Birnamewood 8-24-2006 Pro-forma Analysis

	Property Information			Expense Information
	Address:	Spring, TX House
	After Rehab Value:	$110,000		Management Fee (%):	0.00%
	Purchase Price:	$75,000		Annual Maintenance:	$                              -
	Estimated Rehab costs:	$3,800		Vacancy Rate:	0%
	Seller Contribution:	$0.00		Pest Control	$                              -
	Base Costs	$78,800
	Estimated spread after rehab	$31,200		Refi Information
	Spread %:	71.64%
				Initial Purchase Price	$                              -
	Yearly Taxes:	$2,787		Current Debt	$                              -
	Yearly HOA:	$250		Current Equity	0%
	Yearly Rental Insurance:	$700		Target Equity	0%
	Monthly Lease Amount:	$1,000		Equity Cash Out	$                              -
	Target Appreciation:	50%		Initial Investment	$                              -
	Target Sale Price:	$165,000		Cash Invested After Refi	$0.00
	Financing Options		Prin.+Int.	Int. Only	Deferred Int.
	% Down Payment	10%	$7,500	$7,500	$15,000
	1st Mortgage Amnt		$67,500	$67,500	$60,000
	Interest Rate		6.750%	7.000%	1.400%	7.90%	<-- Annual Rate
	Term (years)		30	10	40
	Monthly Payment		$437.80	$393.75	$163.32	$412.69
	2nd Mortgage Amnt		$                            -	$                             -	$                              -
	Interest Rate		7.0000%	7.0000%	7.0000%
	Term
	Monthly Payment		$0.00	$0.00	$0.00
	Total Payment		$437.80	$393.75	$163.32
	Closing Costs Estimate--->		Prin. + Int.	Int. Only	Deferred Int.	Cash Purchase
	Origination Fee %:	Enter %	1.0%	1.0%	1.0%
	Origination Fees:	Auto Fill	$675	$675	$600
	Other Title Costs:	Escrow fee, etc.	$350	$350	$350	$350
	Title Policy -Owner:	includes mortgage policy if needed	$225	$225	$225	$0
	Doc & Closing Costs:	depends on lender	$1,250	$1,250	$500	$250
	Mortgage Insurance:	.7% Mtg if DP>10%, .9% Mtg if DP<10%	$39.38	$39.38	$0.00
	Survey, Appraisal & Inspection:	375, 400, 200	$775	$775	$775	$375
	Totals		$3,314	$3,314	$2,450	$975

	Controlling Factors			Property Information				Spring, TX House
	Annual Rent Increases	5.00%		Purchase Price		$75,000.00
	Annual Property Tax Change	2.00%		Price + Rehab		$78,800.00
	Annual Appreciation Change	5.00%		Market Value		$110,000.00
	Hold Term (years)	4		Target Resale Price		$165,000.00
	Expense Information			Year 1			Year 2			Year 3			Year 4
				Monthly	Annual		Monthly	Annual		Monthly	Annual		Monthly	Annual
	Taxes			$232	$2,787		$237	$2,843		$242	$2,900		$246	$2,958
	Insurance			$58	$700		$58	$700		$58	$700		$58	$700
	Lawn service			0	$0		0	$0		0	$0		0	$0
	Maintenance			$0.00	$0		$0.00	$0		$0.00	$0		$0.00	$0
	Water			$0	$0		$0	$0		$0	$0		$0	$0
	Pest control			$0	$0		$0	$0		$0	$0		$0	$0
	Lease fee			$0.00	$0		$0.00	$0		$0.00	$0		$0.00	$0
	Management fee			$0.00	$0		$0.00	$0		$0.00	$0		$0.00	$0
	HOA Dues			$21	$250		$21	$250		$21	$250		$21	$250
	Total Expenses:			$311	$3,737		$316	$3,793		$321	$3,850		$326	$3,908
	Income Information
	Base Rent			$1,000.00	$12,000		$1,050.00	$12,600.00		$1,102.50	$13,230.00		$1,157.63	$13,891.50
	Vacancy Allowance (%)	0.0%		$0	$0		$0	$0		$0	$0		$0	$0
	Other Income			$0	$0		$0	$0		$0	$0		$0	$0
	Scheduled Gross Income			$1,000	$12,000		$1,050.00	$12,600.00		$1,102.50	$13,230.00		$1,157.63	$13,891.50
	NOI				$8,263			$8,807			$9,380			$9,984
	Investment Summary		Principle & Interest				Interest Only			Deferred Interest
				6.750%			7.000%			7.90%
	Total Capital Invested				$14,614.38			$14,614.38			$21,250.00
	Borrowed Capital				$          -			$             -			$              -
	Financing			Monthly	Annual		Monthly	Annual		Monthly	Annual
	Payments			$437.80	$5,253.64		$393.75	$4,725.00		$163.32	$1,959.85
	Mortgage Insurance (monthly) [PMI]			$39.38	$473		$39.38	$473		$0.00	$0
	Total Payments			$477.18	$5,726		$433.13	$5,198		$163.32	$1,960
	PITI			$788.60	$9,463.14		$744.54	$8,934.50		$474.74	$5,696.85
	Total Expenses			$311	$3,737		$311	$3,737		$311	$3,737
	Total Income			$1,000	$12,000		$1,000	$12,000		$1,000	$12,000
	Net Profit (Loss)			$211	$2,537		$255	$3,066		$525	$6,303
	Return on Capital (Year 1)				17.359%			20.976%			29.662%
	Principle Reduction				$3,306.02
	Return on Equity Line				#DIV/0!			#DIV/0!			#DIV/0!
	Deferred Interest										$15,587.49
	Debt  to Income				105%			99%			63%
	Net Income By Year		Year:		Net Inc.	Year:		Net Inc.	Year:		Net Inc.
			1		$2,537	1		$3,066	1		$6,303
			2		$3,081.12	2		$3,609.76	2		$6,847.41
			3		$3,654.26	3		$4,182.91	3		$7,420.56
			4		$4,257.77	4		$4,786.41	4		$8,024.06
	Profit Margin By Year		Year:		Net Inc.	Year:		Net Inc.	Year:		Net Inc.
	(Net Income / Gross Revenue)		1		21%	1		26%	1		53%
			2		24%	2		29%	2		54%
			3		28%	3		32%	3		56%
			4		31%	4		34%	4		58%
	Loan Amortization Schedule													Deferred Interest Schedule
			Principle		Interest					Principle		Interest			Principle		Interest	Interest Deferred
	Principle Payment @ yr (est.)	Year:	Pd.		Pd.				Year:	Pd.		Pd.		Year:	Pd.		Pd.
	(Annualized)	1	$747.37	E	$4,506.27				1	$1,129.20	E	$830.64		1	$237.78	E	$4,732.14	$3,901.50
		2	$797.82		$4,455.83				2	$1,145.01		$814.84		2	$256.57		$4,714.11	$3,899.27
		3	$851.67		$4,401.97				3	$1,161.04		$798.81		3	$276.83		$4,694.59	$3,895.79
		4	$909.16		$4,344.49				4	$1,177.30		$782.55		4	$298.70		$4,673.48	$3,890.93
		5	$970.53		$4,283.12				5	$1,193.78		$766.07		5	$322.30		$4,650.64	$3,884.57
	Investment Return
	Property Value		$132,000.00					$132,000.00			$ 132,000.00
	Remaining Principle		-$64,193.98					-$67,500.00			-$60,000.00
	Interest Deferred										$15,587.49
	Equity		$ 67,806.02					$ 64,500.00			$  56,412.51
	Equity Return on Capital Invested		464%					441%			265%
	Equity Return on Borrowed Capital		#DIV/0!					#DIV/0!
	Net Profit from Rents		$15,420					$17,535			$28,595
	Rent Return on Capital Invested		106%					120%			134.57%
	Gross Profit from Investment		$  83,226.02					$  82,034.58			$  85,007.69
	Gross Return on Capital Invested		569%					561%			400.04%
	Schedule of Net Income	Cash Invested	($14,614.38)				Cash Invested	($14,614.38)		Cash Invested	($21,250.00)
		Year 1	$2,537				Year 1	$3,066		Year 1	$6,303
		Year 2	$3,081.12				Year 2	$3,609.76		Year 2	$6,847.41
		Year 3	$3,654.26				Year 3	$4,182.91		Year 3	$7,420.56
		Year 4	$4,257.77				Year 4	$4,786.41		Year 4	$8,024.06
		Equity	$67,806.02				Equity	$64,500.00		Equity	$56,412.51
	IRR of Investment over 4 Years		48%					49%			44%
	Using Equity, Yearly Net Income and Property Appreciation