Arrived Homes: Vacation Rental Property Offerings

Fractional real estate platform Arrived Homes announced new offerings for three vacation properties in different growth markets.

Fractional real estate makes it possible for individual investors who don’t have the funds to buy entire properties to add real estate to their portfolios. Investing in real estate typically has a high financial barrier, making it difficult for average investors to take part. But with fractional investment, investors can own real estate and receive passive income without the hassle of property management and being a landlord. 

With returns coming from rents received and potential capital gains when the property sells, fractional real estate continues to be a more attractive asset class for investors looking to diversify their portfolios. With vacation rentals, investors receive dividends generated from guest bookings in addition to the appreciation of the property.

According to data from Zillow and AirDNA, vacation rentals generate up to 160% more revenue on average than traditional long-term rental properties. 

The Smokey

Photo courtesy of Arrived Homes

The Smokey is a 2023 new build nestled in Sevierville, Tennessee, home to the Great Smoky Mountains. The vacation rental has three bedrooms, 3½ bathrooms and over 2,480 square feet, giving the home the ability to host large families. The house offers guests a game loft, hot tub, indoor theater and balconies that look out to the mountains. 

According to the National Park Service, the Smokies had over 14 million visitors in 2021. With so much of the local economy revolving around tourism, The Smokey will have consistent bookings. The mountains offer visitors nature walks, hiking, ziplining and more outdoor recreation activities. 

• Minimum investment: $100
• Target internal rate of return (IRR): 9.5% (based on historical returns)
• Market average daily rate: $327
• Market average monthly revenue: $7,536
• Market average monthly occupancy rate: 64%
• Hold period: five to 15 years

The Billingswood

Photo courtesy of Arrived Homes

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The Billingswood is a lakeside haven located in the much-desired Sleepy Hollow Lake Community in New York’s Hudson Valley. The house has open living spaces and a sunroom that looks out at the lake views. Guests will have over 150 feet of private lakefront access. 

Located near the Catskill Mountains, the area draws visitors who enjoy outdoor activities such as hiking, fishing, swimming and boating. Towns near The Billingswood have historical sites, art galleries, restaurants and bars.

• Minimum investment: $100
• Target IRR: 10% (based on historical returns)
• Market average daily rate: $301
• Market average monthly revenue: $6,808
• Market average monthly occupancy rate: 60%
• Hold period: five to 15 years

The Preciosa

Photo courtesy of Arrived Homes

Located in the heart of Scottsdale, Arizona, The Preciosa’s open-concept living space has an updated kitchen and a game room. The large fenced-in backyard has an in-ground pool and patio areas making it a great spot to spend a day lounging while on vacation. The home was purchased for $875,000, has a total fund size of $1,196,840 and is expected to begin paying investor dividends in October. 

The Scottsdale area is known for its 300 days of sunshine, luxurious resorts, world-class golf, outdoor recreation, high-end retail and nightlife. Scottsdale had over 4.4 million day-trip visitors in 2021, making it one of the most visited vacation destinations in the country. 

• Minimum investment: $100
• Target IRR: 9.6% (based on historical returns)
• Market average daily rate: $457
• Market average monthly revenue: $9,105
• Market average monthly occupancy rate: 57%
• Hold period: five to 15 years

Check out more offerings available from Arrived Homes