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JSM Properties <br />10025. Lafayette Blvd. Ste.1 <br />South Bend, IN 46601 <br />574-287-4803 Office <br />574-288-9040 Fax <br />July 19, 2010 <br />Community and Economic Development <br />227 West Jefferson Blvd. <br />Suite 1200 S <br />South Bend, Indiana 46601 <br />Attn: Dave Relos <br />Re: 733 W. Indiana Ave <br />South Bend, IN 46613 <br />Mr. Relos: <br />This is Teacher's Credit Union formula for rental property values: <br />Per year <br />$650.00 rent per month = $7,800 <br />Vacancy-10% _ - 7gp <br /> $7,020 <br />Taxes = - 1180 <br /> $51340 <br />Insurance = - 716 <br /> $5,124 <br />Maintenance = - 500 <br />Net Operating Income = $4,624 <br />Cap Rate = 11% <br />Value of Investment Property = $42,036 <br />I owe approximately $40;000.00 on this property. As you can see by the 2004 appraisal, this house <br />appraised for $55,000.00. I'm aware of the market downturn, but this has not affected the income of <br />the property. The condition of the property is about the same as it was in 2004. Therefore, I think <br />$40,000.00 is fair purchase price. <br />