----

|                                                          |   | 2006                                 |         | 2005                                     |   |
|---------------------------------------------------------------|--------|--------------------------------------|--------------|------------------------------------------|--------|
| Current      assets                                           |   |                                 |         |                                     |   |
|    Cash                                        |   | $ 17,394                   |         | $ 11,994                       |   |
|    Accounts      receivable - tenant           |   | 5,937                           |    | 4,050                               |   |
|    Interest      receivable                    |   | 1,279                           |         | 1,279                               |   |
|       Total      current assets |   | 24,610                          |         | 17,323                              |   |
|                                                          |   |                                 |         |                                     |   |
| Restricted deposits      and funded reserves                  |   |                                 |         |                                     |   |
|    Tenant      security deposits               |   | 10,065                          |         | 10,116                              |   |
|    Tax      and insurance escrow               |   | 7,038                           |         | 3,616                               |   |
|    Mortgage      escrow fund                   |   | 108,424                         |         | 105,549                             |   |
|    Replacement      reserve                    |   | 68,305                          |         | 59,630                              |   |
|                                                          |   | 193,832                         |         | 178,911                             |   |
|                                                          |   |                                 |         |                                     |   |
| Property and      equipment, at cost                          |   |                                 |         |                                     |   |
|    Land                                        |   | 17,327                          |         | 17,327                              |   |
|    Building      and improvements              |   | 1,688,623                       |         | 1,688,623                           |   |
|    Equipment                                   |   |     936     |         |     936         |   |
|                                                          |   | 1,706,886                       |         | 1,706,886                           |   |
|    Accumulated      depreciation               |   | (471,594)                            |         | (429,379)                                |   |
|                                                          |   | 1,235,292                       |         | 1,277,507                           |   |
|                                                          |   |                                 |         |                                     |   |
|                                                          |   | $1,453,734                      |         | $1,473,741                          |   |
|                                                          |   |                                 |         |                                     |   |
| LIABILITIES AND      PARTNERS' EQUITY(DEFICIT)                |
|                                                          |   |                                 |         |                                     |   |
| Current      liabilities                                      |   |                                 |         |                                     |   |
| Accounts      payable                                         |   | $    1,222  |         | $     639  |   |
| Current      portion of mortgage notes payable                |   | 24,929                          |         | 24,929                              |   |
| Tenant      security deposits                                 |   | 9,797                           |         | 10,116                              |   |
|    Total      current liabilities              |   | 35,948                          |    | 35,684                              |   |
|                                                          |   |                                 |         |                                     |   |
| Long-term      debt                                           |   |                                 |         |                                     |   |
| Mortgage      payable, net of current portion                 |   | 754,908                         |         | 779,837                             |   |
|                                                          |   |                                 |         |                                     |   |
| Partners' equity      (deficit)                               |   | 662,878                         |         | 658,220                             |   |
|                                                          |   |                                 |         |                                     |   |
|                                                          |   | $ 1,453,734                |         | $ 1,473,741                    |   |
|                                                          |   |                                 |         |                                     |   |
|                                                          |   |                                 |         |                                     |   |
|                                                          |   |                                 |         |                                     |   |

----

|                                                             |   | 2006                     |   | 2005                     |   |
|------------------------------------------------------------------|--------|--------------------------|--------|--------------------------|--------|
|                                                             |   |                     |   |                     |   |
| Revenues                                                         |   |                     |   |                     |   |
|                                                             |   |                     |   |                     |   |
|    Rental      income                             |   | $ 134,904           |   | $ 132,627           |   |
|    Miscellaneous      service revenue             |   | 3,520                    |   | 4,328                    |   |
|    Interest      income                           |   |   6,149        |   |   3,433        |   |
|                                                             |   | 144,573                  |   | 140,388                  |   |
|                                                             |   |                     |   |                     |   |
| Expenses                                                         |   |                     |   |                     |   |
|    Administrative                                 |   | 715                      |   | 1,035                    |   |
|    Depreciation                                   |   | 42,216                   |   | 42,216                   |   |
|    Management      fees                           |   | 11,100                   |   | 11,200                   |   |
|    Office      expense                            |   | 1,127                    |   | 1,200                    |   |
|    Professional      services                     |   | 3,731                    |   | 3,459                    |   |
|    Property      insurance                        |   | 4,756                    |   | 4,642                    |   |
|    Real      estate taxes                         |   | 16,978                   |   | 17,598                   |   |
|    Repairs      and maintenance                   |   | 44,364                   |   | 42,971                   |   |
|    Salaries                                       |   | 4,556                    |   | 4,665                    |   |
|    Utilities                                      |   | 9,065                    |   | 9,686                    |   |
|    Miscellaneous                                  |   |   1,307        |   |   2,155        |   |
|                                                             |   | 139,915                  |   | 140,827                  |   |
|                                                             |   |                     |   |                     |   |
|        Net      income (loss) |   | $   4,658 |   | $   (439) |   |

----

|                             |   | Limited                 |   | General                           |   | Total                   |   |
|----------------------------------|--------|-------------------------|--------|-----------------------------------|--------|-------------------------|--------|
|                             |   |                    |   |                              |   |                    |   |
| Partners'      equity (deficit), |   |                    |   |                              |   |                    |   |
| December      31, 2004           |   | $ 719,641     |   | $ (60,982)                   |   | $ 658,659     |   |
|                             |   |                    |   |                              |   |                    |   |
| Net      loss                    |   |    (435) |   |      (4) |   |    (439) |   |
|                             |   |                    |   |                              |   |                    |   |
| Partners'      equity(deficit),  |   |                    |   |                              |   |                    |   |
| December      31, 2005           |   | $ 719,206     |   | $ (60,986)                   |   | $ 658,220     |   |
|                             |   |                    |   |                              |   |                    |   |
| Net      income                  |   |   4,611  |   |     47   |   |   4,658  |   |
|                             |   |                    |   |                              |   |                    |   |
| Partners'      equity (deficit), |   |                    |   |                              |   |                    |   |
| December      31, 2006           |   | $ 723,817     |   | $ (60,939)                   |   | $ 662,878     |   |
|                             |   |                    |   |                              |   |                    |   |

----

|                                                                                                                                     |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                     |   | 2006 |   | 2005 |   |
|                                                                                                                                     |   |   |   |   |   |
| Cash flows from      operating activities                                                                                                |   |   |   |   |   |
|    Net      income (loss)                                                                                                 |   | $  4,658  |   | $   (439) |   |
|    Adjustments      to reconcile net income(loss) to net                                                                  |   |   |   |   |   |
|      cash      provided by operating activities                                                                 |   |   |   |   |   |
|     Depreciation                                                                                                     |   | 42,216  |   | 42,216  |   |
|     Changes      in assets and liabilities                                                                           |   |   |   |   |   |
|        Increase      in tenant rent receivable                                                        |   | (1,887) |   | (783) |   |
|        Increase      in tax and insurance escrow                                                      |   | (3,422) |   | (2,681) |   |
|        Increase      (Decrease) in accounts payable                                                   |   | 582  |   | (594) |   |
|        Decrease      in tenant security deposits                                                      |   |    (268) |   |  (2,960) |   |
|          Total      adjustments                                                             |   |  37,221  |   |  35,198  |   |
|                                                                                                                                     |   |   |   |   |   |
|                Net      cash provided by operating activities |   |  41,879  |   |  34,759  |   |
|                                                                                                                                     |   |   |   |   |   |
| Cash flows from      investing activities   Net      deposits to mortgage escrow                                          |   | (2,875) |   | (1,915) |   |
|    Net      deposits to reserve for replacement                                                                           |   |  (8,675) |   |  (6,918) |   |
|    Telephone                                                                                                              |   |   |   |   |   |
|                Net      cash used by investing activities     |   | (11,550) |   |  (8,833) |   |
|                                                                                                                                     |   |   |   |   |   |
| Cash flows from      financing activities                                                                                                |   |   |   |   |   |
|    Principal      payments on mortgage notes                                                                              |   | (24,929) |   | (24,928) |   |
|                                                                                                                                     |   |   |   |   |   |
|                Net      cash used by financing activities     |   | (24,929) |   | (24,928) |   |
|                                                                                                                                     |   |   |   |   |   |
|                   Net      increase in cash    |   | 5,400  |   | 998  |   |
|                                                                                                                                     |   |   |   |   |   |
| Cash,      beginning of year                                                                                                             |   | 11,994  |   | 10,996  |   |
|      Cash,      end of year                                                                                     |   | $ 17,394  |   | $ 11,994  |   |
|                                                                                                                                     |   |   |   |   |   |

----

----

|                                    |   | 2006                      |   | 2005           |   |
|-----------------------------------------|--------|---------------------------|--------|----------------|--------|
|                                    |   |                      |   |           |   |
| Tax      and insurance                  |   | $   7,038* |   | $ 3,616*  |   |
| Replacement      reserve                |   | 68,305*                   |   | 59,630*        |   |
| Mortgage      escrow fund               |   | 108,424*                  |   | 105,549*       |   |
|      Subtotal  |   | $ 183,767            |   | $ 168,795 |   |
|                                    |   |                      |   |           |   |
| *      Restricted by Mortgage Agreement |   | 6.22%                     |   | 0.32%          |   |

| December      31,      |   | Amount        |   |
|------------------------|--------|---------------|--------|
|                   |   |          |   |
| 2007                   |   | $ 24,929 |   |
| 2008                   |   | 24,929        |   |
| 2009                   |   | 24,929        |   |
| 2010                   |   | 24,929        |   |
| 2011                   |   | 24,929        |   |
| 2012      - thereafter |   | 655,192       |   |
|                   |   | 754,908       |   |
|                   |   | $779,837      |   |
|                   |   |          |   |

----

----

----

|                                                                    |   | 2006                            |   | 2005                            |   |
|-------------------------------------------------------------------------|--------|---------------------------------|--------|---------------------------------|--------|
| REVENUE                                                                 |   |                            |   |                            |   |
|    Gross rental      revenue                             |   | $      143,856                  |   | $      133,056                  |   |
|    Less:      Vacancies                                  |   | (8,952)                         |   |   (429)               |   |
|    Less:      Miscellaneous                              |   |      0 |   |      0 |   |
|      Subtotal                                  |   | 134,904                         |   | 132,627                         |   |
|                                                                    |   |                            |   |                            |   |
| Vacancy      percentage                                                 |   | 6.22%                           |   | 0.32%                           |   |
|                                                                    |   |                            |   |                            |   |
| Laundry      income                                                     |   | 0                               |   | 82                              |   |
| Interest      income                                                    |   | 6,149                           |   | 3,433                           |   |
| Miscellaneous      income                                               |   | 3,520                           |   | 4,247                           |   |
|                                                                    |   |                            |   |                            |   |
|      Total    revenue                          |   | 144,573                         |   | 140,389                         |   |
|                                                                    |   |                            |   |                            |   |
| EXPENSES                                                                |   |                            |   |                            |   |
|    Professional      fees                                |   | 3,731                           |   | 3,459                           |   |
|    Telephone                                             |   |    494           |   |    575           |   |
|                                                                    |   |                            |   |                            |   |
|      General      and administrative subtotal  |   | 4,225                           |   | 4,034                           |   |
|                                                                    |   |                            |   |                            |   |
|    Decorating/Improvements                               |   | 793                             |   | 1,639                           |   |
|    Garbage      and trash                                |   | 3,705                           |   | 4,272                           |   |
|    Electric                                              |   | 1,265                           |   | 1,749                           |   |
|    Heat                                                  |   | 441                             |   | 645                             |   |
|    Insurance                                             |   | 5,575                           |   | 5,973                           |   |
|    Lawn                                                  |   | 6,620                           |   | 7,086                           |   |
|    Miscellaneous                                         |   | 1,348                           |   | 1,660                           |   |
|    Pest      control                                     |   | 1,342                           |   | 1,271                           |   |
|    Repairs      and maintenance                          |   | 31,904                          |   | 28,703                          |   |
|    Water      and sewer                                  |   | 7,359                           |   | 7,292                           |   |
|    Real      estate taxes                                |   | 16,978                          |   | 17,598                          |   |
|    Manager      payroll                                  |   | 5,044                           |   | 5,489                           |   |
|    Management      fee                                   |   | 11,100                          |   | 11,200                          |   |
|                                                                    |   |                            |   |                            |   |
|       Operating      expenditure subtotal |   | 93,474                          |   | 94,577                          |   |
|                                                                    |   |                            |   |                            |   |
|       Total      expenses                 |   | 97,699                          |   | 98,611                          |   |
|                                                                    |   |                            |   |                            |   |
|       Net      operating income           |   | $ 46,874                        |   | $ 41,778                        |   |
|                                                                    |   |                            |   |                            |   |
|       Replacement      reserve            |   | $        5,400        |   | $        5,400        |   |
|                                                                    |   |                            |   |                            |   |
|       Income      to service debt         |   | $ 41,474                        |   | $ 36,378                        |   |
|                                                                    |   |                            |   |                            |   |
|       Debt      service #1                |   | $ 24,929                        |   | $      24,928                   |   |
|                                                                    |   |                            |   |                            |   |

----

| Summary of Operating      and Administrative Expenses                 |   |
|-----------------------------------------------------------------------|--------|
|                                                                  |   | 2006 |   | 2005 |   |
|                                                                  |   |   |   |   |   |
| General      and administrative                                       |   | $      4,225 |   | $      4,034 |   |
|                                                                  |   |   |   |   |   |
| Utilities                                                             |   | 12,770 |   | 13,958 |   |
|                                                                  |   |   |   |   |   |
| Payroll                                                               |   | 5,044 |   | 5,489 |   |
|                                                                  |   |   |   |   |   |
| Maintenance                                                           |   | 42,007 |   | 40,359 |   |
|                                                                  |   |   |   |   |   |
| Management      fees                                                  |   | 11,100 |   | 11,200 |   |
|                                                                  |   |   |   |   |   |
| Tax                                                                   |   | 16,978 |   | 17,598 |   |
|                                                                  |   |   |   |   |   |
| Insurance                                                             |   | 5,575 |   | 5,973 |   |
|                                                                  |   |   |   |   |   |
|    Total      expenses                                 |   | $97,699 |   | $98,611 |   |
|                                                                  |   |   |   |   |   |
| Revenue      growth rate                                              |   | 2.98% |   | (0.29)% |   |
|                                                                  |   |   |   |   |   |
| Expense      growth rate                                              |   | (0.92)% |   | (3.55)% |   |
|                                                                  |   |   |   |   |   |
| Total      number of units:36  Per unit replacement reserve |   | $        150 |   | $      150 |   |