The fractional real estate platform Arrived Homes announced new offerings for vacation rental homes available beginning March 13.
Fractional real estate makes it feasible for individual investors who don’t have the funds to buy entire properties to add real estate to their portfolios. Investing in real estate typically has a high financial barrier, making it difficult for average investors to take part. But with fractional investment, investors can own real estate and receive passive income without the hassle of property management and being a landlord.
With returns coming from rents received and potential capital gains when the property sells, fractional real estate continues to be a more attractive asset class for investors looking to diversify their portfolios.
According to data acquired from Zillow and AirDNA, vacation rentals generate up to 160% more revenue on average than traditional long-term rental properties.
The Coolbaugh is a large hosting house located in the Pocono Mountain region of Pennsylvania. With over 3,000 square feet, five bedrooms and four bathrooms, the house has the ability to host large families or groups of guests.
The Pocono Mountain region, a popular getaway from city and suburban life, receives nearly 30 million tourists annually. The northeastern Pennsylvania region is known for its numerous outdoor recreation activities and scenic views. There are over 2,400 square miles of forest, more than 150 lakes and rivers and over 185 miles of hiking trails. Swimming, boating, golfing and hiking are popular summer activities. Visitors enjoy skiing and snowboarding in the winter, and the fall months bring the foliage-observing crowd.
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A total of 71,329 shares are available for investment at a price of $10 per share making the total fund amount $713,289. The house was originally constructed in 1984 but will be undergoing updates and renovations. Amenities include a hot tub, game room, fire pit and access to the community center where there is a pool and sports courts.
- Minimum investment: $100
- Target internal rate of return (IRR): 6.1% (based on historical returns)
- Average daily rate: $808
- Average monthly revenue: $14,978
- Average monthly occupancy rate: 45%
- Hold period: five to 15 years
The investment window for The Coolbaugh will open on the Arrived Homes platform beginning March 13.
Check out more offerings available from Arrived Homes.
Photo courtesy of Arrived Homes
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