Arrived Homes Offerings

Real estate investment platform Arrived Homes launched new offerings for rental homes this week. Investing in real estate typically has a high financial barrier, making it difficult for average investors to take part. But fractional real estate ownership makes it feasible for individual investors who don’t have the resources to purchase entire properties to add real estate to their portfolios. 

Investors can receive passive income without the hassle of property management and playing the role of landlord. With returns generated from rents received and potential capital gains when the property sells at the end of the holding period, fractional real estate has become an increasingly attractive asset class for investors looking to diversify their portfolios.

The Porthouse

Photo courtesy of Arrived Homes

The Porthouse is a four-bedroom, 2,720-square-foot rental property in the Savannah, Georgia, suburb of Hinesville. The home was acquired for $302,000 and will be rented for $2,195 a month, a rate expected to generate a 4.5% dividend in the first year.

While Savannah is known as a tourist destination, the local economy has seen growth in recent years with an influx of industry. It’s home to one of the busiest shipping ports in the region and the rise in industry and population has created a supply-and-demand imbalance in the housing market. The demand for housing in the region is expected to help the Porthouse maintain occupancy throughout the targeted holding period.

• Minimum investment: $100
• Target internal rate of return (IRR): 6% to 10% (based on historical returns)
• Hold period: five to seven years
• First dividend date: January 2024

The Sandbar

Photo courtesy of Arrived Homes

The Sandbar is a newly built vacation rental property in Panama City Beach, Florida. The home offers visitors an inground pool, an open floor plan, private fenced-in backyard and is a 10-minute walk to the beach. Panama City has become a family destination in recent years with several waterparks, amusement parks and entertainment in addition to the 27 miles of beachfront. 

Sandbar is expected to begin bookings through Airbnb and VRBO in August, with first investor dividends projected to be distributed in January 2024. The property will be managed by Roseus Hospitality, a group that manages over 50 rental properties in markets throughout the country.

• Minimum investment: $100
• Target IRR: 5.5% to 12% (based on historical returns)
• Market average daily rate: $587
• Market average monthly revenue: $12,032
• Market average monthly occupancy rate: 56%
• Hold period: five to 15 years

Check out more offerings from Arrived Homes.