HomeUnion is an update on “turnkey” rental property investing, offering managed rental properties in 11 different markets across the US.
- Website: https://homeunion.com
- Investment Types: Real Estate
- Security Types: Real Property
- Sectors: Residential Real Estate
- Minimum Investment:
- Open to all investors
- Open to all investors
- Free to search and browse listings and use calculators and return projections
- Integrated financing options (via subsidiary company)
- Integrated property management (optional)
- Buying a rental property typically requires at least 20% of the purchase price
- Even if using a property manager, direct property ownership inherently more of an active investment than indirect via crowdfunding
- HomeUnion currently operates in limited markets
- Selection is dependent on HomeUnion's sourcing (excludes MLS-listed properties, for example)
HomeUnion is an updated take on “turnkey” rental properties. They source the properties and handle all ongoing property management. The benefit to the investor is that it’s easy to browse and search for a rental property, and requires far less hands-on management then going out and finding, buying, and managing a rental property yourself. The main disadvantages are that you pay for that service, and overall you may be able to find a better deal by working directly with a broker or agent to find a property and/or managing the property yourself. HomeUnion provides handy calculators for estimating your monthly cash flow and overall return, and the projections include deductions for standard expenses like maintenance and vacancies.
Types of investments HomeUnion offers
Roofstock is an online marketplace for buying and selling single-family rental properties.
What do you get when investing with HomeUnion?
Roofstock can help you locate and purchase rental properties, but if you choose to invest you will be purchasing a physical property.
HomeUnion fee structure
Home Union charges an “Asset Acquisition Fee” of 3.5% of the purchase price when you buy a home through their platform, and then an ongoing “Asset Management” fee of 10.5% of the monthly rent (which is in line with other property management companies).
Potential returns and cashflow
The specific returns from any particular property will vary quite a bit on factors like maintenance expenses, rent amounts, and vacancy rates. Investability provides a number of useful calculators to analyze and model cash flow and return scenarios for each property.
Regulatory framework and due diligence expectations
Because you’re purchasing an actual property, rather than a security, the transaction is not governed by SEC rules as with most of the investment crowdfunding and online alternative investment platforms we review. Instead, a purchase via HomeUnion is subject to the particular laws of the state and county where the property is located.
While some other platforms offering rental properties provide a customized search on top of MLS listings, HomeUnion takes a more curated approach. From the HomeUnion FAQ:
We go through a rigorous due diligence and certification process to find the investment properties we recommend. We analyze over 50 criteria when selecting an investment location- such as crime, schools, employers, median income, rent to price ratio; availability of local resources for management and more. Furthermore, we deploy boots on the ground in the form of local managers; some have as many as 20+ years in their location to make sure the properties are sound and remain that way through the lifetime of your investment. There is no guarantee that any investment will reach any barometer of performance.
You may be able to invest in HomeUnion using a Self-Directed IRA or 401K. To learn more about using a Self-Directed retirement account for alternative investments, visit our friends at Rocket Dollar.