Kings Highway 8 Units 1202 Kings Highway, Dallas, TX

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1 NOTICE: Tenants and management are not aware of sale. Do not go on-site without Broker. Kings Highway 8 Units 1202 Kings Highway, Dallas, TX Exclusively Represented by Joe Lumbley JP Lumbley & Associates, LLC Dallas TX All information herein has been secured from sources we believe to be reliable but we make no warranties, express or implied, as to the accuracy of the information. References to square footage, age, condition, and financials of the property are approximate and have not been verified. All parties must personally verify all information presented herein and must exercise due diligence in this research. Buyers must bear all responsibility and liability for verifying and acting upon any information contained herein.

2 Location The property is located in the North Oak Cliff area of Dallas, which is an area of older homes, historical districts, and extensive renovations. This property is located in a historical district called the Kings Highway Historical District. This district sits just north of the oldest and most successful historic district in Oak Cliff, Winnetka Heights. We are seeing Winnetka Heights residential transactions occur at higher per-square-foot prices than in the newer suburbs such as Plano, Allen, and Frisco. Just north of the Kings Highway Historical District is the old-money section of Oak Cliff, Kessler Park. Kessler has some of the most beautiful homes in Dallas, comparable to University Park and Highland Park in quality, but significantly less in price. A million dollar home in Kessler would probably be three million in University Park. Within a two-mile radius of the property are several new and newly-announced developments: Renaissance on the Lake (Cliff Towers): $25 million redo of an old historic hotel Jefferson at Kessler: over 600 units of AAA+ apartment development, priced at nearly $100,000 per unit Burnett Field: An announced 200+ unit luxury in-town development by First Worthing Colorado Blvd widening: A $3 million widening and enhancement of the major E/W artery through the area (one block north) Bishop Arts District: Lofts, restaurants, shopping. This district has 3 of the top 100 restaurants in Dallas Jefferson Avenue District: Old main shopping boulevard in Oak Cliff. Home to the Texas Theater, where Lee Harvey Oswald was captured. Five Historic Districts: Lake Cliff, Kidd Springs, Winnetka Heights, Bishop Arts, and Kings Highway

3 The Property This 8-unit has been completely remodeled over the eight-years that the current owner has owned it. It has separate meters for electricity. All interiors have been completely redone, with new kitchens, baths, carpet, tile, and paint. Bathrooms have had the windows replaced with glass bricks. It's located on a corner lot on Kings Highway, less than a block from the legendary Norma's Café, an Oak Cliff culinary landmark. Most of the homes and apartment buildings on Kings Highway have been fully restored. This area is the absolute center of restoration in Oak Cliff. A quarter-mile to the northwest is the beautiful Stevens Park Golf Course, one of the most beautiful courses in Dallas. Located on some of the only hilly terrain in all of Dallas, this area is some of the most attractive real estate in all of Dallas.

4 Income Property Analysis System Version 2.20 Kings Highway 8 plex Rental Property Information and Financials Property Name Address Kings Highway 8 plex Kings Hiwhway Historical District # of Units 8 Square Footage 4640 Current Market Value Purchase Price Down Payment Closing Costs 7000 Expected Appreciation (%) 3.00% Percentage of price to depreciate as improvements (%) 90.00% Rental Income Gross Monthly Receipts 4400 Expected Vacancy Rate (%) 5.00% Other Monthly Income 100 Annual Rent Increase (%) 4.00% Annual Operating Expenses Repair and Maintenance 0 Property Management 0 Salary and Wages 0 Property Taxes 0 Insurance 0 Professional Services 0 Water/Sewer/Garbage 0 Utilities 0 Advertising 0 Office Supplies 0 Estimated Expenses $4.75 per square foot Total Expenses Operating Cost Increase (%) 2.00% Expenses per SF 4.75 Expenses per Unit 2755

5 Unit Breakdown #Units Description Size SF Rent Total SF Total Rent Rent/SF 8 Efficiencies Totals Pricing Options Total Pricing Options: Per Unit Per SF GRM Cap Rate Est. Expenses 4.75 Estimated Expenses Per Unit Per SF Mortgages First Second Third Other Mortgage Principal Amortization Term (Months) Annual Interest Rate (%) 6.50% 0.00% 0.00% 0.00% Monthly Payment $2,123 $0 $0 $0 Annual Payment $25,480 $0 $0 $0 Tax Information Federal Tax Rate (%) 30.00% State Tax Rate (%) 0.00% Long-term Capital Gains Rate (%) 15.00%

6 Quick Investment Summary Kings Highway 8 plex Purchase Data Property Price $325,000 Down Payment $81,250 Closing Costs $7,000 Total Acquisition Cost $332,000 Total Cash Invested $88,250 Precentage Down 24.47% Property Data # of Units 8 Square Footage 4640 Cost per Unit $40, Cost per Square Foot $70.04 Value Data Gross Rent Multiple 6.02 Capitalization Rate 9.02% Property Profit & Loss Scheduled Annual Income $54,000 Annual Vacancy -$2,640 Actual Annual Gross Income $51,360 Annual Expenses -$22,040 Annual Net Operating Income $29,320 Annual Debt Service -$25,480 Net Annual Cashflow before Taxes $3,840 Net Annual Cashflow per unit before Taxes $ Net Monthly Cashflow per unit before Taxes $40.00 Average Rent per Unit $ Average Rent per Sqare Foot $0.97 This analysis is based upon obtaining new financing for $325,000 (75% LTV) at a 6.5% rate, amortized over 15 years (180 months). We have two local banks that have recently offered similar financing on North Oak Cliff properties.

7 5-year Financial Statement Years 1-5 Kings Highway 8 plex Year Scheduled Gross Income 54,000 56,156 58,398 60,730 63,155 Vacancy -2,640-2,748-2,860-2,977-3,098 Operating Expenses -22,040-22,481-22,930-23,389-23,857 NET OPERATING INCOME 29,320 30,927 32,608 34,365 36,201 Depreciation -10,636-10,636-10,636-10,636-10,636 Mortgage Interest -15,551-14,886-14,177-13,420-12,612 TAXABLE INCOME 3,132 5,405 7,795 10,308 12,952 Net Operating Income 29,320 30,927 32,608 34,365 36,201 Debt Service -25,480-25,480-25,480-25,480-25,480 Pre-Tax Cash Flow 3,840 5,448 7,128 8,885 10,721 Pre-Tax Rate of Return 4.35% 6.17% 8.08% 10.07% 12.15% Income Taxes ,621-2,338-3,092-3,886 After-Tax NET CASH FLOW 2,900 3,826 4,790 5,792 6,835 After-Tax Cash-on-cash Return 3.29% 4.34% 5.43% 6.56% 7.75% Net Cash Flow 2,900 3,826 4,790 5,792 6,835 Equity Buildup 9,928 10,593 11,303 12,060 12,867 Appreciation 9,750 10,043 10,344 10,654 10,974 Tax Savings Net Cash Flow per Unit After-Tax Total Annual Return 22,579 24,462 26,436 28,506 30,677 After-Tax Return on Cash 25.59% 27.72% 29.96% 32.30% 34.76% Investment Analysis Dollars 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, Year NET OPERATING INCOME TAXABLE INCOME After-Tax NET CASH FLOW After-Tax Total Annual Return