Courtney Downs March 06

USA Courtney Downs LeaseCo, LLC Budget Comparison Books = Accrual For the period ending March 31, 2006

Account Revenue Market Rent Loss / Gain to Lease

MTD Actual

MTD Budget

355,720.00 (2,095.00)

355,390.00 0.00

353,625.00 0.00 (200.00) (32,720.99)

355,390.00 0.00 0.00 (31,811.00)

Upfront Rent Concessions

(3,118.20)

(2,000.00)

Corporate Discount Delinquent Rent Adjustments & W/O

0.00 0.00 (8,793.07)

0.00 0.00 (500.00)

Model Units (1,980.00) Courtesy Officer Apt. (575.00) Employee Apartment (1,780.80) Housekeeping & Maintenance Fee 0.00 Guest Suite 0.00

(1,980.00) (575.00) (1,900.00) 0.00 (1,130.00)

Gross Potential Rent Prepaid Homeowners Dues Residential Rent Vacancy Loss

Lease Term Concessions

(80,513.65)

(85,068.00)

Homeowner's Assn Dues Income 0.00 Homeowner Dues Paid 0.00 Model Units 0.00 Lease Contract Difference 0.00 Total Rental Income $223,943.29

0.00 0.00 0.00 0.00 $230,426.00

Laundry Income Vending Income Covered Parking Income Late Charges & NSF Fees

0.00 0.00 0.00 1,637.65

0.00 68.00 0.00 2,300.00

Month to Month Premium Storage Fees Repair & Maintenance Fees Application Fees Termination Fees & Damages

103.23 1,086.38 0.00 1,385.00 4,915.00

300.00 1,300.00 0.00 1,000.00 1,033.00

Miscellaneous Income No Name Interest Income Pet Rents & Fees

651.34 0.00 0.00 4,027.44

500.00 0.00 0.00 900.00

Tower Rent Asset Management Fee Parking Spaces Income Homeowners Assessments Garage Income

0.00 0.00 0.00 0.00 6,853.64

0.00 0.00 0.00 0.00 8,700.00

Water/Sewer Income Cable/Telephone Income HOA Contributions Developer Developer HOA Dues Forfeited Deposits Developer Contributions Interest Income Other Thunder Income Administration Fee

0.00 1,006.00 0.00 0.00 0.00 0.00 0.00 0.00 4,650.00

0.00 1,000.00 0.00 0.00 190.00 0.00 0.00 0.00 2,000.00

Move-Out Charges

6,068.01

929.00

14.52 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 32,398.21

225.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 20,445.00

$256,341.50

$250,871.00

8,620.19

9,545.00

Short Term Lease Fees Extra-Ordinary Income Corporate Rent Corporate Units - expense Deferred Revenue HOA Developer Contributions Acquisition Fees Income - Rental Income - C.A.M. Income - Insurance Income - Taxes Income - Interest Income - Other Income - Condo Sales Total Other Income Total Revenue Expense Managers Salary

$ Variance

MTD Variance Comment

YTD Actual

YTD Budget

$ Variance

Annual Budget

330.00 (2,095.00) Variance due to lowering renewal increases during the winter months to help maintain occupancy. (1,765.00) 0.00 (200.00) (909.99) Occupancy averaged 91%, in line with budet. We cl osed out the month at 92%. (1,118.20) Holiday give away of "Ipod" and Look and Lease special. 0.00 0.00 (8,293.07) Due to high number of moveouts with excessive charges partially offset in miscellaneous income. 0.00 0.00 119.20 0.00 1,130.00 Guest Suite budgeted and never set up due to lack of demand.

1,067,160.00 (815.00)

1,066,170.00 0.00

990.00 (815.00)

4,302,534.00 0.00

1,066,345.00 0.00 282.00 (124,682.48)

1,066,170.00 0.00 0.00 (102,501.00)

175.00 0.00 282.00 (22,181.48)

4,302,534.00 0.00 0.00 (390,390.00)

(87,850.48)

(6,000.00)

(81,850.48)

(24,000.00)

0.00 0.00 (10,135.02)

0.00 0.00 (1,500.00)

0.00 0.00 (8,635.02)

0.00 0.00 (6,000.00)

(5,940.00) (1,725.00) (5,342.40) 0.00 0.00

(5,940.00) (1,725.00) (5,700.00) 0.00 (3,390.00)

0.00 0.00 357.60 0.00 3,390.00

4,554.35 Positive variance achieved through reduction of concessions in renewals. 0.00 0.00 0.00 0.00 $(6,482.71) Explained above.

(159,842.36)

(252,830.00)

92,987.64

(1,019,064.00)

0.00 0.00 0.00 0.00 $671,109.26

0.00 0.00 0.00 0.00 $686,584.00

0.00 0.00 0.00 0.00 $(15,474.74)

0.00 0.00 0.00 0.00 $2,796,060.00

0.00 0.00 0.00 4,069.65

0.00 204.00 0.00 6,900.00

0.00 (204.00) 0.00 (2,830.35)

503.23 3,290.28 0.00 2,735.00 5,417.86

900.00 3,900.00 0.00 3,000.00 3,099.00

(396.77) (609.72) 0.00 (265.00) 2,318.86

7,503.79 0.00 0.00 6,542.94

1,500.00 0.00 0.00 2,700.00

6,003.79 0.00 0.00 3,842.94

0.00 0.00 0.00 0.00 20,952.86

0.00 0.00 0.00 0.00 26,100.00

0.00 0.00 0.00 0.00 (5,147.14)

0.00 3,018.00 0.00 0.00 0.00 0.00 0.00 0.00 9,840.00

0.00 3,000.00 0.00 0.00 570.00 0.00 0.00 0.00 6,000.00

0.00 18.00 0.00 0.00 (570.00) 0.00 0.00 0.00 3,840.00

14,530.88

2,787.00

11,743.88

11,148.00

464.52 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 78,869.01

675.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 61,335.00

(210.48) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 17,534.01

2,700.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 245,340.00

$749,978.27

$747,919.00

$2,059.27

$3,041,400.00

26,212.56

28,635.00

2,422.44

0.00 (68.00) 0.00 (662.35) Decrease in overall late fees due to increase in evictions of residents who paid late chronically. (196.77) (213.62) 0.00 385.00 3,882.00 Increased number of residents breaking leases due to home purchases. 151.34 0.00 0.00 3,127.44 Aggressive collection of pet fees as a result of property pet inspection in January. 0.00 0.00 0.00 0.00 (1,846.36) Decrease in garage rentals dure to higher number of move-outs than projected. 0.00 6.00 0.00 0.00 (190.00) 0.00 0.00 0.00 2,650.00 Increased price of admin fee. Currently chargins $150 per lease 5,139.01 Aggressive collection of moveout damages. (210.48) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11,953.21 Explained above. $5,470.50 Explained above.

924.81

YTD Variance Comment

(23,760.00) (6,900.00) (22,800.00) 0.00 (13,560.00) Guest Suite budgeted and never set up due to lack of demand.

0.00 816.00 0.00 27,600.00 Decrease in overall late fees due to increase in evictions of residents who paid late chronically. 3,600.00 15,600.00 0.00 12,000.00 12,396.00 Increased number of residents breaking leases due to home purchases. 6,000.00 Bad debt collections. 0.00 0.00 10,800.00

0.00 0.00 0.00 0.00 104,400.00 Decrease in overall occupancy of garages. 0.00 12,000.00 0.00 0.00 2,280.00 0.00 0.00 0.00 24,000.00 Increased price of admin fee.

124,082.00 Due to not having a leasing position filled, we hired temp service beginning in March 2006, see contract labor.

Salaries Maintenance Salary

0.00 10,546.22

0.00 6,660.00

Salary - Administrative Commissions & Bonus

0.00 (1,778.60)

0.00 3,500.00

1,372.30 1,463.00 0.00 0.00 3,093.76

1,576.00 1,442.00 0.00 0.00 0.00

2,433.78 25,750.65

1,576.00 24,299.00

Office Operations & Supplies

2,170.79

600.00

Telephones Answering Svc. & Pagers Postage & Delivery Patrol Services Membership Dues Publications & Subscriptions Conventions/Seminars Employee Training Furniture Rental Car Expenses Permits & Fees Credit Checks Guest Suite Expense Parking Cost Total Operating Expense

824.07 212.76 190.05 0.00 0.00 0.00 0.00 275.75 0.00 0.00 0.00 481.59 0.00 0.00 4,155.01

1,080.00 100.00 200.00 0.00 0.00 0.00 0.00 100.00 0.00 200.00 0.00 750.00 0.00 0.00 3,030.00

Advertising & Promotions

4,805.92

3,452.00

Resident Promotions Locators

766.16 2,218.25

475.00 1,033.00

1,000.00 8,790.33

900.00 5,860.00

Paint & Drywall

2,296.89

2,500.00

Contract Cleaning Svcs.

2,385.00

2,500.00

Carpet Cleaning & Repairs

1,819.00

1,200.00

Window Coverings Vinyl & Tile Repairs Lock & Keys Counter & Tub Resurfacing Other Redecorating Cleaning Supplies Total Make Ready Expense

0.00 0.00 26.33 0.00 218.86 130.65 6,876.73

200.00 500.00 100.00 100.00 100.00 300.00 7,500.00

General Maintenance & Supplies 1,034.34

750.00

HVAC Parts & Repairs Plumbing Parts & Repairs Electric Parts & Repairs Roof & Gutter Repairs Pools & Fountains Gates & Entrances Glass & Screens Appliance Parts & Repairs Hardware Exterior Painting Uniforms Elevator Service & Repairs Security & Fire Systems

176.64 171.23 157.97 0.00 450.76 0.00 0.00 412.25 179.04 8.96 0.00 0.00 404.55

150.00 75.00 150.00 100.00 400.00 0.00 50.00 75.00 150.00 100.00 0.00 0.00 295.00

Uninsured Losses Locks & Keys Bulbs & Ballasts Total Maintenance Expense

0.00 0.00 0.00 2,995.74

0.00 0.00 0.00 2,295.00

Landscape & Grounds

0.00

2,745.00

Trash Removal Pest Control Security Patrols Window Cleaning Svc. Interior Cleaning Svc. Cable Television Snow Removal Total Service Expense

345.70 75.00 0.00 0.00 0.00 0.00 329.12 749.82

775.00 75.00 0.00 0.00 0.00 45.00 1,000.00 4,640.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Payroll Taxes Group Insurance Disability Insurance 401k Match Contract Labor

Workers Comp Total Salary Expense

Resident Referrals Total Advertising Expense

Expenses - CAM - Electric Expenses - CAM - Water/Sewer Expenses - CAM - Gas Expenses - CAM - Grounds Expenses - CAM - Trash Removal Expenses - CAM - Cleaning Svcs Expenses - CAM - Maintenance Expenses - CAM - Insurance Expenses - CAM - R/E Taxes Total CAM Expense

0.00 (3,886.22) Due to having a groundskeeper that is not budgeted for, this is offset in make ready. 0.00 5,278.60 Due to timing of payroll payout. Costs are in line with budget YTD 203.70 (21.00) 0.00 0.00 (3,093.76) Hired a leasing temp service to fill position of terminated leasing consultant. Partially off-set in salaries. (857.78) (1,451.65) Explained above.

0.00 29,667.89

0.00 19,980.00

0.00 (9,687.89)

0.00 7,538.30

0.00 7,000.00

0.00 (538.30)

5,223.69 4,655.00 0.00 0.00 3,093.76

4,448.00 4,326.00 0.00 0.00 0.00

(775.69) (329.00) 0.00 0.00 (3,093.76)

8,452.62 84,843.82

4,448.00 68,837.00

(4,004.62) (16,006.82)

4,230.14

1,800.00

(2,430.14)

255.93 (112.76) 9.95 0.00 0.00 0.00 0.00 (175.75) 0.00 200.00 0.00 268.41 0.00 0.00 (1,125.01) Explained above.

3,267.54 380.73 774.09 0.00 0.00 142.00 0.00 365.75 0.00 0.00 0.00 949.10 0.00 0.00 10,109.35

3,240.00 300.00 600.00 0.00 0.00 0.00 0.00 300.00 0.00 600.00 0.00 2,250.00 0.00 0.00 9,090.00

(27.54) (80.73) (174.09) 0.00 0.00 (142.00) 0.00 (65.75) 0.00 600.00 0.00 1,300.90 0.00 0.00 (1,019.35)

12,960.00 1,200.00 2,400.00 0.00 0.00 1,645.00 0.00 2,200.00 0.00 2,400.00 0.00 9,000.00 0.00 0.00 39,005.00 Explained above.

(1,353.92) For Rent Magazine was not budgeted for and we were unable to be released from contract set by previous manager. (291.16) (1,185.25) secured 6 locators leases this month. Budgeted for 3 (100.00) 2 referrals at $500 each (2,930.33) Explained above.

15,396.33

10,356.00

(5,040.33)

3,485.84 3,447.50

1,425.00 3,099.00

(2,060.84) (348.50)

42,409.00 For Rent Magazine was not budgeted for and we were unable to be released from contract set by previous manager. 10,300.00 12,396.00

4,500.00 26,829.67

2,700.00 17,580.00

(1,800.00) (9,249.67)

10,800.00 75,905.00 Explained above.

203.11

2,451.96

7,500.00

5,048.04

115.00

5,165.00

7,500.00

2,335.00

2,922.00

3,600.00

678.00

(2.00) 0.00 26.33 185.00 218.86 202.09 11,169.24

600.00 1,500.00 300.00 300.00 300.00 900.00 22,500.00

602.00 1,500.00 273.67 115.00 81.14 697.91 11,330.76

1,547.11

2,250.00

702.89

9,200.00

532.98 573.17 972.75 0.00 939.50 0.00 269.29 793.03 226.50 77.40 180.56 0.00 (284.05)

450.00 225.00 450.00 300.00 1,200.00 0.00 150.00 225.00 450.00 300.00 0.00 0.00 885.00

(82.98) (348.17) (522.75) 300.00 260.50 0.00 (119.29) (568.03) 223.50 222.60 (180.56) 0.00 1,169.05

1,800.00 4,200.00 1,800.00 1,200.00 5,800.00 0.00 600.00 900.00 1,800.00 1,200.00 2,100.00 0.00 11,540.00

0.00 0.00 0.00 5,828.24

0.00 0.00 0.00 6,885.00

0.00 0.00 0.00 1,056.76

0.00 0.00 0.00 42,140.00

0.00

2,745.00

2,745.00

32,205.00 Under due to timing of annuals installation.

1,379.85 225.00 0.00 0.00 0.00 0.00 (670.88) 933.97

3,075.00 225.00 0.00 0.00 0.00 135.00 4,000.00 10,180.00

1,695.15 0.00 0.00 0.00 0.00 135.00 4,670.88 9,246.03

10,050.00 900.00 0.00 0.00 0.00 540.00 8,000.00 51,695.00 Explained above.

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(1,570.79) Staisfacts survey costs

(619.00) 9 carpet cleans and a reclass from previous month 200.00 500.00 73.67 100.00 (118.86) 169.35 623.27 (284.34) Includes purchase of new weights for work out room (26.64) (96.23) (7.97) 100.00 (50.76) 0.00 50.00 (337.25) (29.04) 91.04 0.00 0.00 (109.55) monthly monitoring costs. We are evaluating a new supplier which will save us money 0.00 0.00 0.00 (700.74) 2,745.00 service does not begin unitl April, budget reflects March start date. Will be in line YTD 429.30 0.00 0.00 0.00 0.00 45.00 670.88 ice melt 3,890.18 Explained above. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 86,582.00 Due to having a groundskeeper that is not budgeted for, this is offset in make ready. 0.00 42,000.00 20,210.00 17,304.00 0.00 0.00 0.00 Hired a leasing temp service to fill position of terminated leasing consultant in March and April. 20,210.00 310,388.00 7,200.00 US Advisors charged property for a telephone survey in April 2006.

33,200.00 Due to having an in house employee duing this work. 32,500.00 Due to having an in house employee duing this work. 15,900.00 2,400.00 6,000.00 1,200.00 1,200.00 1,200.00 3,600.00 97,200.00 Explained above.

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Management Fees Asset Management Fees Investor Administration Fee Legal Fees

10,615.44 1,000.00 3,250.00 6,011.00

10,035.00 1,000.00 3,250.00 550.00

Accounting Fees Postage & Delivery Bank Charges Partnership Insurance Other Administrative Expenses Travel Expense Employee Activities Printing Computer Consulting Computer Expense Bank Charges Development Cost Total Admin. Expense

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 20,876.44

0.00 0.00 0.00 0.00 0.00 0.00 50.00 0.00 0.00 0.00 0.00 0.00 14,885.00

2,807.92 0.00 3,453.46 8,397.92 (5,330.41) (3,413.42)

2,800.00 0.00 4,000.00 8,500.00 (4,000.00) 0.00

Electric - Tenant Reimbursement 0.00 Trash Reimbursement (1,792.78) Water - Tenant Reimbursement 0.00 Utility -Vacant Electric 847.88 Utility - Vacant Gas 290.50 Tenant Reimbursement - Gas 0.00 Total Utility Expense 5,261.07

0.00 (2,200.00) 0.00 1,700.00 1,100.00 0.00 11,900.00

Electricity Electricity Gas - Resident Natural Gas Water & Sewer Water & Sewer - Resident Reimb Water - irrigation

(580.44) 0.00 0.00 (5,461.00) Due to aggressive evictions of chronic late paying residents. 0.00 0.00 0.00 0.00 0.00 0.00 50.00 0.00 0.00 0.00 0.00 0.00 (5,991.44) Explained above. (7.92) 0.00 546.54 102.08 1,330.41 Based on actual usage. 3,413.42 Due to a credit from the water and sewer company from a broken meter that was over paid on in 2005. 0.00 (407.22) 0.00 852.12 809.50 0.00 6,638.93 Explained above.

29,917.00 3,000.00 9,750.00 1,650.00

(988.26) 0.00 0.00 (4,361.00)

121,658.00 12,000.00 39,000.00 6,600.00 Due to aggressive evictions of chronic late paying residents. 0.00 0.00 0.00 0.00 0.00 1,000.00 2,600.00 0.00 0.00 1,400.00 0.00 0.00 184,258.00 Explained above.

0.00 0.00 0.00 0.00 0.00 825.49 112.23 0.00 0.00 63.95 0.00 0.00 50,667.93

0.00 0.00 0.00 0.00 0.00 0.00 150.00 0.00 0.00 0.00 0.00 0.00 44,467.00

0.00 0.00 0.00 0.00 0.00 (825.49) 37.77 0.00 0.00 (63.95) 0.00 0.00 (6,200.93)

10,288.56 0.00 14,424.70 26,469.80 (10,448.96) (7,546.20)

8,400.00 0.00 12,000.00 23,500.00 (12,000.00) 0.00

(1,888.56) 0.00 (2,424.70) (2,969.80) (1,551.04) 7,546.20

0.00 (5,595.97) 0.00 3,834.17 2,623.59 0.00 34,049.69

0.00 (6,600.00) 0.00 5,100.00 3,300.00 0.00 33,700.00

0.00 (1,004.03) 0.00 1,265.83 676.41 0.00 (349.69)

0.00 0.00 0.00

0.00 0.00 0.00

0.00 0.00 0.00

0.00 0.00 0.00

0.00 26.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 26.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

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

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

87,452.33 0.00 19,999.74 500.00 0.00 107,952.07 332,409.98 417,568.29

81,600.00 0.00 20,073.00 0.00 0.00 101,673.00 314,912.00 433,007.00

(5,852.33) 0.00 73.26 (500.00) 0.00 (6,279.07) (17,497.98) (15,438.71)

326,400.00 0.00 80,292.00 0.00 0.00 406,692.00 1,376,163.00 1,665,237.00

33,600.00 0.00 35,120.00 Based on actual usage. 106,000.00 Based on actual usage. (50,500.00) 40,840.00 Due to a credit from the water and sewer company from a broken meter that was over paid on in 2005. 0.00 (26,400.00) 0.00 20,400.00 9,820.00 0.00 168,880.00

Management Fees Management Fees-MRLL Property Legal Fees

0.00 0.00 (2,311.00)

0.00 0.00 0.00

Credit Card Fees Bank Charges Bank Adjustments Other Professional Fees Late Charges HOA Assessment Fees Contributions Fiduciary Fees Custodial Fees Thunder Expense Accounting Fees Total Management Expense

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (2,311.00)

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Property Taxes Franchise Tax Insurance Tax Consultants MIP Total Taxes & Insurance Total Operating Expenses NET OPERATING INCOME

27,200.00 0.00 6,691.59 0.00 0.00 33,891.59 107,036.38 149,305.12

27,200.00 0.00 6,691.00 0.00 0.00 33,891.00 108,300.00 142,571.00

Base Rent Stated Rent Office Rent Total Rent Expense

106,586.67 86,666.67 0.00 193,253.34

106,587.00 86,667.00 0.00 193,254.00

0.33 0.33 0.00 0.66

319,760.01 260,000.01 0.00 579,760.02

319,761.00 260,001.00 0.00 579,762.00

0.99 0.99 0.00 1.98

1,279,044.00 1,040,004.00 0.00 2,319,048.00

0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00

0.00 0.00 265.21 59.04 0.00 0.00 0.00 0.00 0.00 324.25

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 (265.21) (59.04) 0.00 0.00 0.00 0.00 0.00 (324.25)

1,510.50 0.00 305.62 59.04 0.00 0.00 0.00 0.00 0.00 1,875.16

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(1,510.50) 0.00 (305.62) (59.04) 0.00 0.00 0.00 0.00 0.00 (1,875.16)

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Exterior Rehab Interior Rehab HVAC Replacement Carpet & Floor Replacement

0.00 0.00 0.00 8,203.73

0.00 0.00 0.00 4,400.00

0.00 0.00 0.00 11,292.69

0.00 3,000.00 0.00 11,000.00

0.00 3,000.00 0.00 (292.69)

0.00 3,000.00 No need for work. 0.00 63,800.00

Refrigerators Dishwashers & Ranges Washers / Dryers Fire Alarm Replacement Other Capital Improvements Boiler Replacement Roof Replacement Total Capital Expenses

0.00 0.00 0.00 0.00 0.00 0.00 0.00 8,203.73

0.00 0.00 0.00 0.00 0.00 0.00 0.00 4,400.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 11,292.69

0.00 0.00 0.00 0.00 0.00 0.00 0.00 14,000.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,707.31

0.00 0.00 0.00 0.00 0.00 0.00 0.00 66,800.00 Explained above.

0.00 0.00 0.00 (52,476.20)

0.00 0.00 0.00 (55,083.00)

0.00 0.00 0.00 (175,359.58)

0.00 0.00 0.00 (160,755.00)

0.00 0.00 0.00 (14,604.58)

0.00 0.00 0.00 (720,611.00) Explained above.

Mortgage Interest Loan Fees Interest Expense Interest Expense Total Debt Service Partnership Legal Fees Partnership Accounting Fees Partnership Travel Partnership - Meals Partnership Fees - Other Partnership Expense Due Diligence Cost Dead Deal Cost Partnership Exp- Lease up Costs Total Partnership Expense

Casualty Losses Casualty Recovery Total Casualty Loss NET INCOME (LOSS)

0.00 0.00 2,311.00 reclass of legal fees, above, in Admin category 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,311.00 Explained above.

30,905.26 3,000.00 9,750.00 6,011.00

0.00 0.00 (0.59) 0.00 0.00 (0.59) 1,263.62 Explained above. 6,734.12 Explained above.

0.00 0.00 0.00 (3,803.73) Due to large number of turns needing carpet replacement, residents were charged when applicable many are due to age of carpet. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (3,803.73) Explained above. 0.00 0.00 0.00 2,606.80

Due to increased taxes.

Explained above. Explained above. Explained above.

Rental Guarantee

58,307.91 5,831.71

0.00 (55,083.00)

58,307.91 60,914.71

182,643.05 7,283.47

0.00 (160,755.00)

182,643.05 168,038.47

0.00 (720,611.00) Explained above.

USA Courtney Downs LeaseCo, LLC Cash Flow (Actual + Budget) Books = Accrual For the 12 Months Ending Dec 2006 Jan 2006 Actual

Account

Feb 2006 Actual

Mar 2006 Actual

Apr 2006 Reforecast

May 2006 Reforecast

Jun 2006 Reforecast

Jul 2006 Reforecast

Aug 2006 Reforecast

Sep 2006 Reforecast

Oct 2006 Reforecast

Nov 2006 Reforecast

Dec 2006 Reforecast

12 Month Total

$/ Unit 342

$/ Sq. Ft. 313,778

Revenue Gross Potential Rent - Vacancy - Concessions & Disc. - Other Write-offs & Adj. Total Rental Income

356,941 (50,457) (80,765) (5,393) 220,326

356,261 (41,504) (83,296) (4,621) 226,840

353,425 (32,721) (83,632) (13,129) 223,943

355,390 (31,811) (87,068) (6,085) 230,426

356,985 (28,559) (87,817) (6,085) 234,524

356,985 (28,559) (87,817) (6,085) 234,524

356,985 (21,419) (89,436) (6,085) 240,045

356,985 (28,559) (87,817) (6,085) 234,524

360,554 (32,450) (87,029) (6,085) 234,990

364,160 (36,416) (86,256) (6,085) 235,403

364,160 (40,058) (85,497) (6,085) 232,520

364,160 (40,058) (85,497) (6,085) 232,520

4,302,991 (412,571) (1,031,927) (77,907) 2,780,585

12,581.85 (1,206.35) (3,017.33) (227.80) 8,130.37

13.71 (1.31) (3.29) (0.25) 8.86

Other Income Total Revenue

26,619 246,945

19,852 246,692

32,398 256,342

20,445 250,871

20,445 254,969

20,445 254,969

20,445 260,490

20,445 254,969

20,445 255,435

20,445 255,848

20,445 252,965

20,445 252,965

262,874 3,043,459

768.64 8,899.00

0.84 9.70

31,314 4,125 10,172 2,824 484 2,095 15,018 17,811 1,732 34,178

27,779 1,829 7,867 1,468 2,348 (1,911) 14,773 10,978 605 39,883

25,751 4,155 8,790 6,877 2,996 750 20,876 5,261 (2,311) 33,892

24,299 3,030 6,885 8,500 3,095 4,140 14,885 14,200 0 33,891

24,299 4,030 6,845 8,800 2,345 8,140 15,549 17,050 0 33,891

37,759 3,030 5,860 8,800 2,345 3,640 15,049 16,295 0 33,891

24,299 3,375 7,885 8,800 4,645 3,640 16,670 16,295 0 33,891

20,239 4,330 5,860 8,700 2,345 3,640 17,049 16,295 0 33,891

24,299 3,030 5,860 8,200 2,295 6,640 15,067 16,655 0 33,891

24,299 3,030 6,385 7,900 13,595 4,640 15,084 16,590 0 33,891

24,299 3,030 5,860 7,500 2,295 4,640 15,469 10,900 0 33,891

37,759 3,030 6,885 7,500 2,295 2,395 14,969 10,900 0 33,891

326,395 40,024 85,155 85,869 41,083 42,449 190,459 169,230 26 412,971

954.37 117.03 248.99 251.08 120.13 124.12 556.90 494.82 0.08 1,207.52

1.04 0.13 0.27 0.27 0.13 0.14 0.61 0.54 0.00 1.32

Total Operating Exp. Net Operating Income

119,755 127,190

105,619 141,073

107,036 149,305

112,925 137,946

120,949 134,020

126,669 128,300

119,500 140,990

112,349 142,620

115,937 139,498

125,414 130,434

107,884 145,081

119,624 133,341

1,393,661 1,649,798

4,075.03 4,823.97

4.44 5.26

Rent Expense Partnership Expense Capital Expense

193,253 1,511 3,871

193,253 40 (782)

193,253 324 8,204

193,254 0 6,600

193,254 0 6,600

193,254 0 6,600

193,254 0 6,600

193,254 0 6,600

193,254 0 6,600

193,254 0 6,600

193,254 0 3,300

193,254 0 3,300

2,319,046 1,875 64,093

6,780.84 5.48 187.41

7.39 0.01 0.20

Cash Flow Frm Operations

(71,445)

(51,438)

(52,476)

(61,908)

(65,834)

(71,554)

(58,864)

(57,234)

(60,356)

(69,420)

(51,473)

(63,213)

(735,216)

(2,149.75)

(2.34)

66,280

58,055

58,308

42,301

0

0

0

54,510

60,031

59,565

59,152

16,742

474,944

Balance Sheet Adjustments Cash - Non Operating Accounts Accounts Receivable Prepaid Assets Escrow Deposits

792 9,672 372 (34,325)

(2,230) (940) (275) (34,325)

(4,698) (590) 86 (34,325)

0 0 0 34,875

0 0 0 (7,125)

0 0 0 (7,125)

0 0 0 (7,125)

0 0 0 (7,125)

0 0 0 19,275

0 0 0 (7,125)

0 0 0 (7,125)

0 0 0 (7,125)

(6,136) 8,141 183 (98,701)

Cash Increase (Decreae) From Assets

Operating Expenses Salary Expense Operating Expense Advertising Expense Make Ready Expense Maintenance Expense Service Expense Administrative Expense Utility Expense Management Expense Taxes & Insurance

Rent Guarantee

(23,489)

(37,770)

(39,527)

34,875

(7,125)

(7,125)

(7,125)

(7,125)

19,275

(7,125)

(7,125)

(7,125)

(96,512)

Accounts Payable Accrued Expenses Other Payables Notess Payable

(5,209) 34,702 1,398 0

4,548 17,279 6,448 (763)

22,679 26,292 1,789 (382)

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

22,017 78,272 9,635 (1,145)

Cash Increase (Decreae) From Liab.

30,890

27,511

50,377

0

0

0

0

0

0

0

0

0

108,779

NET CASH FLOW CUMM. NET CASH FLOW

2,236 29,014

(3,642) 25,372

16,682 42,054

15,268 57,322

(72,959) (15,637)

(78,679) (94,316)

(65,989) (160,305)

(9,849) (170,154)

18,950 (151,204)

(16,980) (168,184)

554 (167,630)

(53,596) (221,226)

(248,004)

$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

NET CASH FLOW

Jun 2006

Jul 2006

Aug 2006

Sep 2006

Oct 2006

Nov 2006

Dec 2006

CUMM. NET CASH FLOW

Units Sq. Ft. ### 384807 bayclub2 castlep cedar congress jackson lee rem ric parkside polo sat sweet trailapt vlgcrest walnut westo wind usacourt usawalcr

160 356 300 257 247 10 428 5 300 440 440 240 280 120 284 12 346 280 284

146,080 384,807 274,080 254,074 221,730 22,160 398,868 24,952 305,832 403,761 548,750 264,892 286,056 108,276 254,103 48,309 433,196 299,111 254,103

E47:

administrator: replacement reserve

F47:

administrator: replacement reserve

G47:

administrator: replacement reserve

H47:

administrator: replacement reserve

I47:

administrator: replacement reserve

J47:

administrator: replacement reserve

K47:

administrator: replacement reserve

L47:

administrator: replacement reserve

M47:

administrator: replacement reserve

Courtney Downs Apartments March-06 LEASING & OCCUPANCY NUMBER OF MOVE INS: NUMBER OF MOVE OUTS: NET FOR THE MONTH:

31 17 14

OCCUPIED/LEASED %:

92.6% 95.1%

SOURCE OF TRAFFIC: APTGUIDE.COM APARTMENT GUIDE YELLOW PAGES OTHER. NET FOR RENT RENT.NET LIVES IN AREA RESIDENT REFERRAL LOCATORS RENT.COM WALK-IN SINAGE WORD OF MOUTH TOTALS CLOSING RATIO:

INCOME THIS MONTH: INCOME LAST MONTH: DIFFERENCE:

$256,341.00 $246,692.09 $9,648.91

TOTAL # GARAGES # GARAGES OCCUPIED GARAGES OCCUPIED %;

120 115 96%

REASONS WHY PROSPECTS DID NOT LEASE: Traffic 0 10 0 20 0 5 12 6 8 0 0 6 7

Leased 0 3 0 7 0 1 6 5 4 0 0 4 1

74

31

* * * * * * * * * * * * * *

Job Transfer Restricted Pet Breed Future/No Availability/Waiting list Just started looking. Waiting for Home to Sell Current Lease to Expire Needs Ground Floor Moved Elsewhere Will return with roommate or spouse Realtor Looking for Client Undecided Employment pending House sale pending Rented at Competitor TOTALS

6 2 5 8 0 0 0 0 9 0 0 7 6 0 43

33%

MARKETING ACTIVITIES & SOURCES FOR THE MONTH * Received new flyers from apt guide and meet with local realtors with donuts and color flyers and special price sheets for short term leasing. * Updated all locators with new move in specials and price sheets took plates of sandwhichs to them for repeat business. * Took donuts to three local churches on Sundays to singles group with price sheets and new color flyers. * Updated all Internet adds with current pricing and specials.

* Took Cyntrix human resources manager donuts and goodie bag with price sheets and flyers for new employees, waiving all app fees for Cyntrix employees. * Meet with Lowes Manager and took goodie bag (candie and cups) with plate of deli sandwhiches, waiving app fee for all preferred employees for Lowes. * Took over cookies to local doctors and dentist offices with flyers and price sheets. * Meet with Inverness hotel and golf club human resources manager with deli sandwhiches and fresh baked cookies and took them new color flyers and price shee

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 $625 to $1095 and three bedrooms from $950 to $1275. Dove Valley is offering $150.00 Southwest gift certificiates for any look and lease. RESIDENT RETENTION: We are showing 13 renewals for the month of March at an averaage increase of $24.23. We have continued to discuss all options with residents to keep turnover to a minimum. 6- residents did not renew due to buying houses, 3-resident is moving out of town. INCIDENTS ON THE PROPERTY: Aptr #7103 had fire in apartment due to grease fire, partial flooding in two units due to sprinklers.

Apt #7202 had water heater pipes burst in outside patio closet due to joint failure.

MAINTENANCE:

MARKET READY UNITS COMPLETE PAINTS TOUCH UPS WORK ORDERS Pending Misc 0 Electrical 0 Punch 0 HVAC 0 Plumbing 0 Property Ext. 0 Appliances 0 Safety 0 Total 0 ROOF LEAKS PLUMBING LEAKS

ROUTINE REPLACEMENTS:

Completed 32 18 16 10 93 0 23 0 192

Number of: 16 7 9 192 0 32 18 16 10 93 0 23 0 192 0 0

REFRIGERATORS DISHWASHERS STOVES A/C COMPRESSORS CONDENSING UNITS WATER HEATERS ICE MAKERS GARBAGE DISPOSALS MICROWAVES CARPETS CEILING FANS TOILETS A/C FAN MOTORS COUNTER TOPS CABINETS RESURFACED KITCHEN BLINDS TUBS RESURFACED TUB TILES

CAPITAL IMPROVEMENTS IN PROGRESS: N/A in progress.

PROBLEM AREAS NEEDING ATTENTION: Colorado Scapes will be here on 04/04/2006 to replace or re-dig the water meter hole. Our spa heat exchange is out and the part for it is on order.

CURRENT STAFF: Manager Assistant Manager Leasing Consultant Leasing Consultant Maintenance Supervisor Assistant Maintenance Maintenance/ Grounds

Nancy Howland Beth McCall Wendy Gillan Temporary personnel. Gabriel Tellez Russell Briley Jorge Chavez and Jorge Bernal

ACCOMPLISHMENTS FOR THE MONTH: Accepted new contract for our landscaping, and picked out flowers for the spring season for planting in May. Had the property bidded for striping.

Number Replaced 0 0 0 0 0 0 0 0 0 4 0 0 0 0 0 17 0 0

Downs Apartments March-06

and flyers for new employees, waiving all app fees for Cyntrix employees. sandwhiches, waiving app fee for all preferred employees for Lowes.

hiches and fresh baked cookies and took them new color flyers and price sheets, we are waiving deposits for this group and app fees.

Apt. #

9104, 7302, 9105, 4105

9303-2, 4208-2, 7105-1, 2105-3, 12205-2, 13305-1, 10212-1, 10101-1, 9112-1, 9109-3.

Courtney downs RENTAL SCHEDULE

March-06

UNIT TYPE A1 A1V A2 B1 B1V C C1 C1V CV D DV E EV TOTAL

1BR 1BR 1BR 2BR 2BR 2BR 2BR 2BR 2BR 2BR 2BR 3BR 3BR

#UNITS 40 32 18 24 32 42 44 22 24 16 20 24 4 342

SIZE 704 704 910 808 808 977 1,030 1,030 977 1,030 1,030 1,140 1,140 917

TOTAL S/F 28,160 22,528 16,380 19,392 25,856 41,034 45,320 22,660 23,448 16,480 20,600 27,360 4,560

MKT RENT PER UNIT 830 860 935 895 925 1130 1150 1180 1150 1150 1180 1245 1255

313,778

$1,044

MKT RENT MONTHLY PER S/F GROSS 1.18 $33,200 1.22 $27,520 1.03 $16,830 1.11 $21,480 1.14 $29,600 1.16 $47,460 1.12 $50,600 1.15 $25,960 1.18 $27,600 1.12 $18,400 1.15 $23,600 1.09 $29,880 1.10 $5,020 $1.14

$357,150

ANNUAL GROSS $398,400 $330,240 $201,960 $257,760 $355,200 $569,520 $607,200 $311,520 $331,200 $220,800 $283,200 $358,560 $60,240 $4,285,800

EFFECTIVE CONCESSION RENTS* 775.00 775.00 825.00 795.00 795.00 799.00 850.00 850.00 799.00 850.00 850.00 1,035.00 1,035.00

CONCESSION PER UNIT 55.00 55.00 110.00 100.00 130.00 331.00 300.00 330.00 351.00 300.00 330.00 210.00 220.00

847 * Net of Concessions

1.10 1.10 0.91 0.98 0.98 0.82 0.83 0.83 0.82 0.83 0.83 0.91 0.91

EFFECTIVE MONTHLY GROSS $31,000 $31,000 $14,850 $19,080 $25,440 $33,558 $37,400 $18,700 $19,176 $13,600 $17,000 $24,840 $4,140

0.92

$289,784

EFFECTIVE PER S/F

Vacants

Vacants Leased

Notice

Notice Leased

Net Available

7 0 4 5 0 6 5 0 0 6 0 0 0

3 0 1 0 0 1 2 0 0 0 0 4 0

0 0 0 0 0 1 0 0 0 0 0 0 0

0 0 0 3 0 1 2 0 0 1 0 1 0

7 0 4 5 0 7 5 0 0 6 0 0 0

33

11

1

8

34

MARKET SURVEY Courtney Downs March-06 Apartment Name

Courtney Downs

Brookside Village

Carriage Place

Coyote Ranch

Windsor @ Meridian

Address Phone Location # of units Age of Property Application Fee Credit Card Pets Allowed Pet Deposit Sec. Deposit W/D included Covered Parking Garage Cable Tennis Courts # of pools Weight Room Jacuzzi Ceiling Fans Microwaves Mini Blinds FF Freezer Icemakers Fireplaces Access Gates Alarm in Unit Door to Door Aerobics/Kick Box Movie Room Computer Library Indoor Basketball Water Charge

15849 E. Jamison Dr 720-870-6114 Englewood, Co 342 3 $50.00 yes yes 300 n/r 300-1500 Yes no Detached Yes no 1 yes yes yes yes yes yes yes yes no Prewired no no no yes no yes

5400 S Park Terrace 303-220-7086 Greenwood Village, Co 304 7 $30.00 yes yes. 225-375 300-400 yes no yes yes no 1 yes yes yes yes yes yes no yes no no yes no yes yes no yes

4900 S Ulster 303-740-7011 Denver, Co 80237 331 7 $40.00 yes yes 350-500 275 yes no yes yes yes 2 yes 2 yes yes yes yes yes yes yes yes no no yes yes no yes

16363 E Freemont Ave 303-693-8787 Aurora, Co 507 3 $35.00 yes yes 400-500 275-325 yes yes yes yes no 1 yes 1 yes yes yes yes yes no yes no no no yes yes no no

9875 Jefferson Pkwy 303-256-7700 Englewood, Co 80112 653 6 $40.00 yes yes 150-300 300 Only In Select Units yes yes yes no 1 yes 1 yes yes yes yes yes yes yes yes no no yes yes no yes

Pinnacle @ the Creek Greenbriar @ Saddle Rock

6107 S Parker Rd 303-766-2500 Centennial, Co 216 3 $35.00 yes yes 200-300 100 Only Select Units yes yes yes no 1 yes 1 yes yes yes yes yes yes no yes no no yes yes no yes

22159 E Ontario Dr 303-617-6600 Aurora, Co 250 3 $35.00 yes yes 400 250-400 no yes yes yes no 1 yes 1 yes yes yes yes yes yes no no no no no yes no yes

Dove Valley

7550 S Blackhawk 303-362-2000 Englewood, Co 80112 312 4 $35.00 yes yes 300-500 199 no yes yes yes yes 1 yes 1 yes yes yes yes yes yes yes yes no no yes yes no yes

Cherrywood Village

16950 E Carlson Dr 303-805-7220 Parker, Co 80134 380 3 $35.00 yes yes 400 99 no yes yes yes yes 2 yes 2 yes yes yes yes yes yes yes no no no yes yes no yes

Reserve @ South Creek

15611 E Jamison Dr 303-680-6696 Englewood, Co 80112 168 4 $40.00 yes yes 300-600 225-375 no yes yes yes yes 1 yes 1 yes yes yes yes yes yes yes yes no no yes yes no yes

MARKET SURVEY Courtney downs March-06

PROPERTY:

Courtney Downs Apt PRICE

Efficiency Efficiency 1B1B (A) 1B1B (B) 1B1B w/study 1B 1B 1B w/loft 1B1B w/study 2B2B (E) 2B2B (F) 2B2B (G) 2B2B (H) 2B2B 2B w/study 2B2B TH 2B2B TH 3B2B 3B2B

SIZE

Brookside Village

PSF

PRICE

SIZE

850 975

Carriage Place

PSF

812 815

PRICE

1.05 1.20

SIZE

1030 1065

776 785

Windsor at Meridian

Coyte Ranch

PSF

PRICE

1.33 1.36

SIZE

855 955

PSF

779 853

PRICE

1.10 1.12

SIZE

Pinnacle @ the CreekGreenbriar@Saddle Rock

PSF

PRICE

SIZE

PSF

PRICE

830 895

704 808

1.18 1.11

640 645

627 701

1.02 0.92

620 660

685 705

0.91 0.94

935

910

1.03

740

811

0.91

730

760

0.96

835 1110

956 1044

0.87 1.06

910

1051

930

1120

0.87 0.83

1,130

977

1.16

1140

1130

1.01

1265

1141

1.11

1160

1105

1.05

1,150 1,150

1030 1030

1.12 1.12

1155

1144

1.01

1460

1237

1.18

1250

1192

1.05

1440 1030

1196 1180

1.20 0.87

1,235

1140

1.08

1600

1485

1.08

1265 1645

1141 1414

1.11 1.16

1350

1398

0.97

1510

1330

1.13

995

1230

0.87

Dove Valley

SIZE

785 880

PSF

707 853

PRICE

1.11 1.03

SIZE

795 825

PSF

768 842

PRICE

1.04 0.98

Cherrywood Village SIZE PSF

850

707

Reserve@South Creek SIZE PSF

PRICE

1.20

795

763

1.04

995

1037

0.96

1195

1257

0.95

1075

1033

1.04

1040

1115

0.93

1110

1033

1.07

1195

1093

1.09

1090

12220

0.09

1190

1093

1.09

1.15

1270

1356

0.94

1375

1235

1.11

1425

1235

% occ /leased 92.6 95% 97 96% 98.00% 98% 91.3 96% 0 0% 91 94% 92 93% 96 93% 90 93% 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 $1,144 $1,288 $1,114 $994 $808 $1,072 $1,004 1131.25 995.00 Units(Total / Avail) 342 9 304 11 331 5 507 20 653 216 8 292 22 312 8 360 41 0 168 5 Rates Special: 1-4 months off selected Special: units. $100 off 11-12 mo Special: leases. $150-$200 off market Special: on 12$200-300 mo lease.off market Sepcial:None 12 mo lease. Special: waive deposits andSpecial: administration $150 tofees. $200 off per Special:$250-$275 mo on 12 mo leases. off market. Special: 3 Months off of market Special: waive application or waive deposits. reflect these rates: $685 1/1 $805 2/2 $1310 3/2 $150 giftcertificate to $626 1/1 $800 2/2 $1275 3/2 specials: special were pulled off the internet southwest airlines w/ look and lease 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.