EVANSVILLE RENTAL HOUSE PORTFOLIO

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1 EVANSVILLE RENTAL HOUSE April 7, 2016 Justin Long (812) Washington Ave, Suite 1, Evansville IN,

2 SINGLE FAMILY RENTAL HOME 2 SUMMARY This housing portfolio is a significant investment opportunity for a long term hold strategy. The portfolio is held and managed by AMA Estates. All nine homes in the portfolio are preforming at a percent CAP rate, and have been professionally leased up and managed since the properties have been acquired. This is an opportunity for an investor to buy and hold and eventually sell off homes at a lower CAP rate over time. Either strategy yields a significant upside. The housing portfolio is currently 100 percent occupied. Many units have been occupied by the same tenant for several years. The portfolio is comprised of mostly two bedroom one bathroom homes renting from 600 to 750 dollars per month. The remainder of the portfolio is comprised of one, three, and four bedroom units with rents capping out at 915 dollars per month. The rents in this portfolio are currently out preforming similar homes in the same immediate area. Renting remains a strong market in the Evansville area with significant shortages in multi-family complexes. Similarly, home ownership remains stagnant with fewer new home buyers. The market is strong for families, and second home buyers, however first time buyers are renting longer than in pre 2008 housing conditions. This portfolio should remain strong going forward requiring little capital expenditure. The portfolio was previously owned by a reputable management company and has had a strong record of good tenants. Given current market trends, outside factors like the I.U. Medical Campus locating in Evansville, and the quality of this portfolio, maintaining a high CAP rate and return structure should be attainable if properly managed. This report contains all of the operational data and forecasting information needed to support the CAP rate, revenue, and expenditure projections. For further information please contact listing broker: Jusitn Long (812) jlong@hahnkiefer.com Disclaimer This information was obtained from sources we consider reliable. We cannot be responsible however, for errors, omissions, prior sales or leases, withdrawal from the market or change in price.

3 No. of Units Unit Type Total SF Approx. Square Feet/Unit Average Rents Rent/SF Monthly Income Market Rents Rent/SF Proforma Montly Income 1 1 Bed 1 Bath $595 $0.93 $595 $550 $0.86 $ Bed 1 Bath 3, $714 $0.73 $2,720 $600 $0.62 $2, Bed 1 Bath 2,104 1,052 $562 $0.53 $1,664 $650 $0.62 $1, Bed 2 Bath 3,601 1,801 $723 $0.40 $1,445 $700 $0.39 $1,445 Average Price Per Square Foot $0.65 $ Total /Wtd Avg 10,238 $6,424 $6,424 3

4 SINGLE FAMILY RENTAL HOME UNIT MIX & SUMMARY Unit Status Unit Count Percent Physically Occupied Units 9 100% Available Units 0 0% Total / Percentage 9 100% Occupied with Lease Units 9 100% Available Units 0 0% Model Units 0 0% Employee Units 0 0% Total / Percentage 9 100% 35% 21% Unit Mix Occupancy 6% 38% 1 Bed 1 Bath 2 Bed 1 Bath 3 Bed 1 Bath 4 Bed 2 Bath 0% 100% Physically Occupied Units Available Units No. of Units Unit Type Total SF Approx. Square Feet/Unit Average Rents Rent/SF Monthly Income Market Rents Rent/SF Proforma Montly Income 1 1 Bed 1 Bath $595 $0.93 $595 $550 $0.86 $ Bed 1 Bath 3, $714 $0.73 $2,720 $600 $0.62 $2, Bed 1 Bath 2,104 1,052 $562 $0.53 $1,664 $650 $0.62 $1, Bed 2 Bath 3,601 1,801 $723 $0.40 $1,445 $700 $0.39 $1,445 Average Price Per Square Foot $0.65 $ Total /Wtd Avg 10,238 $6,424 $6,424 4

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6 SINGLE FAMILY RENTAL HOME 6 FINANCIAL SUMMARY & INCOME BREAKDOWN EXPENSES Real Estate Taxes $13,887 $13,887 Insurance $5,531 $5,531 Maintenance & Repairs $4,050 $4,050 Reserves $0 $0 TOTAL EXPENSES $23,468 $23,468 EXPENSES PER UNIT $ $469 EXPENSES PER SQUARE FOOT $2.29 $2.29 ANNUAL OPERATING DATA SUMMARY CURRENT PROFORMA Gross Potential Rent $78,708 $78,708 Other Income $0 $0 Gross Potential Income $78,708 $78,708 Less: Vacancy/Deduction (GPR) 0% $0 0% $0 Effective Gross Income $78,708 $78,708 Less: Expenses $23,468 $23,468 Net Operating Income $55,240 $55,240 Annual Debt Service $34,954 $34,954 Debt Service Coverage Ratio Net Cash After Debt Service $20,286 $20,286 Cash-on-Cash Return 18.04% 18.04%

7 26% 23% Monthly Income 9% 1 Bed 1 Bath 2 Bed 1 Bath 3 Bed 1 Bath 4 Bed 2 Bath 42% Total Number of Units 9 Total Rentable Square Feet 10,238 PROPOSED FINANCING Loan Amount $420, Loan Type New Interest Rate 6.00% Amoritzation (Years) 20 Annual Debt Service $ 34, Price $526, Down 20% $105, Number of Units 9 Net Operating Income $55, Proforma Net Operating Income $55, Price / Unit $58, Rentable Square Feet 10,238 Price/Square Feet $51.39 Cap Rate - Current 10.50% Cap Rate - Pro Forma 10.50% GRM - Current 9.52 GRM - Pro Forma 9.52 Income Current Per Unit Proforma Per Unit Gross Potential Rent $78,708 $ 8, $78,708 $8, Other Income Application Fees $0 $0 $0 $0 Pet Fees $0 $0 $0 $0 Lease Premium $0 $0 $0 $0 Collections Rent & Damages $0 $0 $0 $0 Late Fees $0 $0 $0 $0 Total Other Income $0 $0 $0 $0 Gross Potential Income $78,708 $8, $78,708 $8,745 Vacancy/Collection Allowance 0% $0 $0 0% $0 $0 Concessions $0 $0 $0 $0 Loss to Lease - Model $0 $0 $0 $0 Effective Gross Income $78,708 $1, $78,708 $1,574 7

8 SINGLE FAMILY RENTAL HOME RENT ROLL Unit Number Unit Type Unit Size Current Rent Rent Per SF Proforma Rent Rent Per SF 2405 Jeanette Ave 1 Bed 1 Bath 632 $595 $0.94 $595 $ Hercules 2 Bed 1 Bath 780 $670 $0.86 $670 $ N Kerth Ave 2 Bed 1 Bath 768 $650 $0.85 $650 $ Pollack 2 Bed 1 Bath 917 $914 $1.00 $914 $ N Garvin St 2 Bed 1 Bath 1436 $650 $0.45 $650 $ Chadwick Rd 3 Bed 1 Bath 952 $750 $0.79 $750 $ Covert Ave 3 Bed 1 Bath 1152 $750 $0.65 $750 $ N Elliot 4 Bed 2 Bath 1566 $695 $0.44 $695 $ E Powell 4 Bed 2 Bath 2035 $750 $0.37 $750 $0.37 Total 10,238 $6,424 $6,424 8

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