MAGNOLIA POINT APARTMENTS

MAGNOLIA POINT APARTMENTS 4901 Tanner Street Moss Point, MS 39532 For more information contact: B-13469 CLICK HERE FOR DRONE VIDEO. $800.000.00 60 Duplexes, One Office warehouse, for around $13,333 per door! 11.15 Acres...plenty of room to build! Land can be platted and duplexes can be sold separately $800,000 to buy, plus $416,000 in repairs could yield a 27% return Cement block construction, Government constructed Phone: Fax: (228) 284-4433 2598 Pass Road, STE B Biloxi, MS 39531 www.getsomeequity.com

PROPERTY DESCRIPTION 60 Duplexes and an Office are comprised of 61 cement block buildings (60 duplex units and one office and warehouse building) on 11.1 acres, zoned R-2. Magnolia Point was built originally in the mid 1950's and operated as public housing for decades under the state. The complex was sold to the public in 2006, and in 2013, the renovation of the entire complex began, bringing the number of total renovated units to 28. It is estimated cost for renovating the remaining 32 units is approximately $416,000, or $13,000 per door. 1 Bedrooms/1 Bath 10 Units 644 Sq. Ft. 2 Bedrooms/1 Bath 28 Units 814 Sq. Ft. 3 Bedrooms/1 Bath 18 Units 1,129 Sq. Ft. 4 Bedrooms/1 Bath 4 Units 1,289 Sq. Ft. Page 2

INVESTMENT DETAILS ANALYSIS Analysis Date August 2018 PROPERTY Property Property Address 4901 Tanner Street Moss Point, MS 39532 Year Built 1959 PURCHASE INFORMATION Property Type MultiFamily Purchase Price $800,000 Fair Market Value $800,000 Units 60 Total Rentable Sq. Ft. 54,710 Resale Valuation 3.0% (annual appreciation) Resale Expenses 10.0% FINANCIAL INFORMATION Down Payment $200,000 LT Capital Gain 15.00% Federal Tax Rate 28.0% State Tax Rate 7.5% Discount Rate 6.00% LOANS Type Debt Term Amortization Rate Payment LO Costs Fixed $600,000 15 years 15 years 6% $5,063 Fixed $416,000 15 years 15 years 6.0% $3,510 INCOME & EXPENSES Gross Operating Income $112,028 Monthly GOI $9,336 Total Annual Expenses ($49,479) Monthly Expenses ($4,123) Page 3

UNIT RENT ROLL Unit Description Approx. Sq. Ft. Current Rent Pro Forma Rent Comments 1 1+1 Rehabbed 644 $400 $400 2 1+1 Rehabbed 644 $400 $400 3 1+1 Rehabbed 644 $400 $400 4 1+1 Rehabbed 644 $400 $400 5 1+1 Rehabbed 644 $400 $400 6 1+1 Rehabbed 644 $400 $400 7 1+1 Not 644 $0 $400 8 1+1 Not 644 $0 $400 9 1+1 Not 644 $0 $400 10 1+1 Not 644 $0 $400 11 2+1 Rehabbed 814 $450 $425 12 2+1 Rehabbed 814 $425 $425 13 2+1 Rehabbed 814 $450 $425 14 2+1 Rehabbed 814 $425 $425 15 2+1 Rehabbed 814 $425 $425 16 2+1 Rehabbed 814 $450 $425 17 2+1 Rehabbed 814 $447 $425 18 2+1 Rehabbed 814 $0 $425 19 2+1 Rehabbed 814 $0 $425 20 2+1 Rehabbed 814 $0 $425 21 2+1 Not 814 $0 $425 22 2+1 Not 814 $0 $425 23 2+1 Not 814 $0 $425 24 2+1 Not 814 $0 $425 25 2+1 Not 814 $0 $425 26 2+1 Not 814 $0 $425 27 2+1 Not 814 $0 $425 28 2+1 Not 814 $0 $425 29 2+1 Not 814 $0 $425 30 2+1 Not 814 $0 $425 31 2+1 Not 814 $0 $425 32 2+1 Not 814 $0 $425 33 2+1 Not 814 $0 $425 34 2+1 Not 814 $0 $425 Page 4

UNIT RENT ROLL Unit Description Approx. Sq. Ft. Current Rent Pro Forma Rent Comments 35 2+1 Not 814 $0 $425 36 2+1 Not 814 $0 $425 37 2+1 Not 814 $0 $425 38 2+1 Not 814 $0 $425 39 3+1 Rehabbed 1,129 $500 $500 40 3+1 Rehabbed 1,129 $500 $500 41 3+1 Rehabbed 1,129 $500 $500 42 3+1 Rehabbed 1,129 $500 $500 43 3+1 Rehabbed 1,129 $500 $500 44 3+1 Rehabbed 1,129 $500 $500 45 3+1 Rehabbed 1,129 $0 $500 46 3+1 Rehabbed 1,129 $0 $500 47 3+1 Rehabbed 1,129 $0 $500 48 3+1 Not 1,129 $0 $500 49 3+1 Not 1,129 $0 $500 50 3+1 Not 1,129 $0 $500 51 3+1 Not 1,129 $0 $500 52 3+1 Not 1,129 $0 $500 53 3+1 Not 1,129 $0 $500 54 3+1 Not 1,129 $0 $500 55 3+1 Not 1,129 $0 $500 56 3+1 Not 1,129 $0 $500 57 4+1 Rehabbed 1,289 $650 $650 58 4+1 Rehabbed 1,289 $705 $705 59 4+1 Rehabbed 1,289 $0 $725 60 4+1 Not 1,289 $0 $725 Page 5

PROPERTY PHOTOS Before and After Pictures Kitchen Rehab Bathroom Rehab Bed Room after Painting Page 6

PRO FORMA SUMMARY INCOME Description Actual Per Unit Pro-Forma Per Unit Gross Potential Rent $117,924 $1,965 $332,460 $5,541 Less: Vacancy ($5,896) ($98) ($16,623) ($277) Effective Gross Income $112,028 $1,867 $315,837 $5,264 OPERATING EXPENSES Description Actual Per Unit Pro-Forma Per Unit Property Management Fee $11,203 $187 $33,246 $554 Insurance Property $6,135 $102 $12,630 $211 Insurance Flood $1,764 $29 $3,528 $59 Property Tax $12,420 $207 $12,420 $207 Electric $1,631 $27 $3,262 $54 Water $7,926 $132 $15,852 $264 Maintenance @ $300/door $8,400 $140 $18,000 $300 Total Expenses ($49,479) ($825) ($98,938) ($1,649) NET OPERATING INCOME $62,549 $1,042 $216,899 $3,615 Page 7

PRO FORMA SUMMARY UNIT MIX & ANNUAL SCHEDULED INCOME Type Units Actual Total Pro-Forma Total 1+1 Not Rehabbed 4 $0 $0 $4,800 $19,200 1+1 Rehabbed 6 $4,800 $28,800 $4,800 $28,800 2+1 NotRehabbed 18 $0 $0 $5,100 $91,800 2+1 Rehabbed 10 $3,686 $36,864 $5,100 $51,000 3+1 Not Rehabbed 9 $0 $0 $6,000 $54,000 3+1 Rehabbed 9 $4,000 $36,000 $6,000 $54,000 4+1 Not Rehabbed 1 $0 $0 $8,700 $8,700 4+1 Rehabbed 3 $5,420 $16,260 $8,320 $24,960 TOTALS 60 $117,924 $332,460 INVESTMENT SUMMARY Price: $800,000 Year Built: 1959 Units: 60 Price/Unit: $13,333 RSF: 54,710 Price/RSF: $14.62 Lot Size: 11.10 acres Floors: 1 Parking Spaces:.91 APN: 22405002.50 Cap Rate: 7.82% Pro-Forma Cap Rate: 27.11% GRM: 6.78 Pro-Forma GRM: 2.41 FINANCING SUMMARY Loan Amount: $600,000 Down Payment: $200,000 Loan Type: Fixed Interest Rate: 6% Term: 15 years Monthly Payment: $5,063 DCR:.61 ANNUALIZED INCOME Description Actual Pro-Forma Gross Potential Rent $117,924 $332,460 Less: Vacancy ($5,896) ($16,623) Effective Gross Income $112,028 $315,837 Less: Expenses ($49,479) ($98,938) Net Operating Income $62,549 $216,899 Debt Service ($102,883) ($102,883) Net Cash Flow after Debt Service ($40,334) $114,016 Principal Reduction $43,095 $43,095 Total Return $2,761 $157,111 ANNUALIZED EXPENSES Description Actual Pro-Forma Property Management Fee $11,203 $33,246 Insurance Property $6,135 $12,630 Insurance Flood $1,764 $3,528 Property Tax $12,420 $12,420 Electric $1,631 $3,262 Water $7,926 $15,852 Maintenance @ $300/door $8,400 $18,000 Total Expenses $49,479 $98,938 Expenses Per RSF $0.90 $1.81 Expenses Per Unit $825 $1,649 -All 60 units renovated -Cost of renovation (32*13,000 =$416,000) 2nd loan Second Loan: $416,000 Loan Type: Fixed Interest Rate: 6% Term: 15 years Monthly Payment: $3,510 Page 8

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DEMOGRAPHICS Population 1 Mile 3 Mile 5 Mile Male 1,128 (48.23 %) 8,824 (48.49 %) 17,807 (49.68 %) Female 1,211 (51.77 %) 9,373 (51.51 %) 18,039 (50.32 %) Total Population 2,339 18,197 35,846 Age Breakdown 1 Mile 3 Mile 5 Mile Ages 0-4 181 (7.74 %) 1,233 (6.78 %) 2,256 (6.29 %) Ages 5-9 220 (9.41 %) 1,469 (8.07 %) 2,808 (7.83 %) Ages 10-14 187 (7.99 %) 1,312 (7.21 %) 2,583 (7.83 %) Ages 15-19 178 (7.61 %) 1,243 (6.83 %) 2,534 (7.07 %) Ages 20-24 194 (8.29 %) 1,302 (7.16 %) 2,587 (7.22 %) Ages 25-29 195 (8.34 %) 1,318 (7.24 %) 2,551 (7.12 %) Ages 30-34 185 (7.91 %) 1,276 (7.01 %) 2,500 (6.97 %) Ages 35-39 163 (6.97 %) 1,193 (6.56 %) 2,372 (6.62 %) Ages 40-44 142 (6.07 %) 1,109 (6.09 %) 2,268 (6.33 %) Ages 45-49 146 (6.24 %) 1,121 (6.16 %) 2,310 (6.44 %) Ages 50-54 146 (6.24 %) 1,134 (6.23 %) 2,261 (6.31 %) Ages 55-59 132 (5.64 %) 1,124 (6.18 %) 2,163 (6.03 %) Ages 60-64 113 (4.83 %) 1,031 (5.67 %) 1,947 (5.43 %) Ages 65-69 77 (3.29 %) 841 (4.62 %) 1,557 (4.34 %) Ages 70-74 39 (1.67 %) 593 (3.26 %) 1,134 (3.16 %) Ages 75-79 15 (0.64 %) 376 (2.07 %) 802 (2.24 %) Ages 80-84 6 (0.26 %) 210 (1.15 %) 482 (1.34 %) Ages 85+ 20 (0.86 %) 312 (1.71 %) 731 (2.04 %) Page 18

DEMOGRAPHICS Household Income 1 Mile 3 Mile 5 Mile Median Income $33,992 $33,992 $36,045 Less than $10,000 115 887 1,673 $10,000 -$14,999 115 614 1,118 $15,000 - $19,999 95 510 842 $20,000 -$24,999 41 460 942 $25,000 - $29,999 45 578 980 $30,000 - $34,999 66 463 862 $35,000 - $39,999 38 452 880 $40,000 - $44,999 88 411 778 $45,000 - $49,999 31 319 617 $50,000 - $59,999 36 560 1,177 $60,000 - $74,999 73 676 1,339 $75,000 - $99,999 83 635 1,272 $100,000 - $124,999 34 210 443 $125,000 - $149,999 N/A 80 338 $150,000 - $199,999 N/A 30 196 Greater than $200,000 N/A 64 197 Housing 1 Mile 3 Mile 5 Mile Housing Units 1,100 8,275 16,511 Occupied Units 917 6,981 13,892 Owner Occupied Units 575 4,509 8,772 Renter Occupied Units 342 2,472 5,120 Vacant Units 183 1,294 2,619 Race Demographics 1 Mile 3 Mile 5 Mile Population Non Hispanic White 116 4,621 16,360 Population Black 2,196 12,830 17,796 Population Am In/Ak Nat N/A 1 2 Page 19