The Peanut

Single-Family Residential

bed: 3    bath: 2    sq ft: 1,356    year built: 2007

The Peanut

Single-Family Residential

bed: 3    bath: 2    sq ft: 1,356    year built: 2007

Investors

248

Purchase Price

$215,000

Property Leverage

68.37%

Monthly Rent

$1,395

The Peanut is an all electric and energy efficient home with beautiful fresh paint featured throughout. There are stainless steel appliances, a tile floor in the kitchen and open concept living and dinking room. To make things even better there is a soaking tub, large closet and a screened in porch. The property also has a large attached two car garage.

Address: 160 Roscommon Road, Tuscaloosa, AL 35405

Tenant Leasing Process

Preparing a home for the rental market is a multi-tiered process that begins as soon as the property is acquired. Our experienced investment team works closely with the local property managers to get it show-ready, determine optimal market rent, take high-quality photos and videos, market the rental through various online and offline channels, screen and thoroughly vet tenant applications, and finalize the lease terms. Below you can find more information regarding the current rental status, the expected timeline, and the rental income.

Rental Status

Rented

Anticipated First Dividend Date

July 2022

Timeline to Rent

The time needed to sign the first tenant lease is variable and can depend on several factors including seasonality and whether the property requires any sort of renovation. Historically the average time to lease has been 45 days and has ranged from a minimum of 7 days to over 90 days.

Investment Strategy Hypothetical Returns

Single-Family Residential

Annual Cash Flow
+
Appreciation
Investing with Arrived can generate returns in 2 ways:
  1. Annual cash flow from the rental income on each property. The property intends to pay out excess cash to investors quarterly.
  2. Annual appreciation returns from any changes in property value. Any appreciation returns net of disposition costs will be paid out upon the sale of the property.

Anticipated Annual Cash Flow

$16,740

Annual Rent

16.9% Gross Yield

-

$12,772

Operating, Financing, Legal, Asset Management Fee Expenses

$3,968

Cash Flow

÷

$99,190

Raise Amount


4%

Anticipated Annual Cash Flow

Annual Appreciation

Based on data from the Zillow Value Home Index (ZHVI) Single Family Homes Time Series, single-family homes have appreciated 4.5% per year on average for the last 20 years.

This data is based on a national average for Single-family homes in the 35th to 65th percentile range by home prices according to the Zillow Home Value Index. This is a national average and may not represent actual performance of this property's zipcode. In addition to property appreciation, equity returns also depend on real estate investment costs, hold period, and leverage. For more information, refer to the Offering Circular.

Use our returns calculator below to see how hypothetical property performance may impact your investment.

Investment Strategy Returns Calculator

Investment Amount


Annual Cash Flow

4.0%

Annual Appreciation

4.5%
10 Year U.S. Avg - 8.0%
20 Year U.S. Avg - 4.5%

Leverage
Years1357$1,000$1,200$1,400$1,600$1,800
+9.3%Annualized Total Return
1755.3927115979839

Hypothetical Value after Hold Period

Hypothetical Returns at Historic Appreciation Scenarios

Annualized Return %

Return at End of Hold Period

10 Year U.S. Avg - 8.0%

+15.0%

$2,475

20 Year U.S. Avg - 4.5%

+9.3%

$1,755

This calculator is for illustrative purposes only and displays a range of hypothetical investment outcomes based on the inputs you have provided. The actual investment outcomes will depend on a multitude of factors and cannot be determined in advance of the end of the investment period. Historical performance is not indicative of future results.

Our calculation assumes a 7 year hold period, property disposition costs, and an average annual net operating income increase of 3%. The 10 and 20 year averages provided are based on data from the ZHVI Single Family Homes Time Series, which is based on an average for single-family homes in the 35th to 65th percentile range by home prices.

Property Leverage & Volatility

The potential financial returns you can earn are often linked to the potential risk and volatility. Adding leverage or debt to properties can amplify the potential return in exchange for higher potential volatility.

Property Leverage

68.4%

Lower

Higher

Relative Volatility
Relative to comparable properties on the Arrived platform, this property may carry higher potential for equity returns than similar rental homes with no leverage, but also carries higher potential for volatility given the amount of leverage used on the property.

The Market

Real estate values and returns are highly dependent on location. In general, properties in more affordable markets will have higher cash flow (potential dividends), and properties in more expensive markets will have higher appreciation. Arrived strives to give investors options to choose how much they invest in appreciation markets, cash flow markets, or balanced markets.

The economy of the local city and market will dictate the potential returns of an investment. In general, some markets see high appreciation of home values, some have higher cash flow (dividends), and some have a mix of the two.

Tuscaloosa, AL

Tuscaloosa is one of the largest cities in Alabama and is home to The University of Alabama with over 33% of the population having bachelor's degree or higher. The city lives and breathes collegiate football, while maintaining a dense urban feel and great family friendly neighborhoods. In terms of accessibility, the city is surrounded by several highways, including Interstates 20 and 59; U.S. Routes 11, 43, and 82; and Alabama State Highways 69, 215, and 215. The city also houses Mercedes-Benz U.S. International (MBUSI), which is a Mercedes-Benz automobile manufacturing plant that proudly produces several models as well as various job opportunities.

Offering Details

The Offering Details provide a breakdown of the financials for a specific property offering. The Offering Details show the operating plan for the property, including how the Raise Amount proceeds will be used. For transparency, we also like to share a breakdown of the Arrived fees. And if you're interested in more information, we also link to other resource documents that go into more depth around each offering.

  • Property Purchase Price

    $215,000

  • Property Improvements & Cash Reserves

    $11,060

  • Closing Costs, Offering Costs & Holding Costs

    $8,716

  • Arrived Sourcing Fee (One-time)

    $11,400

Total Property Amount

$246,176

Property Loan Amount

$147,000

Financing: 68.37%Interest Rate: 4.75%


Equity Raised from Investors

$99,190

  • IPO Price Per Share

    $10

  • Total Shares

    9,919

Hold Period

5-7 years

Arrived Asset Management Fee

$248

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Common Questions

Arrived acquires rental properties into an LLC and sells shares in that LLC to the general public. Arrived then manages the day to day operations including finding tenants and completing repairs. Investors receive cash dividends from rental income each quarter and capture any property value appreciation.

Investing in Arrived rental properties can deliver returns to investors in two different ways:

1) Dividends from the rental income on each property; currently paid out to investors quarterly
2) Appreciation from the change in property value that will be realized at the end of the investment hold period

Learn More

We are currently focused on marketing the rental homes to prospective tenants and will email you when a new lease has been signed. Arrived's strategy for seeking tenants is focused on signing 2 year leases, achieving market rent, and thoroughly vetting applicants. Though it may take a bit more time to lease out the homes, we believe these standards provide our investors the best way to maximize returns over the long term.

Learn More

With real estate, it can be beneficial to invest in multiple properties and markets to achieve portfolio diversification. Diversifying your portfolio can be a good way to reduce exposure to risk from an individual property, tenant, or market forces.

Currently investors will need to plan to hold their shares for the full investment period until the property is sold and investors are paid their proportional proceeds from the sale. We anticipate establishing a mechanism to facilitate secondary trading in accordance with the rules and regulations of the U.S. Securities & Exchange Commission (SEC) as an option for liquidity during the investment period, however there can be no guarantee when that will be available. Please submit your email if you would like to be notified of future developments.

Arrived strives to give investors the opportunity to build wealth through real estate. Historically, real estate returns have been maximized when treated as a long-term investment over multiple years. Arrived property offerings typically have a 5 year minimum investment period before a property would be sold.

Disclaimer:

There is currently no public trading market for our Interests, and an active market may not develop or be sustained. There is no guarantee that appropriate regulatory approval to permit such secondary trading will ever be obtained. If an active public trading market for our securities does not develop or is not sustained, it may be difficult or impossible for you to resell your shares at any price before the end of the investment period. Even if a public market does develop, the market price could decline below the amount you paid for your shares, and there may be fees involved. Please refer to our offering circular for more details regarding potential distributions.

Don't know which property to choose?

No need to worry, all Arrived rental properties go through our rigorous selection process and have been pre-vetted for their investment potential by our acquisitions team (more info). Rather than focusing on selecting individual properties to invest in, many Arrived investors simply distribute their investment across several available properties to achieve portfolio diversification.

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Other Questions?
Visit our help center


100% shares purchased

$99,190

Invested

$99,190

Invested

248 investors
100% funded