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EXHIBIT 99.0
[ANDREW V. SCHNURR & CO. LETTERHEAD]
December 11, 1996
Philip Edmundson, Trustee
Capital Advantage Group
510 Bering Drive, Suite 300
Houston, Texas 77057
Dear Mr. Edmundson:
We have audited the accompanying statement of revenues and direct operating
expenses of Oak Run Manor for the year ended December 31, 1995. This statement
of revenues and direct operating expenses is the responsibility of the
Property's management. Our responsibility is to express an opinion on this
statement of revenues and direct operating expenses based upon our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the statement of revenues and direct
operating expenses is free of material misstatement. An audit included
examining, on a test basis, evidence supporting the amounts and disclosures in
the statement of revenues and direct operating expenses. An audit also includes
assessing the accounting principles used by management, as well as evaluating
the overall statement of revenues and direct operating expenses presentation.
We believe our audit provides a reasonable basis for our opinion.
In our opinion, the statement of revenues and direct operating expenses
referred to above presents fairly, in all material respects, the revenues and
direct operating expenses of Oak Run Manor for the year ended December 31,
1995, in conformity with generally accepted accounting principles.
Respectfully submitted,
/s/ ANDREW V. SCHNURR & CO.
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Andrew V. Schnurr & Co.
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OAK RUN MANOR
STATEMENT OF REVENUES AND DIRECT OPERATING EXPENSES
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1995
INCOME
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Rental Income $879,170.
Interset Income, Late Charges, Etc. 2,758.
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TOTAL INCOME 881,928.
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DIRECT EXPENSES
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Advertising $18,908.
Office Expenses 14,461.
Management Fees 42,267.
Legal & Accounting 4,645.
Telephone 3,373.
Janitor Payroll 81,571.
Electric 9,189.
Water & Sewer 53,331.
Exterminating 1,018.
Hospitalization 3,828.
Repairs - Materials 170,852.
Decorating Supplies & Contracts 33,916.
Taxes - Real Estate 128,756.
- Payroll 10,181.
Insurance - Hazard 20,602.
Gardening 22,802.
Bank Charges 291.
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TOTAL DIRECT EXPENSES 619,991.
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NET REVENUE $261,937.
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