Fractional real estate makes it feasible for individual investors without the ability to buy properties themselves to add real estate to their portfolios. Investing in real estate has typically always had a high financial barrier that made it difficult for average investors to partake.
Fortunately, with fractional investment, investors can own real estate and receive passive income without the everyday hassle of property management and playing the role of landlord. With returns coming in the form of rents received as well as potential capital gains once the property sells down the road, fractional real estate continues to become a more attractive asset class for investors looking to diversify their portfolios.
These seven fractional real estate offerings on Arrived Homes are worth checking out this week.
The Winston
Open for investment is this beautiful 3-bed, 2-bath, 1,750-square-foot home located in Huntsville, Alabama. At $10 a share, investors are expected to receive a 3.2% rental dividend yield combined with an expected property equity return of 4.3% per year. The Winston has a purchase price of $329,000, a total property offering amount of $381,732 and is offering a total of 38,174 shares.
The Richardson
This beautiful brick 3-bed and 2-bath, 1,665-square-foot home features an open floor plan and a good-sized backyard. Located in the low-volatility market of Northwest Arkansas, near the Ozark Mountains, this property expects to yield a 3.2% rental dividend yield and a 5.2% one-year overall equity increase. At a $315,000 purchase price and a total property offering amount of $368,794, there are a total of 36,880 shares being sold.
The Kessler
This single-story brick family home located in Northwest Arkansas features 3 beds and 2 baths with an attached 2-car garage. With a purchase price of $257,000, a total offering price of $301,985 at $10 a share, investors are expected to receive a 2% first-year dividend on rental income.
The Braxton
This newly renovated, 4-bed, 3-bath, 1,436-square-foot home is located in metropolitan Cincinnati, Ohio. With the target distribution date of January 2023, investors are expected to see equity growth at a rate of 2.2% and a rental dividend of 3.2% per year over the course of the 5- to 7-year holding period. With a purchase price of $323,500 and total offering price of $380,134, there are a total of 38,014 shares at $10 a share.
The Creekwood
Located in Madison, Alabama, this 1,658-square-foot home projects a 9.7% annual return between the property’s potential equity growth and rental income. The Creekwood has a purchase price of $289,500 and a total offering price of $338,884. A total of 38,014 shares are being sold at $10 per share. The first expected dividend date is January 2023, and the property is expected to retrieve investors a 2% rental dividend.
The Harrison
This beautiful 2,800-square-foot brick home is in the Chattanooga, Tennessee, area and will be receiving $2,895 in monthly rent. Expecting an annual rental yield of 2.4%, this 3-bed, 3.5-bath home has a purchase price of $460,000 and a total property offering price of $535,856. A total of 30,585 shares are being sold at $10 a share.
The Taylor
Located in Tuscaloosa, Alabama, this 3-bed, 2-bath brick home features a covered patio in a spacious backyard. At a purchase price of $230,000, a total property offering amount of $247,887, there are 15,989 total shares being sold. At the rental price of $1,395 a month, investors are expected to retrieve a 2.4% annual rental income return.
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