- 30 -
Operating expenses per month $54,696
Tenant rental revenue -22,860
Rent-up factor 0.889
Net tenant rental -20,323
Operating deficit 34,373
Investor contribution
purchase price $3,034,550 x 0.004 –12,138
Net monthly deficit 22,235
Present value of deficit
over 36 mos. at 13%
monthly deficit of 22,235 x 29.68659,929 [sic]
Rental deficit contribution 659,929
As a percent of purchase price 0.2174716
The rental deficit contribution shown above was calculated using a net
borrowing cost, exclusive of servicing and private mortgage insurance
of 16.75.
The rental deficit contribution computed in the above
analysis differs from the amount finally negotiated with
Babcock, $587,676.
By instrument dated December 29, 1982, EPIC assigned
to EA 83-XII "all its right, title and interest" in the
rental purchase agreement dated December 22, 1982, with
Babcock. Thereafter, EA 83-XII closed the sale of each
of the 39 condominium units as of December 30, 1982.
To finance its purchase of the condominium units in
the Paseos Castellanos complex, EA 83-XII borrowed from
EMI approximately 95 percent of the purchase price of each
unit. On or about the closing date, EA 83-XII executed 39
nonrecourse promissory notes in the aggregate principal
amount of $2,869,625 payable to EMI in monthly installments
of interest only for 5 years at the rate of 14.375 percent.
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