4601 Almayo Investor Package

InvestorReturns Returns $1,335,470 IRR 58.65%

TotalCashNeeded$1,316,490 EquityMultiple 2.02x

LengthofProject24months

Property

Soft Costs Hard Costs Address 4601 Almayo San Diego CA 92117 Jurisdiction City of San Diego Zone RS-1-7 SFR/MFR/COMM SFR Existing Sq Ft 1,018 ft Lot size 19600 sqft FAR 45.00% Purchase Price $1,400,000 Down Payment $280,000 Loan Amount $1,120,000 $403,514.13 Quantity 0 17 17 Hold Costs $432,323.21 Square Feet 0 sqft 7497 sqft 7497 sqft Purchase Loan Points $11,200 Drafting Cost $0.00$102,000.00$102,000.00 $443,523.21 Engineering Cost $0.00$51,000.00$51,000.00 Permit Run Cost $0.00$1,500.00$1,500.00 Dry Utility - -$34,000.00 Property Taxes $30,800.00 Meps - -$1,000.00 Insurance Costs $14,000.00 Soil Testing - -$7,500.00 $44,800.00 Plan Check $0.00$51,000.00$51,000.00 Dev. Impact Fees $0.00 $0.00 $0.00 School Fees $0.00$35,910.63$35,910.63 Acquisition Fee $28,000 Water/Sewer Fees $0.00$60,953.50$60,953.50 Management Fee $75,312.30 Permit Fees $0.00$58,650.00$58,650.00 $103,312 $0.00$361,014.13$403,514.13 $68,874.13 Existing Improvements $75,000.00 New Construction $2,476,645.00 Landscape $140,000 Grading $30,000 Amenities $75,000 Optional $0 Optional $0 $2,796,645.00 2% Total Permitting Cost (See A) (A) Permit Table Lending Costs Other Soft Costs Management Costs Cost of Sale Total Total Total Total Total Total Design Fees Permit Costs NEWUNITSNEWADUS TOTAL Totals Total Soft Costs$1,064,023.77 Total Hard Costs$2,796,645.00 Total Use of Funds Acquisition $1,425,200 Soft Costs $1,064,024 Hard Costs $2,796,645 Total $5,285,869

Info

Phase 1 Phase 2 Phase 3 Phase 4 Purchase to 1st Submittal First Submittal to Issued Plans Building Starts to Leasing Leasing to Operational/Sale BeginningofPhase1 Month1 BeginningofPhase2 Month5 EndofPhase1 Month4 EndofPhase2 Month10 PhaseLength 4Months PhaseLength 6Months MortgageAmount(overphaseperiod) $33,600.00 MortgageAmount(overphaseperiod) $52,730.54 TaxesandInsurance $7,466.67 TaxesandInsurance $11,200.00 $41,066.67 $63,930.54 ProCalFee $61,800.00 ProCalFee $61,800.00 DryUtility $17,000.00 DryUtility $17,000.00 MEP's $500.00 MEP's $500.00 SoilTesting $7,500.00 PlanCheckFees $51,000.00 LawyerFees $10,000.00 ManagementFee $12,782.32 EquitytoClose $305,200.00 $143,082.32 ManagementFee $33,369.33 CostofSale $68,874.13 $504,243.46 $0.00 $0.00 BeginningofPhase3 Month11 BeginningofPhase4 Month20 EndofPhase3 Month19 EndofPhase4 Month24 PhaseLength 9Months PhaseLength 5Months MortgageAmount(overphaseperiod) $199,118.49 MortgageAmount(overphaseperiod) $146,874.19 TaxesandInsurance $16,800.00 TaxesandInsurance $9,333.33 $215,918.49 $156,207.52 RefiCost $0.00 ManagementFee $3,124.15 LoanCost $78,332.90 $3,124.15 ManagementFee $54,036.50 ProCalFee $30,900.00 DevelopmentImpactFees $0.00 SchoolFees $35,910.63 Water/SewerFees $60,953.50 PermitFees $58,650.00 $318,783.53 GCFirstPaymentReq $0.00 $0.00 $0.00 Hold Costs Hold Costs Soft Costs Soft costs Hard Costs Hard Costs Hold Costs Hold Costs Soft Costs Soft Costs Hard Costs Hard Costs Total Hold Costs Total Hold Costs Total Soft Costs Total Soft Costs Total Hard Costs Total Hard Costs Total Hold Costs Total Hold Costs Total Soft Costs Total Soft Costs Total Hard Costs Total Hard Costs Total Equity Needed for Phase 1 $545,310.13 Total Equity Needed for Phase 2 $207,012.86 Total Equity Needed for Phase 3 $534,702 02 Total Equity Needed for Phase 4 $159,331 67 Rental Income $129,866.67 Net Equity Needed for Phase 4 $29,465.00 Total Equity Needed Total $1,316,490

Rent Roll Sell Plan Hold Plan Sq Ft Bedroom Bathrooms Rents Quantity Total Rent Sell Rental Expenses Sell Costs Final Property Value Property Taxes Rent Other Income Vacancy Property Management Fees Maintenance Costs Utilities Insurance Cost 441 sqft 1 1 $2,600/month 17 $44,200 00 1018 sqft 1 1 $4,500/month 1 $4,500 00 $0 00 Monthly Gross Rent $48,700.00 Annual Operational Costs Income Total Gross Income $596,976.00 Total Operational Costs $112,968.71 Expected Sale Rental Expenses % 31.27% Sale Rental expenses $182,769.50 Total Use of Funds $5,285,868.77 Closing Costs (3% CBB, 1% Junk) $348,805.47 $5,634,674.24 Sale Net Income $414,206.50 Sale CAP rate 4.75% $8,720,136.75 Assesed Value $2,374,610.00 Gross Annual Rent $584,400.00 Property Tax 1.10% $584,400.00 $26,120.71 Parking $4,800.00 Vacancy Rate 2.00% RUBS $7,776.00 $11,688.00 Subscriptions $0.00 $12,576.00 Management Fee % 5.00% $29,220.00 Pest Control $2,922.00 General Maintenance $21,915.00 Landscape Costs $4,383.00 $29,220.00 Water $9,720.00 Trash $0.00 Electrical $0.00 $9,720.00 $7,000.00 Sell Plan Profits Hold Plan Operational NOI Property Value $8,720,137 Sell Costs $5,634,674 Gross Income $596,976 Operational Costs $112,969 Total Total Total Total Total Total Other Income Total Total Total Total Total Levered Profit $3,085,463 Net Operating Income $484,007

Refi Assumptions Trended Assumptions Construction Loan Assumptions Equity Multiple Equity on Equity Return Leaving Initial Equity in Deal 10 Year Trended Income/Expense after Refi Trended 10 Year IRR Table IntRate 6.00% EGIGrowth 3.00% LoanAmount $3,916,645.00 Year2 3.51x NumberofPayments 360 TaxGrowth 2.00% EquitytoCost 18.35% Year5 4.57x MaxADS $403,339.41 ExpenseGrowth 3.00% LoantoCost 81.65% Year10 7.07x Year3NOI $484,007.29 TrendedCAP 4.75% MaxDSCR 1.20 ExitCAPYear10 4.75% LoanAmount $5,606,000.00 SaleCosts 4.00% PaymentperMonth $33,610.80 Income $596,976.00 $614,885.28 $633,331.84 $652,331.79 $671,901.75 $692,058.80 $712,820.56 $734,205.18 Taxes $26,120.71 $26,643.12 $27,175.99 $27,719.51 $28,273.90 $28,839.37 $29,416.16 $30,004.49 OperatingExpenses $86,848.00 $89,453.44 $92,137.04 $94,901.15 $97,748.19 $100,680.63 $103,701.05 $106,812.09 NOI $484,007.29 $498,788.72 $514,018.81 $529,711.13 $545,879.66 $562,538.79 $579,703.35 $597,388.61 Debt $285,581.17 $285,581.17 $285,581.17 $285,581.17 $285,581.17 $285,581.17 $285,581.17 $285,581.17 BeforeTaxEquityFlow $198,426.12 $213,207.54 $228,437.63 $244,129.96 $260,298.49 $276,957.62 $294,122.17 $311,807.44 EquityonEquityReturn 15.07% 16.20% 17.35% 18.54% 19.77% 21.04% 22.34% 23.68% Income $596,976.00 $614,885.28 $633,331.84 $652,331.79 $671,901.75 $692,058.80 $712,820.56 $734,205.18 Taxes $26,120.71 $26,643.12 $27,175.99 $27,719.51 $28,273.90 $28,839.37 $29,416.16 $30,004.49 OperatingExpenses $86,848.00 $89,453.44 $92,137.04 $94,901.15 $97,748.19 $100,680.63 $103,701.05 $106,812.09 NOI $484,007.29 $498,788.72 $514,018.81 $529,711.13 $545,879.66 $562,538.79 $579,703.35 $597,388.61 Debt $403,329.63 $403,329.63 $403,329.63 $403,329.63 $403,329.63 $403,329.63 $403,329.63 $403,329.63 Before-TaxEquityFlow $80,677.66 $95,459.09 $110,689.18 $126,381.50 $142,550.03 $159,209.16 $176,373.72 $194,058.98 Income 0 $178,566.67 $2,218,564.56 $614,885.28 $633,331.84 $652,331.79 $671,901.75 $692,058.80 $712,820.56 $734,205.18 Expense $1,084,729.29 $406,427.39 $112,968.71 $116,096.56 $119,313.03 $122,620.66 $126,022.09 $129,520.01 $133,117.22 $136,816.57 NOI -$1,084,729.29 -$227,860.72 $2,105,595.85 $498,788.72 $514,018.81 $529,711.13 $545,879.66 $562,538.79 $579,703.35 $597,388.61 Year 3 4 5 6 7 8 9 10 Year 3 4 5 6 7 8 9 10 Year 1 2 3 4 5 6 7 8 9 10 Yield on Cost IRR Expected Sell Price Expected Profit Untrended (Project Completion) 9.16% Year 2 122.67% Year 2 $8,720,137 Trended (Year 10) 11.30% Year 5 64.94% Year 5 $9,485,523 Year 10 45.35% Year 10 $11,609,172 Phase Table 123.73% $3,085,463 $4,706,007 $7,989,519