Greg,

Here are my comments and questions on the cost estimates:

Cost per square foot seem too low for construction $33.30/sf (gross)/$36/sf 
(rentable)

What do the cost for On-Site General Requirements ( $299,818) represent?

Will you review the builders profit and fees with me again?  You mentioned 2% 
overhead, 3 %  ???, and 5% profit.

Why is profit only 4%? 

Why are the architect fees up to $200K.  I thought they would be $80K.

What is the $617K of profit allowance?  Is that the developers profit to 
boost loan amount but not a real cost?

Total Closing and Application costs of 350K?  That seems very high?  Who 
receives the 2 points?  How much will be sunk costs if FHA declines us?

Where is your 1%?  Are you receiving one of the points on the loan?

What is the status on the operating pro forma?  My back of the envelope puts 
NOI at $877K assuming 625/1BR, 1300/3BR, 950/2BR, 5% vacancy, and 40% 
expenses.  After debt service that would only leave $122K.  The coverage 
would only be 1.16.

Talk to you this afternoon.

Phillip