOF LEAKS 0 CABINETS RESURFACED KITCHEN 0
16304- 1, 7201-1, 7101- 1, 10307-
1, 4206- 2, 4205-1 ,10310-2, 2306-
PLUMBING LEAKS 0 BLINDS 13 1, 6110-1, 10109-2.
TUBS RESURFACED 0
TUB TILES 0

CAPITAL IMPROVEMENTS IN PROGRESS:

N/A in progress.

PROBLEM AREAS NEEDING ATTENTION:

Building #11 still in repair, putting stones up on 9/2/06

CURRENT STAFF:

Manager Nancy Howland

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

ACCOMPLISHMENTS FOR THE MONTH:

Trellis repaired.
Pool heater repaired and cleaned.
Courtney Downs
RENTAL SCHEDULE
August 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 28,160 830 1.18 $33,200 $398,400 690.00 140.00 0.98 $27,600 9 1 8 3 0
A1V 1BR 32 704 22,528 860 1.22 $27,520 $330,240 690.00 55.00 1.10 $31,000 2 0 1 0 2
A2 1BR 18 910 16,380 935 1.03 $16,830 $201,960 690.00 245.00 0.76 $12,420 1 0 1 1 5
B1 2BR 24 808 19,392 895 1.11 $21,480 $257,760 830.00 65.00 1.03 $19,920 9 0 4 1 12
B1V 2BR 32 808 25,856 925 1.14 $29,600 $355,200 830.00 95.00 1.03 $26,560 0 0 0 0 0
C 2BR 42 977 41,034 1130 1.16 $47,460 $569,520 830.00 300.00 0.85 $34,860 11 1 5 0 13
C1 2BR 44 1,030 45,320 1150 1.12 $50,600 $607,200 830.00 320.00 0.81 $36,520 4 0 2 1 7
C1V 2BR 22 1,030 22,660 1180 1.15 $25,960 $311,520 830.00 350.00 0.81 $18,260 0 0 0 0 0
CV 2BR 24 977 23,448 1150 1.18 $27,600 $331,200 830.00 320.00 0.85 $19,920 0 0 0 0 0
D 2BR 16 1,030 16,480 1150 1.12 $18,400 $220,800 830.00 320.00 0.81 $13,280 0 0 0 0 5
DV 2BR 20 1,030 20,600 1180 1.15 $23,600 $283,200 830.00 350.00 0.81 $16,600 0 0 0 0 0
E 3BR 24 1,140 27,360 1245 1.09 $29,880 $358,560 1,145.00 100.00 1.00 $27,480 3 1 1 1 3
EV 3BR 4 1,140 4,560 1255 1.10 $5,020 $60,240 1,145.00 110.00 1.00 $4,580 0 0 0 0 0

TOTAL 342 917 313,778 $1,044 $1.14 $357,150 $4,285,800 $845 $213 0.92 $289,000 39 3 22 7 47
* Net of Concessions
 MARKET SURVEY
Courtney Downs
August-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
August-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 0.98 690 779 0.89 615 627 0.98 620 685 0.91 700 768 0.91 680 707 0.96 625 763 0.82
1B1B (B) 690 808 0.85 690 853 0.81 615 701 0.88 660 705 0.94 700 842 0.83
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 0.85 790 1105 0.71 1110 1044 1.06 799 1120 0.71 875 1115 0.78 829 1033 0.80 699 1037 0.67
2B2B (F) 830 1030 0.81 790 1192 0.66 1440 1196 1.20 875 1220 0.72 829 1093 0.76
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 1170 1398 0.84 1510 1330 1.14 995 1230 0.81 1100 1356 0.81 1375 1235 1.11 1195 1257 0.95
3B2B

% occ /leased 90 90.35 95% 97 99 96% 0 0% 93 91 94% 98.0 97 93% 92.0 92 94% 92.0 95 96%
Avg PSF 1 0.87 0.78 0.99 0.85 0.81 0.91 0.81
Avg Rents 815 1114 994 808 850 1131 995
/ Avail)
Units(Total 342 13 507 9 653 216 16 312 12 360 32 0 168 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.