IRVINE, Calif., June 16, 2015 /PRNewswire/ -- HomeUnion, an online, real-estate investment management firm enabling value investing in single-family rental (SFR) properties announced today that it has added Cincinnati, Ohio to its list of active investment markets. Investors can now find pre-vetted, SFR investment properties in the Cincinnati market on the company's secure website.
Cincinnati was identified as a prime investment market by HomeUnion's proprietary model that factors in variables such as home prices, vacancies, historical income trends, employment, local economy and population growth among other criteria. Cincinnati offers investors favorable cap rates (the relationship between rental income and purchase price) and a positive economic outlook. A recent report from the Federal Reserve Bank of Cleveland noted, Cincinnati's "highly educated workforce, diverse economy, and the presence of multiple Fortune 500 Company headquarters positions the metro area for long-term growth."
"Because of low yields on traditional fixed income investments, individual investors are seeking alternative investment vehicles that are secure and produce cash, which is why many are seeking to add single-family rentals to their investment portfolios," said Don Ganguly, CEO of HomeUnion. "Because technology affords investors the ability to remotely invest and administer day-to-day property management through regional professionals, SFR investors can now approach the investment like any other part of their portfolio and focus on total returns and cash flow."
He added, "Cincinnati is a solid investment market because it combines favorable cap rates with a broad, growing economic base and diverse housing stock."
Once a new market has been identified, HomeUnion hires real estate professionals, who have intimate working knowledge of the neighborhoods, property values, and rent rates to verify the data used to identify good investments and be the local representatives for HomeUnion investors. HomeUnion has hired real estate veteran Jeff House, to fill this role in Cincinnati. House brings more than 20 years of professional experience in the Cincinnati real estate market, most recently with Penklor Property Management.
In addition to Cincinnati, HomeUnion is actively listing investment properties in:
- San Antonio
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 needed 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 last May.
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. 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.