Single Family Rentals
Single Family Rentals: Investor information
Sbrana Equity Group’s SFR (Single Family Rental) or small multifamily investment program specializes in acquiring semi-distressed properties in targeted markets for the purpose of renovating them into rental-ready homes. By purchasing properties below market value and adding value through renovations, we are able to create immediate equity in the properties. It is important to note that 100% of the equity in the properties belongs to the investor.
Investing in a single family rental property with Sbrana Equity Group typically requires a contribution ranging from $35,000 to $50,000 depending on the project. This investment amount covers all project expenses, including property acquisition, renovation, closing costs, holding costs, and other applicable expenses. The annual return on investment (ROI) is calculated by comparing the annual cash flow to the initial capital investment. It should be noted that the annual ROI is based solely on cash flow and does not take into account factors such as rent increases, mortgage paydown, property appreciation, or tax breaks. As a result, the "effective ROI" is generally higher.
Our SFR rentals offer a 10%-15% Annual ROI for investors
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More than $3000 in cash flow per year
Sbrana Equity Group’s Single Family investments primarily focuses on acquiring 2-4 bedroom homes located in middle class suburbs, which are typically occupied by blue collar workers. Rental rates for these properties typically range from $800 to $1,400, depending on the market. After accounting for all expenses, there is typically a cash flow of over $250 per month for investors. Payment to investors is made on a quarterly basis.
Project Example
We acquired this property (left) in September of 2019 for $57,500. It is a 3 bedroom/1 bath and it required about $20,000 of renovation work. Its current value is now around $115,000. The cash flow figures below are real figures for one of our investors, and they’re based on a $30,000 investor contribution.
Rent: $850
Mortgage (Property Taxes & Home Insurance Included): $435.25
Property Management Fee: $50
Remaining Monthly Cash Flow: $364.75
Annual Cash Flow: $4,377
Annual Return on Investment Percentage: 14.59%