Epic Associates 84-III, William C. Griffith, Jr. - Page 92




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             percent.  We refer to this payment as the rental deficit                 
             contribution.                                                            
                  The rental purchase agreement also provided, as a                   
             condition to the purchaser's obligation to purchase the                  
             properties, that the "purchaser shall have obtained an                   
             appraisal of each of the Properties by a FNMA/FHLMC                      
             qualified appraiser * * * which shall reflect the value                  
             of each Property equal to or greater than the purchase                   
             price applicable to that Property".                                      
                  EPIC made the following internal cash-flow analysis                 
             of the transaction with Fox & Jacobs:                                    

             Fox & Jacobs, Inc.              Year 1        Year 2      Year 3       Year 4Total         
             Builder lease payments  -0-      -0-     -0-      -0-      -0-           
             Tax, ins., HOA reimburse-0-      -0-     -0-      -0-      -0-           
             Tenant rental           $48,740  $49,659 $53,632  $57,922  $209,953      
             Rental deficit contribution69,190   -0-     -0-      -0-      69,190        
             Interest income         6,556    3,935    1,312   -0-      11,803        
                                                                                     
             Total revenue           124,486  53,594  54,944   57,922   290,946       
             First trust interest    -62,922  -62,922     -62,922-62,922     -251,688   
             Tax, ins., HOA expense  -7,920   -7,920  -7,920   -7,920   -31,680       
             Repairs & maintenance   -2,247   -2,247  -2,247   -2,247   -8,988        
             Property management fee -562     -562    -562     -562     -2,248        
             Audit fee               -3,360   -3,360  -3,360   -3,360   -13,440       
             Interest on EPIC advances-5,815   -5,815   -5,815  -5,815   -23,260       
             Total expenses          -82,826  -82,826 -82,826  -82,826     -331,304   
             Anticipated cash deficit41,660   -29,232 -27,882  -24,904  -40,358       
             As a percent of purchase9.27     -6.5    -6.2     -5.54    -8.98         
             price--check Nos.                                                        

                  The above analysis is based upon the original plan to               
             purchase eight houses for $449,500.  As shown above, EPIC                
             projected a cash deficit from that transaction at the end                
             of the fourth year of $40,358 or 8.98 percent of the                     





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