The  Metroplex  is  located  at the hub of four  interstate  highways.
Interstate 35 (Stemmons Freeway) and Interstate 45 provide north/south access to
and from the Metroplex, while Interstate 20 and Interstate 30 (C.F. Hon Freeway)
provide east/west access.  Another major artery feeding into the central city is
US-67 (Marvin D. Love  Freeway).  Two outer loops,  Interstate 635 in Dallas and
Interstate 820 in Forth Worth, surround the respective cities.

         The many  institutions of higher learning in the area include Southern
Methodist University, the University of Texas at Dallas, the University of Texas
at Arlington, the University of North Texas and Texas Christian University.

         The  1,000-acre  Texas Motor  Speedway  was recently  completed.  It is
located just north of Alliance  Airport in Denton  County,  and currently  seats
approximately  160,000 people. The speedway has created  approximately 6,200 new
permanent and temporary jobs for the area.

          The  immediate  area  surrounding  the  Property   consists  of  other
multifamily,  residential,  commercial and retail  development.  The Property is
readily accessible from Interstate 635 and North Dallas Tollway. The Property is
an  approximately  25-minute  drive  from the  Dallas/Fort  Worth  International
Airport and within 15 minutes from Dallas Central Business District.

         Description  of the  Property.  The Property  consists of 242 apartment
units in 16 two-story buildings on approximately 9.4 acres of land. The Property
was constructed in 1988.

         The  Property  offers 16 different  unit types.  The unit mix and rents
being charged new tenants as of November, 1998 are as follows:

<TABLE>
<CAPTION>
                                                         Approximate Interior
    Quantity                 Type                           Square Footage                  Monthly Rental
    --------                 ----                           --------------                  --------------
<S>               <C>                                          <C>                              <C> 
       36         One Bedroom/One Bathroom                      639                              $585
                  w/Drybar

       18         One Bedroom/One Bathroom                      639                               595
                  w/Fireplace

       18         One Bedroom/One Bathroom                      639                               605
                  w/Fireplace/Vaulted Ceilings

       34         One Bedroom/One Bathroom                      721                               625
                  w/Drybar
</TABLE>


                                       -4-


<PAGE>

<TABLE>
<CAPTION>
                                                         Approximate Interior
    Quantity                 Type                           Square Footage                  Monthly Rental
    --------                 ----                           --------------                  --------------
<S>               <C>                                          <C>                              <C> 
       26         One Bedroom/One Bathroom                      721                              $650
                  w/Fireplace

       12         One Bedroom/One Bathroom                      721                               660
                  w/Fireplace/Vaulted Ceilings

       10         One Bedroom/One                               812                               680
                  Bathroom/Sunroom w/Drybar

        2         One Bedroom/One                               812                               690
                  Bathroom/Sunroom w/Fireplace

       12         One Bedroom/One                               812                               700
                  Bathroom/Sunroom
                  w/Fireplace/Vaulted Ceilings

       10         One Bedroom/One Bathroom/Den                  875                               740
                  w/Drybar

       20         One Bedroom/One Bathroom/Den                  875                               745
                  w/Fireplace

       10         One Bedroom/One                               963                               785
                  Bathroom/Den/Sunroom
                  w/Fireplace

        8         Two Bedrooms/Two Bathrooms                    967                               815
                  w/Drybar

       16         Two Bedrooms/Two Bathrooms                    967                               825
                  w/Fireplace

        8         Two Bedrooms/Two                             1053                               875
                  Bathrooms/Sunroom
                  w/Fireplace/Vaulted Ceilings

        2         Two Bedrooms/Two Bathrooms TH                1141                               955
                  w/Fireplace
</TABLE>

          The apartments provide a total of approximately 187,000 square feet of
net rentable area.

                                       -5-


<PAGE>




         The  Company  believes  that  the  Property  has  generally  been  well
maintained  and  is  in  good  condition.  However,  the  Company  has  budgeted
approximately  $181,500 for repairs and capital  improvements  to the  Property.
These repairs and  improvements  will include  clubhouse  renovations,  exterior
painting and interior upgrades.

         The following information is provided by the seller. Physical occupancy
at the property  averaged  approximately  95% in 1995, 92% in 1996, 93% in 1997,
and 93.2%  during  the first nine  months of 1998.  Leases at the  property  are
generally for terms of one year or less. Physical occupancy averages for earlier
time  periods are not  available.  Average  rental rates for the past five years
have generally  increased.  As an example, a one bedroom, one bathroom apartment
with a fire place and  vaulted  ceilings  (639 square  feet)  rented for $475 in
1993,  $485 in 1994,  $504 in 1995,  $514 in 1996 and $524 in 1997.  The average
effective  annual rental per square foot at the property for 1993,  1994,  1995,
1996 and 1997 was $8.25, 8.43, 8.76, 8.93, and 9.10 , respectively.

         The Property has an outdoor swimming pool, deck and cabana, heated spa,
fitness  center with men's and women's locker rooms with showers and dry saunas,
two open grills and picnic areas, a laundry facility,  gazebos,  covered parking
and a controlled  access gate with  fountains.  There is also a clubhouse with a
leasing office.

         The buildings are wood-frame  construction  with a combination of brick
veneer,  painted wood siding and stucco on concrete slab foundations.  Roofs are
pitched and covered with asphalt shingles on plywood sheathing.

         Each apartment unit has  wall-to-wall  carpeting in the living area and
vinyl floors in the kitchen and bath. Each apartment unit has a cable television
hook-up and an individually  controlled heating and air-conditioning  unit. Each
kitchen  has a  refrigerator/freezer  with  icemaker,  electric  range and oven,
dishwasher  and garbage  disposal.  All of the units include nine foot ceilings,
miniblinds,  vertical  blinds,  ceiling fans and washer/dryer  connections.  The
owner of the property pays for cold water,  sewer  charges,  gas (for hot water)
and trash  removal.  The tenants pay for  electricity  service,  which  includes
cooking, lighting, heating and air-conditioning.

         There are at least four  apartment  properties  that  compete  with the
Property.  All  offer  similar  amenities  and  generally  have  rents  that are
comparable to those of the Property.  Based on a recent  telephone  survey,  the
Advisor  estimates  that  occupancy  at  nearby  competing  properties  averaged
approximately 93% at November 1, 1998.

         As of November 17, 1998, the Property was approximately 96% occupied.


                                       -6-


<PAGE>



         The following  table sets forth the 1998 real estate tax information on
the Property:

<TABLE>
<CAPTION>
                                    Assessed
    Jurisdiction                     Value                 Rate                 Tax
    ------------                     -----                 ----                 ---
<S>                             <C>                      <C>                <C>        
County of Collin                $9,203,807.00            $1.88805           $173,772.48
City of Dallas                   9,169,400.00             0.64910             59,518.58
--------------                                                                ---------
         Total                                                              $233,291.06
</TABLE>

         The basis of the depreciable  residential  real property portion of the
Property (currently estimated at about $9,207,124) will be depreciated over 27.5
years on a straight-line  basis. The basis of the personal property portion will
be depreciated in accordance with the modified  accelerated cost recovery system
of the Internal  Revenue Code of 1986,  as amended (the  "Code").  Amounts to be
spent by the  Company  on  repairs  and  improvements  will be  treated  for tax
purposes as permitted by the Code based on the nature of the expenditures.

         The  Advisor  and the  Company  believe  that the  Property is and will
continue to be adequately covered by property and liability insurance.

         Material  Factors  Considered in Assessing  the  Property.  The factors
considered  by the Advisor and the  Company to be  relevant  in  evaluating  the
Property for acquisition by the Company included the following:

         1. The Dallas/Fort  Worth area generally and the specific area in which
the Property is located  were  perceived  as being  characterized  by a diverse,
stable and steadily  growing  economy.  Accordingly,  it was believed  that such
economy  and  its  anticipated  growth  and  development  would  support  stable
occupancy rates and reasonable increases in rents at the Property.

         2.  Based  upon an  engineering  report  and its own  inspections,  the
Advisor  believes that the Property has been well maintained and is generally in
good  condition,  although  the Advisor  believes  that the planned  repairs and
improvements will allow an increase in rents at the Property.

         3. The  Property  has an  advantageous  location  and is  located  in a
rapidly-growing area proximate to centers of employment and retail development.

         Acquisition  and  Management  Services and Fees.  In  consideration  of
services   rendered  to  the  Company  in  connection  with  the  selection  and
acquisition  of the  Property,  the Company  paid Apple  Residential  Management
Group, Inc. a property  acquisition fee equal to 2% of the purchase price of the
property,  or $230,000.  Apple Residential  Management Group, Inc. will serve as
property  manager  for the  Property  and for its  services  will be paid by the
Company  a monthly  management  fee  equal to 5% of the  gross  revenues  of the
Property plus reimbursement of certain expenses.

                                       -7-


<PAGE>




         The Company is not aware of any material  adverse  factors  relating to
the  Property  not set forth in this  report  that  would  cause  the  financial
information contained in this report not to be necessarily  indicative of future
operating results.

                                       -8-