January 2023 is the 4th month we’ve delivered 5%+ portfolio returns. The total dividends paid out to investors is $66,442.18. The annualized return rate is between 2.64% and 6.39%, with the portfolio average at 5.13%. Ark7 now has 20 properties in full operation and achieved 5%+ portfolio average returns for 4 consecutive months. Single Family S10 in Tampa, FL reported an outstanding 4.74% first-month return.
The Theme for 2023 is consistency
Ark7 is a platform for those who want to invest in real estate but don’t know where to start, and those who want the opportunity to earn passive income from their money. We are on this journey no matter how the market changes. We prioritize delivering consistent returns and provide the right level of clarity, transparency, and controls to help investors make financial decisions. On top of that, the team will continue to scale up and bring more quality offers to you – our technology allows us to manage more with constantly improving efficiency.
January 2023 Cash Distributions
Single Families & Townhomes
All Single Families and Townhomes are strategically positioned along the Sunbelt region and provide healthy cash flows to investors. Sunbelt accounted for 50% of the US population and 75% of population growth. The booming economy and excellent career opportunities have brought in a wave of young families, who are now driving growth in the housing markets. S1-S10 & T3-T4 are all under the “long-term family rental” strategy for high & stable returns. Historical annual compound appreciation is between 10% and 15%.
Philly-D2, T2, and Seattle-D1 are positioned in the heart of the downtown area and are within walking distance of the university campus and research facilities. We selected them because these specific locations are scarce resources, constantly in high demand, and are typically recession-proof. T1 (Airbnb) and M4 (14 units) are more seasonal or market impacted.
This Month’s Operating Highlights
Single Families & Townhomes
Net Operating Income reflects the health of overall rental operations.
Our major disclosure this month is on Austin, TX properties. The 2022 property tax bills are in – and the final amount charged is significantly over the initial estimation, especially for Austin-S2, and that impacted the bottom line. While working with our local partners to protest for tax adjustment, we are compensating $300 towards this month’s dividends from cash reserve to match up to the return estimation.
Other month-to-month variations are mainly due to one-time repairs and other operational events. They include but are not limited to 1) S5 – washer valve replacement; 2) S6 – sewer bill every other month; and 3) S8 – new shower glass replacement.
Among Multi-families, we want to inform Philadelphia-T2 investors that an overall structural improvement is currently underway to fix up the roof and exterior mural wall. It is an important improvement to both satisfy current tenant living conditions and also increase future appreciation potential. It does not impact your monthly dividends however will be a deduction (insurance adjusted) from cash reserves. We shall be able to update you with finalized numbers after the completion of this project.
For T1 investors, we continue to experience a slow season on occupancy and will monitor its short-term rental returns. In February we will switch all Philly properties to corporate management and evaluate T1’s long-term rental potential, both in an effort to stabilize and improve investor returns.
The occupancy rate for M4 remains below expectations. We have taken action to switch to a new management partner on the ground and will work closely with the local crew to backfill tenants.
Investors in the Ark7 communities came from very different backgrounds. Many use us as learning resources in addition to an investment tool to better understand how rental operations work. We appreciate your trust and in return will continue to share the right level of detail through both the property listing and the operating report.
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* Berkeley properties are exclusive to seed users with guaranteed return rates and are not included in the operating report to avoid confusion.