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Appendix B
EPIC ASSOCIATES 84-III
Schedule D-–Pro Forma
Cash-Flow and Taxable Income (Loss) Analysis
October 1, 1983 Through December 31, 1987
Application of funds 1983 1984 1985 1986 1987 Total
Annual cash-flow
Gross rental income from individuals $83,640 $294,341 $315,619 $338,435 $362,901 $1,394,936
Less: Rental commissions 5,305 27,885 25,250 27,075 29,032 114,547
Vacancy -0- 69,169 37,874 40,612 43,548 191,203
Net rental income from individuals1 78,335 197,287 252,495 270,748 290,321 1,089,186
Interest income on partnership funds
Lent to EPIC 5,937 6,888 -0- -0- -0- 12,824
Less: First mortgage payments2 128,155 504,374 502,217 502,217 502,217 2,139,182
Interest expenses on funds lent by
EPIC to the partnership3 -0- 2,325 24,056 53,197 80,733 160,312
Taxes 20,003 73,836 79,274 85,004 91,149 349,266
Insurance 3,620 10,705 9,299 9,972 10,693 44,289
Home owner association dues 333 2,069 4,359 4,674 5,012 16,446
Audit fees 1,250 4,986 4,946 4,946 4,946 21,074
Maintenance and repairs4 10,225 49,170 21,597 23,158 24,832 139,359
Miscellaneous 5,444 -0- -0- -0- -0- 5,444
Property administration fee 8,250 33,000 33,000 33,000 33,000 140,250
Net cash-flow from operations -103,384 -476,291 -426,253 -445,421 -462,262 -1,913,611
Taxable income (loss) analysis
Net cash-flow from operations -103,384 -476,291 -426,253 -445,421 462,262 -1,913,611
Less: Depreciation 42,686 170,741 170,742 170,742 170,742 725,653
Amortization of mortgage loan fee 3,453 13,814 13,814 13,814 13,814 58,709
Net taxable income -149,524 -660,846 -610,809 -629,976 -646,818 -2,697,972
1 The year 1983 and the first three quarters of 1984 contain actual operating history; thereafter, it is assumed that the
rent will increase 7 percent per year. During the period that the properties are assumed to be rented to individual tenants,
projected income is reduced by 8 percent to allow for rental commissions and 12 percent yearly to allow for vacancies.
2 Loan payments are not expected to increase during this period.
3 Fifteen percent per year on net advances by EPIC to the partnership. The amount decreases at the beginning of each
quarter by the amount of the quarterly investment minus the Organization Fee. It increases during the year by the amount of
the negative cash-flow. To the extent EPIC owes the Partnership money, interest will be paid at 12 percent per year.
4 It is assumed that these expenses will amount to 0.5 percent per year of current property value.
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