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EXHIBIT 99.2
RENAISSANCE PARC APARTMENTS
STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
YEAR ENDED DECEMBER 31, 1996
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Independent Auditors' Report
To the Board of Trustees
Income Opportunity Realty Investors, Inc.
We have audited the accompanying statement of revenues and direct operating
expenses of Renaissance Parc Apartments for the year ended December 31, 1996.
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 on 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 includes
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 and significant estimates
made by management, as well as evaluating the overall statement of revenues and
direct operating expenses presentation. We believe that our audit provides a
reasonable basis for our opinion.
The accompanying financial statement is prepared for the purpose of complying
with the rules and regulations of the Securities and Exchange Commission (for
inclusion in Form 8-K of Income Opportunity Realty Investors, Inc.) and, as
described in Note 1, is not intended to be a complete presentation of the
results of operations.
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 Renaissance Parc Apartments for the year ended
December 31, 1996, in conformity with generally accepted accounting principles.
FARMER, FUQUA, HUNT & MUNSELLE, P.C.
Dallas, Texas
May 20, 1997
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RENAISSANCE PARC APARTMENTS
STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
Year Ended December 31, 1996
REVENUES
Net rental revenues $ 2,277,308
Other revenues 99,736
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Total revenues 2,377,044
OPERATING EXPENSES
Property taxes 253,092
Salaries and benefits 215,553
Repairs and maintenance 136,560
Utilities 74,560
Insurance 48,001
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Total direct operating expenses 727,766
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REVENUES IN EXCESS OF DIRECT OPERATING EXPENSES $ 1,649,278
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The accompanying notes are an integral part of this statement.
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RENAISSANCE PARC APARTMENTS
NOTES TO STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
December 31, 1996
NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION
Renaissance Parc Apartments is a 294-unit apartment complex
located in Dallas, Texas. During 1996, the property was owned
by DMC Parkway Place Apartments I, J.V.
The accompanying financial statement does not include a
provision for depreciation and amortization, bad debt expense,
interest expense or income taxes. Accordingly, this statement
is not intended to be a complete presentation of the results
of operations.
NOTE 2: ACCOUNTING ESTIMATES
The preparation of financial statements in conformity with
generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported
amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
NOTE 3: OTHER REVENUES
Other revenues consists of the following:
Late charges $ 43,351
Parking revenue 22,494
Laundry, vending and
telephone revenue 17,662
Miscellaneous 16,229
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$ 99,736
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NOTE 4: SUBSEQUENT EVENT
The property was sold to Income Opportunity Realty Investors,
Inc., a Nevada corporation, on June 11, 1997.
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