Re: The Stage ,
 Jeff,

Before you write off the stage, a few things to think about.

1.  Operating expenses include $22,000 of materials for maintenance and 
repairs.  Plus having a full time onsite maintenance man means no extra labor 
cost for repairs.  There are only 44 units a lot of his time is spent on 
repairs.

2.  What is an outside management firm going to do?  A full time onsite 
manager is all that is required.  As I mentioned the prior manager has 
interest in returning.  Another alternative would be to hire a male manager 
that could do more make readies and lawn care.  If you turn it over to a 
management company you could surely reduce the cost of a full time manager 
onsite.

3.  Considering #1 & #2 $115,000 NOI is not necessarily overstated.  If you 
want to be ultra conservative use $100,000 at the lowest.

4.  Getting cash out is not a priority to me.  So I am willing to structure 
this deal with minimum cash.  A 10% note actually attractive. See below.

My job just doesn't give me the time to manage this property.  This property 
definitely requires some time but it has the return to justify the effort.


Sales Price  705,000

1st Lien   473,500

2nd Lien  225,000

Transfer fee    7,500

Cash required   14,500


NOI   100,000

1st Lien    47,292

2nd Lien   23,694

Cash flow  29,014

Cash on cash  200%


These numbers are using the conservative NOI, if it comes in at $115K then 
cash on cash return would be more like 300%.   This doesn't reflect the 
additional profit opportunity of selling the property in the next few years 
for a higher price.

Do you want to reconsider?  Let me know.

Phillip
jsmith@austintx.com