Category Description $ Totals

179,900$

30,000$

209,900$

18,000$

Home Monthly Estimate 1,500$

5,290$

Taxes 2016 Actual 2,291$

Insurance 2017 Estimated 900$

Repairs Included in Reserve

Maintenanace Included in Reserve

HOA None -$

Utilities None - Tenant expense -$

Property Management None- Owner Managed -$

Reserve 1% of Investment 2,099$

Net Operating Income 12,710$

Estimated Annual Debt Service *Estimated montly P&I * 12 10,210$

Net Cash Flow 2,500$

Cap Rate 7.06%

1st year Cash on Cash 5.41%

Net Operating Income / Sale Price

1st Year Net Cash Flow / (Down Payment + 1% Closing Cost)

* $850.83 estimated monthly P&I. 4.5% APR. Arm 5 year fixed. 30-year amortization. 1% closing cost. Calculator: http://www.calculator.net/

315 W Burbank Fredericskburg TX 78624 Financial Model

Investor Proforma

PERFORMANCE INDICATORS

ANNUAL RENTAL REVENUES

ANNUAL OPERATING EXPENSES

Annual Rental Revenues - Annual Operating Expenses

Net Operating Income - *Annual Debt Service

LIST PRICE

ESTIMATED RENOVATION BUDGET

INVESTMENT (LIST PRICE + ESTIMATED IMPROVEMENTS)

Category Calculation $

List Price 179,900$

Investor Rehab Budget 30,000$

Investment

List Price +

Rehab Cost 209,900$

2016 Home Value: Avg. Sale Price per SF in

Fredericksburg for Homes Under 1,000 SF * 926 SF $266 SF * 926 SF 246,316$

Instant Equity

2016 Home Value

- Investment 36,416$

$36,000 Instant Equity AFTER $30,000 Investor Renovation Investment

Flip or investor opportunityfor major renovations and still be way under market

$194

$266 $268

$418

$-

$50

$100

$150

$200

$250

$300

$350

$400

$450

List Price Average Median Maximum

List Price / SF Compared to 2016 Fredericksburg Sale Price / SF Homes Sold Under 1,000 SF

Flip or investor opportunityfor major renovations and still be way under market

$179,900

$246,492 $247,781

$387,411

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

List Price Average Median Maximum

List Price Compared to 2016 Fredericksburg Sale Price Homes Sold Under 1,000 SF

Gillespie CAD Satellite with Property Lines

Not in flood plain

Who lives in Fredericksburg ESRI Tapestry Segmentation Profile

54% Midlife Constants

2.3 Avg. Household Size46 Median AgeLive in smaller communitiesGenerous, not spendthrifts

14% Old & Newcomers

2.1 Avg. Household Size39 Median AgeSingle’s lifestyles on a budgetAge not obvious from choices

16% Comfortable Empty Nesters

2.5 Avg. Household Size47 Median AgeMany live where they grew upValue health and financial well-being

9% Retirement Communities

1.9 Avg. Household Size52 Median AgeFiscally responsible eye on financesPaid their dues, prefer eating out

7% The Great Outdoors

2.4 Avg. Household Size46 Median AgeInvest in real estate vs. stocksMost still work

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2008 2012 2016 2020

Fredericksburg Annual Visitors Historic & Projected

Values

Forecast

Lower Confidence Bound

Upper Confidence Bound

Timeline Values Forecast

Lower

Confidence

Bound

Upper

Confidence

Bound

2008 1,000,000

2012 1,200,000

2016 1,500,000 1,500,000 1,500,000 1,500,000

2020 1,737,080 1,679,391 1,794,769

Historic data from Fredericksburg Visitor & Convention Bureau Projections from Southwest Partners

Visitor demographics

From Fredericksburg Visitor & Convention Bureau 2013 Annual Report

Visitor home locations

From Fredericksburg Visitor & Convention Bureau 2013 Annual Report

19.0%

16.4%

14.5%

12.3%13.5%

9.6%

12.7% 12.6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Fredericksburg Arlington Austin Dallas Fort Worth Galveston Houston San Antonio

% $500K Household Net Worth

$761,089

$477,002

$412,546

$422,814

$383,250

$348,779

$389,088

$367,250

$- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000

Fredericksburg

Arlington

Austin

Dallas

Fort Worth

Galveston

Houston

San Antonio

Average Household Net Worth

$271,628

$179,519

$323,852

$263,137

$181,722

$215,664 $234,952

$169,569

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

Fredericksburg Arlington Austin Dallas Fort Worth Galveston Houston San Antonio

Average Home Values

0.9 miles to W Main ST

0.4 miles to N Llano ST

1-3-5 mile radii map

30-60-90 mile radii map