Irvine, Calif. — October 19, 2015 — HomeUnion, an online real-estate investment management firm, enabling value investing in single-family rental (SFR) properties, announced today that it has added Charlotte, N.C., to its list of active investment markets and has just released a new investment report on that market. Investors can now find pre-vetted, SFR investment properties in the Charlotte market on the company’s secure website.
Charlotte was identified as a prime investment market by HomeUnion based on their proprietary model that considers variables such as home prices, vacancies, historical income trends, employment, local economy and population growth among other criteria. The area offers investors favorable cap rates (the relationship between rental income and purchase price) and a positive economic outlook, the company says.
The Charlotte area has seen two consecutive years of job improvement in all major employment sectors, and its job growth rate has outperformed the nation throughout the recession and recovery, according to HomeUnion’s Third Quarter Charlotte Market Report. The vacancy rate for 3-bedroom units is expected to fall by 100 basis points by year-end to 4.6 percent, and rents are projected to increase by 2.9 percent.
“Charlotte has a large, vibrant financial services sector, and 10 local universities, giving the city a solid and diverse economic base that makes it a rewarding market for the SFR investor,” said Don Ganguly, CEO of HomeUnion. “With thorough market, neighborhood and property research, the long-term investor in the Charlotte market can see higher yields than other cash-producing investments like bonds and CDs.”
Once a new market has been identified, HomeUnion hires real estate professionals who have an intimate working knowledge of the neighborhoods, property values and rent rates to verify the investment potential. HomeUnion has hired real estate veteran Gini Swancy to fill this role. The company, therefore, combines advanced analytics and local expertise before offering any SFR investment property on their website.
In addition to Charlotte, HomeUnion is actively listing investment properties in:
- Baton Rouge
- San Antonio
- Southern California
Properties in HomeUnion markets generally range in value from $65,000 to $225,000 and are expected to offer annual returns ranging from 6.5 to 14% − depending on leverage. Expected return on investment is based on final purchase price, the amount of financing used at closing, fees, rent and expense projections. Appreciation is not considered in the calculations.
HomeUnion’s investment site allows individuals to invest remotely in single-family real estate, an asset class that was previously not available to the individual investor. With HomeUnion’s guidance, investors choose a property from HomeUnion’s database of vetted investments that best fits their investment needs (income generation, growth or balanced). HomeUnion manages the acquisition for the owner and then handles the ongoing management of the property. The site has been operational since May 2014.
HomeUnion is an online real estate investment management firm, bringing value investing to the individual investor in single-family rental (SFR) properties. Based in Irvine, Calif., it provides all the services needed for individuals to invest remotely in SFR properties. The company uses a combination of data-driven proprietary analytics incorporating over 120M homes and 200,000 neighborhoods, delivering its solutions to an on-the-ground infrastructure currently serving 20 locations and expanding. HomeUnion’s role spans the lifecycle of the investment transaction: from identifying sound investments; handling all aspects of acquisition; maximizing income; protecting asset value; and selling it when the time comes.