TABLE OF CONTENTS

I. Introduction

II. Market Method

III. Income Method

IV. Reconciliation

V. Time on the Market

VI. Seller's Net Sheet

VII. Owner Financing

VIII. Advantages Of Using TIP

IX. Marketing Plan

X. Dislaimer

XI. Cash Price vs. List Price

I. INTRODUCTION

A. This is a market analysis of recent <TYPE> sales and property for sale in the area of Austin designated <AREA> by the Austin Board of Realtors. This information is used to estimate a fair market value of your property using standard appraisal techniques.

The information gathered in this report came from reliable sources such as the tax office and other real estate offices and is deemed accurate but is not guaranteed by Texas Income Property. Duplex sales are analyzed with respect to:

SALES PRICE

LOCATION

AGE

DATE OF SALE

FLOOR PLAN

MARKET RENTS

LIVING AREA (Sq. Ft.)

PARKING

CONDITION INTERIOR

CONDITION EXTERIOR

EXPENSES

LOT SIZE

AMENITIES

FINANCING

B. Two standard appraisal techniques are used to analyze this information in order to estimate the value. These are:

1. Market Method
2. Income Method

In the conclusion these two methods are reconciled to estimate the fair market value.

II. MARKET METHOD - COMPARISON WITH ADJUSTMENTS TO SUBJECT PROPERTY:

The subject property is compared with the following sold and closed transactions on a line by line basis and value adjustments are estimated for each feature of the closed transaction. Adjustments are then added or sutacted from the
sales price to estimate the value of the subject property. The subject property is summarized below and the closed transactions are evaluated on the following pages.

The last section of this method summarizes competing properties with a brief description of the location, asking price, floorplan, rents and any other important information.

A. Subject Property

LOCATION: 4106 Ave C

DATE BUILT: 1900

FLOOR PLAN: 3-2 house + 1-1x2 Duplex

MARKET RENTS: Owner occupied house; $500 tl duplex

LIVING AREA: 1671 sf house + aprox. 500 sf duplex

PARKING: 20'x 20' garage

CONDITION INTERIOR: good

CONDITION EXTERIOR: wood siding; very good

EXPENSES:

1991 taxes: 936.09 hmstd & ovr 65

insurance: <>

utilities: <>

make ready/repairs: <>

LOT SIZE: 13,100 sf or 100' x 131'

AMENITIES: <>

A. Comparable 2307 La Casa

SOLD PRICE: $94,300

LOCATION: 1 mile from subject

DATE BUILT: 1969

DATE OF SALE: 7/91

FLOOR PLAN: 3/2 on each side

MARKET RENTS: $550-600

LIVING AREA: 1960

PARKING: n/a

CONDITION INTERIOR: good

CONDITION EXTERIOR: good

LOT SIZE: 74 x 103

EXPENSES:

1991 taxes: 936.09 hmstd & ovr 65

insurance: <>

utilities: <>

make ready/repairs: <>

AMENITIES Fireplace

FINANCING: Assumption of $87,200 loan at 9/%

TOTAL ADJUSTMENTS:

INDICATED VALUE OF SUBJECT: $<PRICE>

Gross Rent Multiplier

Sales price divided by Gross Monthly Market Rent = <> GRM
(Gross Rent Multiplier)

B. <ADDRESS> - Closed Sale

SOLD PRICE: $<>

LOCATION: <>

DATE BUILT: <>

DATE OF SALE: <>

FLOOR PLAN: <>

MARKET RENTS: <>

LIVING AREA: <>

PARKING: <>

CONDITION INTERIOR: <>

CONDITION EXTERIOR: <>

EXPENSES:

taxes: <>

insurance: <>

utilities: <>

make ready/repairs: <>

LOT SIZE: <>

AMENITIES <>

FINANCING: <>

TOTAL ADJUSTMENTS:

INDICATED VALUE OF SUBJECT: $<PRICE>

Gross Rent Multiplier

Sales price divided by Gross Monthly Market Rent = <> GRM
(Gross Rent Multiplier)

C. <ADDRESS> - Closed Sale

SOLD PRICE: $<>

LOCATION: <>

DATE BUILT: <>

DATE OF SALE: <>

FLOOR PLAN: <>

MARKET RENTS: <>

LIVING AREA: <>

PARKING: <>

CONDITION INTERIOR: <>

CONDITION EXTERIOR: <>

EXPENSES:

taxes: <>

insurance: <>

utilities: <>

make ready/repairs: <>

LOT SIZE: <>

AMENITIES <>

FINANCING: <>

TOTAL ADJUSTMENTS:

INDICATED VALUE OF SUBJECT: $<PRICE>

Gross Rent Multiplier

Sales price divided by Gross Monthly Market Rent = <> GRM
(Gross Rent Multiplier)

D. <ADDRESS> - Current Listing

LIST PRICE: $<PRICE>

LOCATION: <>

DATE BUILT: <>

FLOOR PLAN: <>

MARKET RENTS: <>

LIVING AREA: <>

PARKING: <>

CONDITION INTERIOR: <>

CONDITION EXTERIOR: <>

EXPENSES:

taxes: <>

insurance: <>

utilities: <>

make ready/repairs: <>

LOT SIZE: <>

AMENITIES: <>

FINANCING: <>

E. <ADDRESS> - Current Listing

LIST PRICE: $<PRICE>

LOCATION: <>

DATE BUILT: <>

FLOOR PLAN: <>

MARKET RENTS: <>

LIVING AREA: <>

PARKING: <>

CONDITION INTERIOR: <>

CONDITION EXTERIOR: <>

EXPENSES:

taxes: <>

insurance: <>

utilities: <>

make ready/repairs: <>

LOT SIZE: <>

AMENITIES: <>

FINANCING: <>

F. <ADDRESS> - Current Listing

LIST PRICE: $<PRICE>

LOCATION: <>

DATE BUILT: <>

FLOOR PLAN: <>

MARKET RENTS: <>

LIVING AREA: <>

PARKING: <>

CONDITION INTERIOR: <>

CONDITION EXTERIOR: <>

EXPENSES:

taxes: <>

insurance: <>

utilities: <>

make ready/repairs: <>

LOT SIZE: <>

AMENITIES: <>

FINANCING: <>

III. THE INCOME METHOD

When estimating market value by the income method, a ratio is developed between the sold price and the rental income. This is accomplished by using closed sales from the subject neighborhood and dividing the sales price by the rental
income. This results in a figure called the Gross Rent Multiplier (GRM). Market rents are then established for the
subject property and multiplied by the GRM which yields an estimate of value based on income stream.

SALES GROSS
ADDRESS PRICE RENT GRM

Comparable 1 <ADDRESS> <PRICE> <> <>

Comparable 2 <ADDRESS> <PRICE> <> <>

Comparable 3 <ADDRESS> <PRICE> <> <>

<COMMENTS>

Estimated rent for the subject: $<> Gross Rent/Month Times GRM of <> = $<> value.

IV. Reconciliation of the Methods:

ALLOCATION ALLOCATION
PERCENT VALUE
AVERAGE AMOUNT OBTAINED
BY MARKET COMPARISON: $<> <>% $<>

INDICATED VALUE USING
INCOME APPROACH: $<> <>% $<>

INDICATED VALUE UTILIZING
REPLACEMENT COST NEW,
LESS DEPRECIATION: $<> <>% $<>

100%

ESTIMATE OF CASH VALUE: $<>

Discount Points: +$<>
Additional Selling Expenses: +$<>
Total: $<>

Recommended list price, including 3 discount points and 6% real estate brokerage fee rounded to the nearest $500.00:
$<>

V. Time On The Market - Absorption Rate and Supply

The time on the market is affected by the absorption rate of sold properties and current market conditions. The annual absorption rate is the number of similar properties sold for the past 12 months in the subject market area. This rate
compared to the total number of properties for sale in that market area will estimate the supply of similar properties
for sale.

SALES IN PAST 12 MONTHS (Yearly absorption rate):

TOTAL NUMBER OF LISTINGS:

ESTIMATED SUPPLY:

TREND: _____UP _____STATIC _____DOWN

Comments:

VI. SELLER'S NET SHEET

This is an estimate only of your net sales proceeds after selling costs are considered. Some of the items may not be present depending on the type of offer you receive.

SELLER: ADDRESS:

DATE:

CREDITS

Sales Price 92,500.00
Insurance prorations 250.00
Reserves on Deposit with Loan Company

CHARGES

1st Lien Note (estimate)
2nd Lien Note 0.00
Discount Points ( %) on $ 0.00
Brokerage Fee (6%) 5,500.00
Title Policy 965.00
Security Deposits 600.00
Repair Allowance 1,500.00
1992 Tax (estimate) 0.00
Attorney Fee 350.00
IRS fee 35.00
Title Co. Escrow Fee 75.00
Tax Certificates 35.00
Recording Fees 20.00
Photos, Survey 0.00
Loan Pay-off Penalty 0.00
Rents from 1st to 1st 600.00
Interest from 1st to 1st 300.00
Tax Service Fee 72.50
Other
Estimated Charges

Approximate Balance Due to Seller $
Owner Financing 0.00
Net Cash to Seller $

Notes:

1 These figures are only estimated and are based on information obtained from sources deemed reliable, but are in no way guaranteed.

2. Seller should immediately notify lender of pending loan pay-off to reduce pay-off and interest charges.

3. Seller should cancel insurance at closing and funding to receive reimbursement.

4. Seller should change utilities and other services that are in the name of the Seller to the new owner after closing.

5. Always consult your CPA or accountant on the capital gains tax impact of selling your investment property.

VII. Owner Financing

A. An alternative to obtaining new financing at current market rates, which can sometimes be difficult depending on market conditions, is allowing a Buyer to assume your existing loan(s) and financing all or part of your equity. When making the decision to finance the equity in an installment sale the advantages and disadvantages should be considered for each situation. By working with a knowledgable Realtor who can analyze the market conditions, the property condition and neighborhood location, a strategy to market your property can be formulated to accomplish your objectives.

An owner financing checklist, which summarizes some important issues when selling your property, is summarized. In addition, your attorney and tax advisor should always be consulted whenever considering an installment sale.

1. Advantages for an installment sale of your investment property:

a. PREMIUM PRICE - Buyer usually pays a premium for properties with these terms. Sometimes 5% to 10% above market value.

b. REDUCED TAXES - Your capital gains taxes can often be reduced depending on your tax position and current tax law.

c. SAVINGS - Closing costs are reduced. There are no discount points for either seller or buyer to pay.

d. TIME - A transaction can take one to two weeks to complete.

2. Disadvantages of owner financing should also be considered:

a. LIABILITY TO PAY - The responsiblity of any note assumed by the buyer may still remain with you and/or any previous owner(s) going back to the original note maker. See your attorney for details.

b. DISCOUNT - If you need to sell your owner financed note to raise cash, a discount from face value may be required

B. OWNER FINANCING CHECKLIST

If you decide to finance a note for financial, tax, or market reasons, consider the following items:

1. If the property is sold in the future and your note is assumed, generally three things can occur:

a. Anyone can assume without providing a formal financial statement.
b. A qualified buyer can assume with an approved financial statement.
c. The entire Note could be due upon the sale. The exact manner of assumption is negotiable and factors such as length of time, terms, amount of owner financing and sales price can effect this issue.

2. Proof of insurance to cover owner financing at closing should be provided by Buyer.

3. Late penalty should be addressed on the contract (for example, late on the 15th, $25.00, or 4% penalty).

4. Copies of yearly paid tax receipts provided to seller if the owner is financing the first lien.

5. The owner of a note can sell it on the open market usually at a discounted value depending on yields
required by the marketplace.

Example:
a. Assume the market requires a yield of a 12% annual return to the buyer of note.
b. A $100,000.00 owner financed note at 9% with interest only payments and a balloon in 7 years.
c. Cash value today would be approximately $85,837.89.

This represents a discount of 14% from face value. In addition, the note can be sold in part or in whole. Some
Buyers of notes will buy 3 to 4 years of payments and give the note back to the seller after that time. Details can be
provided at the owners request from our office or most mortgage exchange brokers.

Consult your attorney, C.P.A., or tax advisor for any plans you may have in either buying, selling, or planning your real
estate portfolio.

VIII. ADVANTAGES OF USING TIP

A. Competitive advantage: We offer 4% to Selling Agents on 7% listings. This generates incentive, more interest, and more showings. As a result your property will sell faster at a higher price.

B. It requires more experience to sell duplexes and fourplexes than houses because these properties are occupied by tenants that may feel apprehensive about showings, inspections and the eventual sale of the property. We have experience in dealing with tenants and understand their needs for security and privacy.

C. We deal with sophisticated buyers that demand more information than a typical housebuyer, i.e., Market analysis, rental analysis, and cash flow analysis with tax implications. This takes more knowledge and expertise than the typical residential sales agent has to offer.

D. We're the best in our area of specialization. TIP is the leader in duplex and fourplex sales in Austin (see MLS statistics) for 1983, 1984, 1985, 1986 and 1987.

IX. MARKETING PLANS

A. Submit listing information to MLS (Multiple Listing Service) computer which is accessible to about 2,000 agents and brokers in the Austin metropolitan area.

B. Mail out information to over 2,000 investors.

C. Advertize in the Austin American Statesman.

D. Present information about our listings at seminars we conduct.

E. Mailouts presenting listing to owners in the immediate area surrounding the property.

F. Present our best listings in our quarterly newsletter.

G. Share our inventory with other members of the Commercial Investment Division of the Austin Board of Realtors.

X. DISCLAIMER

If a fee is charged for a Broker's Price Opinion or Comparative Market Analysis, the following disclaimer is submitted.

This is an opinion of value or comparative market analysis and should not be considered an appraisal. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

XI. Cash Price vs. List Price