- 21 -
Operating expenses per month $7,961
Tenant rental revenue -4,600
Rent-up factor 0.883
Net tenant rental -4,062
Operating deficit 3,899
Investor contribution
purchase price $449,500 x 0.004 –1,798
Net monthly deficit 2,101
Present value of deficit
over 36 mos. at 13%
monthly deficit of 2,101x 29.68 62,364 [sic]
Rental deficit contribution 62,364
As a percent of purchase price 0.1387408
The rental deficit contribution shown above was calculated using a net
borrowing cost, exclusive of servicing and private mortgage insurance
of 16.75 percent.
The rental deficit contribution computed in the above
analysis, $62,364, differs from the amount used in EPIC's
cash-flow analysis for the project, $69,190, and differs
from the rental deficit contribution finally negotiated
with Fox & Jacobs, $67,643.
By instrument dated December 21, 1982, EPIC assigned
to EA 83-XII "its entire right, title and interest, as
purchaser and landlord" in the rental purchase agree-
ment dated December 18, 1982, with Fox & Jacobs. On
December 30, 1982, EA 83-XII closed the purchase of each
of the properties.
To finance its purchase of the subject properties,
EA 83-XII borrowed approximately 95 percent of the purchase
price of each of the properties from EMI. On the closing
date, EA 83-XII executed seven nonrecourse promissory
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