Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 05, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Reven Housing REIT, Inc. | |
Entity Central Index Key | 1,487,782 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | RVEN | |
Entity Common Stock, Shares Outstanding | 10,734,025 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Investments in single-family residential properties: | ||
Land | $ 9,238,642 | $ 8,579,550 |
Buildings and improvements | 43,127,053 | 39,419,038 |
Investments in real estate, gross | 52,365,695 | 47,998,588 |
Accumulated depreciation | (3,231,343) | (2,853,049) |
Investments in single-family residential properties, net | 49,134,352 | 45,145,539 |
Cash | 9,650,333 | 10,044,977 |
Rent and other receivables | 477,516 | 246,378 |
Escrow deposits | 65,537 | 105,500 |
Lease origination costs, net | 337,532 | 329,395 |
Deferred stock issuance costs | 40,666 | 0 |
Other assets, net | 496,064 | 195,020 |
Total Assets | 60,202,000 | 56,066,809 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued liabilities | 866,585 | 1,283,235 |
Resident security deposits | 595,360 | 552,698 |
Notes payable, net | 24,328,234 | 19,454,377 |
Total Liabilities | 25,790,179 | 21,290,310 |
Commitments and contingencies (Note 9) | ||
Stockholders' Equity | ||
Preferred stock, $.001 par value; 25,000,000 shares authorized; No shares issued or outstanding | 0 | 0 |
Common stock, $.001 par value; 100,000,000 shares authorized; 10,734,025 and 7,016,796 shares issued and outstanding at December 31, 2016 and 2015, respectively | 10,734 | 10,734 |
Additional paid-in capital | 41,677,465 | 41,677,465 |
Accumulated deficit | (7,276,378) | (6,911,700) |
Total Stockholders' Equity | 34,411,821 | 34,776,499 |
Total Liabilities and Stockholders' Equity | $ 60,202,000 | $ 56,066,809 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 10,734,025 | 7,016,796 |
Common stock, shares outstanding | 10,734,025 | 7,016,796 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue: | ||
Rental income | $ 1,741,309 | $ 1,378,763 |
Expenses: | ||
Property operating and maintenance | 515,560 | 401,236 |
Real estate taxes | 272,082 | 213,162 |
Depreciation and amortization | 441,725 | 325,416 |
General and administration | 701,331 | 501,024 |
Acquisition costs | 0 | 57,864 |
Total expenses | 1,930,698 | 1,498,702 |
Operating loss | (189,389) | (119,939) |
Other income (expenses): | ||
Net gain on sale of residential property | 38,973 | 0 |
Other income | 93,258 | 216 |
Interest expense | (307,520) | (258,157) |
Total other income (expenses), net | (175,289) | (257,941) |
Net loss | $ (364,678) | $ (377,880) |
Net loss per share | ||
(Basic and fully diluted) | $ (0.03) | $ (0.05) |
Weighted average number of common shares outstanding | 10,734,025 | 7,031,618 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash Flows From Operating Activities: | ||
Net loss | $ (364,678) | $ (377,880) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 441,725 | 325,416 |
Amortization of deferred loan fees | 32,617 | 30,327 |
Gain on disposal of real estate | (38,973) | 0 |
Changes in operating assets and liabilities: | ||
Rent and other receivables | (231,138) | (13,659) |
Other assets | (301,044) | (204,212) |
Accounts payable and accrued liabilities | (416,650) | (92,473) |
Resident security deposits | 42,662 | 15,441 |
Net cash used in operating activities | (835,479) | (317,040) |
Cash Flows From Investing Activities: | ||
Acquisitions of single-family residential properties | (4,297,427) | 0 |
Capital improvements for single-family residential properties | (147,056) | (96,721) |
Proceeds from disposition of single-family residential property | 110,122 | 0 |
Lease origination costs | (65,342) | (22,292) |
Refunds of escrow deposits | 39,963 | 0 |
Net cash used in investing activities | (4,359,740) | (119,013) |
Cash Flows From Financing Activities: | ||
Proceeds from note payable | 5,020,000 | 0 |
Payments of notes payable | (110,038) | 0 |
Payment of loan fees | (68,721) | 0 |
Payments of deferred stock issuance costs | (40,666) | (78,087) |
Net cash provided by (used in) financing activities | 4,800,575 | (78,087) |
Net Decrease In Cash | (394,644) | (514,140) |
Cash at the Beginning of the Period | 10,044,977 | 2,140,298 |
Cash at the End of the Period | 9,650,333 | 1,626,158 |
Supplemental Disclosure: | ||
Cash paid for interest | $ 251,172 | $ 225,935 |
ORGANIZATION AND OPERATION
ORGANIZATION AND OPERATION | 3 Months Ended |
Mar. 31, 2017 | |
Organization And Operation [Abstract] | |
Nature of Operations [Text Block] | NOTE 1. ORGANIZATION AND OPERATION Reven Housing REIT, Inc. is a Maryland corporation (Reven Housing REIT, Inc., which along with its wholly-owned subsidiaries, are also referred to herein collectively as the “Company”) which acquires portfolios of occupied and rented single-family residential properties throughout the United States with the objective of receiving income from rental property activity and future profits from the sale of rental property at appreciated values. As of March 31, 2017, the Company owned 681 single-family homes in the Houston, Jacksonville, Memphis and Atlanta metropolitan areas. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”), as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”), and the rules and regulations of the Securities Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the 2016 Annual Report on Form 10-K filed with the SEC on March 24, 2017. The results of operations for the period ended March 31, 2017 are not necessarily indicative of the operating results for the full year. The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Reven Housing REIT OP, L.P., Reven Housing GP, LLC, Reven Housing REIT TRS, LLC, Reven Housing Georgia, LLC, Reven Housing Texas, LLC, Reven Housing Texas 2, LLC, Reven Housing Florida, LLC, Reven Housing Florida 2, LLC, and Reven Housing Tennessee, LLC. All significant intercompany accounts and transactions have been eliminated in consolidation. The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet dates and reported amounts of revenues and expenses for the periods presented. Accordingly, actual results could differ from those estimates. The carrying value of the Company’s financial instruments, as reported in the accompanying consolidated balance sheets, approximates fair value due to their short term nature. The Company’s short term financial instruments consist of cash, rents and other receivables, escrow deposits, accounts payable and accrued liabilities, and resident security deposits. The carrying value of the Company’s notes payable, as reported in the accompanying consolidated balance sheets, approximates fair value due to the fact that their interest rate, security, and payment terms are similar to other debt instruments currently being issued. Prior to January 1, 2017, the Company accounted for its investments in single-family residential properties as business combinations under the guidance of ASC Topic 805, Business Combinations In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business Building improvements and buildings are depreciated over estimated useful lives of approximately 10 27.5 The Company assesses its investments in single-family residential properties for impairment whenever events or changes in business circumstances indicate that carrying amounts of the assets may not be fully recoverable. When such events occur, management determines whether there has been impairment by comparing the asset’s carrying value with its fair value. Should impairment exist, the asset is written down to its estimated fair value. The Company did not recognize any impairment losses for the three months ended March 31, 2017 and 2016. The Company maintains its cash at quality financial institutions. The combined account balances at one or more institutions typically exceed the federal insurance coverage and thus there is a concentration of credit risk related to amounts on deposit in excess of available federal insurance coverage. The Company believes that the risk is not significant, as the Company does not anticipate the financial institutions’ non-performance. Rents and other receivables represent the amount of rent receivables, security deposits and net rental funds which are held by the property managers on behalf of the Company, net of any allowance for amounts deemed uncollectible. The Company has not recognized any allowance for doubtful accounts as of March 31, 2017 and December 31, 2016. Escrow deposits include refundable and non-refundable cash and earnest money on deposit with third parties for future property purchases. As of March 31, 2017, the Company had offers accepted to purchase single-family residential properties for an aggregate amount of approximately $ 5,886,000 65,537 Costs incurred in the placement of the Company’s debt are deferred and amortized using the effective interest method over the term of the loans as a component of interest expense on the consolidated statements of operations, and presented as an offset to notes payable on the consolidated balance sheet. Deferred stock issuance costs represent amounts paid for legal, consulting, and other offering expenses in conjunction with the future raising of additional capital to be completed within one year. These costs are netted against additional paid-in capital as a cost of the stock issuance upon closing of the respective stock placement. Resident security deposits represent amounts deposited by tenants at the inception of the lease. As of March 31, 2017 and December 31, 2016, the Company had $ 595,360 552,698 Residential properties are leased to tenants under short term rental agreements of generally one year and revenue is recognized over the lease term on a straight-line basis. The Company has reclassified certain prior period amounts to conform to the current period’s presentation. The Company has elected to be taxed as a real estate investment trust (“REIT”), as defined in the Internal Revenue Code. Accordingly, the Company does not expect to be subject to federal income tax, provided that it continues to qualify as a REIT and distributions to the stockholders equal or exceed REIT taxable income. Qualification and taxation as a REIT depends upon the Company’s ability to meet the various qualification tests imposed under the Internal Revenue Code related to the percentage of income that are earned from specified sources, the percentage of assets that fall within specified categories, the diversity of capital stock ownership, and the percentage of earnings that are distributed. Accordingly, no assurance can be given that the Company will be organized or be able to operate in a manner to qualify or remain qualified as a REIT. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal and state income tax (including any applicable alternative minimum tax) on its taxable income at regular corporate tax rates, and the Company may be ineligible to qualify as a REIT for four subsequent tax years. Even if the Company qualifies as a REIT, it may be subject to certain state or local income taxes. During 2012, the Company established the 2012 Incentive Compensation Plan, which was subsequently amended and restated in December 2013 (“2012 Plan”). The 2012 Plan allows for the grant of options and other awards representing up to 1,650,000 Under the 2012 Plan, options may be granted at an exercise price greater than or equal to the market value at the date of the grant, for owners of 10% or more of the voting shares, at an exercise price of not less than 110% of the market value. Awards are exercisable over a period of time as determined by a committee designated by the Board of Directors, but in no event, longer than ten years. A total of 496,359 shares have been issued under the 2012 plan as of March 31, 2017. Net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any) are not included in the computation if the effect would be anti-dilutive and would increase earnings or decrease loss per share. For the three months ended March 31, 2017 and 2016, potentially dilutive securities excluded from the calculations were 263,588 shares issuable upon exercise of outstanding warrants granted in prior years. In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows, Restricted Cash |
INVESTMENTS IN SINGLE-FAMILY RE
INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES | 3 Months Ended |
Mar. 31, 2017 | |
Residential Homes [Abstract] | |
Residential Homes [Text Block] | NOTE 3. INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES The following table summarizes the Company’s investments in single-family residential properties. Investments in Single-Family Number Buildings and Residential of Homes Land Improvements Properties, Gross Total at December 31, 2016 624 $ 8,579,550 $ 39,419,038 $ 47,998,588 Purchases, improvements, sales during 2017: Houston, TX - - 47,036 47,036 Jacksonville, FL - - 62,006 62,006 Jacksonville, FL (sale) (1) (10,908) (66,468) (77,376) Memphis, TN 20 400,000 1,243,814 1,643,814 Atlanta, GA 38 270,000 2,421,627 2,691,627 Total at March 31, 2017 681 $ 9,238,642 $ 43,127,053 $ 52,365,695 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 3 Months Ended |
Mar. 31, 2017 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 4. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES At March 31, 2017 and December 31, 2016, accounts payable and accrued liabilities consisted of the following: 2017 2016 Accounts payable $ 100,234 $ 248,456 Real estate taxes payable 286,560 667,811 Accrued compensation, board fees and other 389,592 300,500 Interest payable 90,199 66,468 $ 866,585 $ 1,283,235 |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 5. NOTES PAYABLE On January 31, 2017, Reven Housing Texas 2, LLC, a wholly-owned subsidiary of the Company, received loan proceeds and issued a promissory note in the principal amount of $ 5,020,000 31,759 4.50 As of March 31, 2017, the other four notes mentioned below were payable to another regional bank and incurred interest at a rate of 1.00 4.5 25 2 2017 2016 Note Reven Housing Texas, LLC $ 7,460,535 $ 7,502,504 Reven Housing Texas 2, LLC 5,006,439 - Reven Housing Tennessee, LLC 3,887,321 3,908,829 Reven Housing Florida, LLC 3,493,794 3,526,794 Reven Housing Florida 2, LLC 4,875,898 4,875,898 24,723,987 19,814,025 Less deferred loan fees, net (395,753) (359,648) Notes payable, net $ 24,328,234 $ 19,454,377 Costs incurred in the placement of the Company’s debt are deferred and amortized using the effective interest method over the term of the loans as a component of interest expense on the consolidated statements of operations. The amount of unamortized fees are deducted from the remaining principal amount owed on the corresponding notes payable. Unamortized deferred loan costs and fees totaled $ 395,753 359,648 During the three months ended March 31, 2017 and 2016, the Company incurred $ 307,520 258,157 32,617 30,327 |
STOCKHOLDERS_ EQUITY AND STOCK
STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 6. STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION On October 16, 2014, the Company issued 425,000 106,250 The Company has outstanding warrants that allow holders to purchase up to 263,588 4.00 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 7. INCOME TAXES The Company has elected REIT status effective for the year ended December 31, 2016. The Company is generally not subject to income taxes assuming it complies with the specific distribution rules applicable to REITs. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 8. RELATED PARTY TRANSACTIONS The Company sub-leased office space on a month-to-month basis from Reven Capital, LLC, which is wholly-owned by Chad M. Carpenter, a shareholder of the Company and its Chief Executive Officer, through January 31, 2016. This arrangement was terminated upon the Company relocating its office space and signing a new lease agreement with an unrelated party. Rental payments under this sub-lease totaled $ 3,000 500 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 9. COMMITMENTS AND CONTINGENCIES Legal and Regulatory The Company is subject to potential liability under laws and government regulations and various claims and legal actions arising in the ordinary course of the Company’s business. Liabilities are established for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts established for those claims. Based on information currently available, management is not aware of any legal or regulatory claims that would have a material effect on the Company’s consolidated financial statements and, therefore, no accrual has been recorded as of the three months ended March 31, 2017 and 2016. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 10. SUBSEQUENT EVENTS Recent Real Estate Investment Acquisition On April 19, 2017, a wholly owned subsidiary of the Company purchased a portfolio of 68 single-family homes, located in the Birmingham, Alabama metropolitan area for approximately $5,320,000 including closing and acquisition costs. On April 24, 2017, a wholly owned subsidiary of the Company purchased 4 single-family homes located in the Memphis, Tennessee metropolitan area for approximately $300,000 including closing and acquisition costs. |
BASIS OF PRESENTATION AND SIG16
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”), as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”), and the rules and regulations of the Securities Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the 2016 Annual Report on Form 10-K filed with the SEC on March 24, 2017. The results of operations for the period ended March 31, 2017 are not necessarily indicative of the operating results for the full year. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Reven Housing REIT OP, L.P., Reven Housing GP, LLC, Reven Housing REIT TRS, LLC, Reven Housing Georgia, LLC, Reven Housing Texas, LLC, Reven Housing Texas 2, LLC, Reven Housing Florida, LLC, Reven Housing Florida 2, LLC, and Reven Housing Tennessee, LLC. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet dates and reported amounts of revenues and expenses for the periods presented. Accordingly, actual results could differ from those estimates. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Financial Instruments The carrying value of the Company’s financial instruments, as reported in the accompanying consolidated balance sheets, approximates fair value due to their short term nature. The Company’s short term financial instruments consist of cash, rents and other receivables, escrow deposits, accounts payable and accrued liabilities, and resident security deposits. The carrying value of the Company’s notes payable, as reported in the accompanying consolidated balance sheets, approximates fair value due to the fact that their interest rate, security, and payment terms are similar to other debt instruments currently being issued. |
Property Acquisitions [Policy Text Block] | Investments in Single-Family Residential Properties Prior to January 1, 2017, the Company accounted for its investments in single-family residential properties as business combinations under the guidance of ASC Topic 805, Business Combinations In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business Building improvements and buildings are depreciated over estimated useful lives of approximately 10 27.5 The Company assesses its investments in single-family residential properties for impairment whenever events or changes in business circumstances indicate that carrying amounts of the assets may not be fully recoverable. When such events occur, management determines whether there has been impairment by comparing the asset’s carrying value with its fair value. Should impairment exist, the asset is written down to its estimated fair value. The Company did not recognize any impairment losses for the three months ended March 31, 2017 and 2016. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash The Company maintains its cash at quality financial institutions. The combined account balances at one or more institutions typically exceed the federal insurance coverage and thus there is a concentration of credit risk related to amounts on deposit in excess of available federal insurance coverage. The Company believes that the risk is not significant, as the Company does not anticipate the financial institutions’ non-performance. |
Advances to Property Manager [Policy Text Block] | Rents and Other Receivables Rents and other receivables represent the amount of rent receivables, security deposits and net rental funds which are held by the property managers on behalf of the Company, net of any allowance for amounts deemed uncollectible. The Company has not recognized any allowance for doubtful accounts as of March 31, 2017 and December 31, 2016. |
Escrow Deposits And Prepaid Expense [Policy Text Block] | Escrow Deposits Escrow deposits include refundable and non-refundable cash and earnest money on deposit with third parties for future property purchases. As of March 31, 2017, the Company had offers accepted to purchase single-family residential properties for an aggregate amount of approximately $ 5,886,000 65,537 |
Deferred Loan Fees, Policy [Policy Text Block] | Deferred Loan Fees Costs incurred in the placement of the Company’s debt are deferred and amortized using the effective interest method over the term of the loans as a component of interest expense on the consolidated statements of operations, and presented as an offset to notes payable on the consolidated balance sheet. |
Deferred Stock Issuance Costs [Policy Text Block] | Deferred Stock Issuance Costs Deferred stock issuance costs represent amounts paid for legal, consulting, and other offering expenses in conjunction with the future raising of additional capital to be completed within one year. These costs are netted against additional paid-in capital as a cost of the stock issuance upon closing of the respective stock placement. |
Security Deposits [Policy Text Block] | Resident Security Deposits Resident security deposits represent amounts deposited by tenants at the inception of the lease. As of March 31, 2017 and December 31, 2016, the Company had $ 595,360 552,698 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Residential properties are leased to tenants under short term rental agreements of generally one year and revenue is recognized over the lease term on a straight-line basis. |
Reclassification, Policy [Policy Text Block] | Reclassifications The Company has reclassified certain prior period amounts to conform to the current period’s presentation. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company has elected to be taxed as a real estate investment trust (“REIT”), as defined in the Internal Revenue Code. Accordingly, the Company does not expect to be subject to federal income tax, provided that it continues to qualify as a REIT and distributions to the stockholders equal or exceed REIT taxable income. Qualification and taxation as a REIT depends upon the Company’s ability to meet the various qualification tests imposed under the Internal Revenue Code related to the percentage of income that are earned from specified sources, the percentage of assets that fall within specified categories, the diversity of capital stock ownership, and the percentage of earnings that are distributed. Accordingly, no assurance can be given that the Company will be organized or be able to operate in a manner to qualify or remain qualified as a REIT. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal and state income tax (including any applicable alternative minimum tax) on its taxable income at regular corporate tax rates, and the Company may be ineligible to qualify as a REIT for four subsequent tax years. Even if the Company qualifies as a REIT, it may be subject to certain state or local income taxes. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Incentive Compensation Plan During 2012, the Company established the 2012 Incentive Compensation Plan, which was subsequently amended and restated in December 2013 (“2012 Plan”). The 2012 Plan allows for the grant of options and other awards representing up to 1,650,000 Under the 2012 Plan, options may be granted at an exercise price greater than or equal to the market value at the date of the grant, for owners of 10% or more of the voting shares, at an exercise price of not less than 110% of the market value. Awards are exercisable over a period of time as determined by a committee designated by the Board of Directors, but in no event, longer than ten years. A total of 496,359 shares have been issued under the 2012 plan as of March 31, 2017. |
Earnings Per Share, Policy [Policy Text Block] | Net Loss Per Share Net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any) are not included in the computation if the effect would be anti-dilutive and would increase earnings or decrease loss per share. For the three months ended March 31, 2017 and 2016, potentially dilutive securities excluded from the calculations were 263,588 shares issuable upon exercise of outstanding warrants granted in prior years. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows, Restricted Cash |
INVESTMENTS IN SINGLE-FAMILY 17
INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Residential Homes [Abstract] | |
Schedule of Real Estate Properties [Table Text Block] | The homes are generally leased to individual tenants under leases with terms of one year or less. Investments in Single-Family Number Buildings and Residential of Homes Land Improvements Properties, Gross Total at December 31, 2016 624 $ 8,579,550 $ 39,419,038 $ 47,998,588 Purchases, improvements, sales during 2017: Houston, TX - - 47,036 47,036 Jacksonville, FL - - 62,006 62,006 Jacksonville, FL (sale) (1) (10,908) (66,468) (77,376) Memphis, TN 20 400,000 1,243,814 1,643,814 Atlanta, GA 38 270,000 2,421,627 2,691,627 Total at March 31, 2017 681 $ 9,238,642 $ 43,127,053 $ 52,365,695 |
ACCOUNTS PAYABLE AND ACCRUED 18
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | At March 31, 2017 and December 31, 2016, accounts payable and accrued liabilities consisted of the following: 2017 2016 Accounts payable $ 100,234 $ 248,456 Real estate taxes payable 286,560 667,811 Accrued compensation, board fees and other 389,592 300,500 Interest payable 90,199 66,468 $ 866,585 $ 1,283,235 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | A summary of the Company’s notes payable as of March 31, 2017 and December 31, 2016 is as follows: 2017 2016 Note Reven Housing Texas, LLC $ 7,460,535 $ 7,502,504 Reven Housing Texas 2, LLC 5,006,439 - Reven Housing Tennessee, LLC 3,887,321 3,908,829 Reven Housing Florida, LLC 3,493,794 3,526,794 Reven Housing Florida 2, LLC 4,875,898 4,875,898 24,723,987 19,814,025 Less deferred loan fees, net (395,753) (359,648) Notes payable, net $ 24,328,234 $ 19,454,377 |
BASIS OF PRESENTATION AND SIG20
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2012 | |
Accounting Policies [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 263,588 | 263,588 | ||
Security Deposit | $ 595,360 | $ 552,698 | ||
Earnest Money Deposits | 65,537 | |||
Offers Accepted to Purchase Residential Properties, Aggregate Amount | $ 5,886,000 | |||
Buildings and Improvements [Member] | Minimum [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 10 years | |||
Buildings and Improvements [Member] | Maximum [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 27 years 6 months | |||
Incentive Compensation Plan 2012 [Member] | ||||
Accounting Policies [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,650,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Description | Under the 2012 Plan, options may be granted at an exercise price greater than or equal to the market value at the date of the grant, for owners of 10% or more of the voting shares, at an exercise price of not less than 110% of the market value. Awards are exercisable over a period of time as determined by a committee designated by the Board of Directors, but in no event, longer than ten years. |
INVESTMENTS IN SINGLE-FAMILY 21
INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES (Details) | 3 Months Ended | |
Mar. 31, 2017USD ($)Number | Dec. 31, 2016Number | |
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | Number | 681 | 624 |
Land [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment | $ 8,579,550 | |
Property Plant and Equipment | 9,238,642 | |
Building Improvements [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment | 39,419,038 | |
Property Plant and Equipment | 43,127,053 | |
Investments In Single-Family Residential Properties [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment | 47,998,588 | |
Property Plant and Equipment | $ 52,365,695 | |
Houston, TX [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | Number | 0 | |
Houston, TX [Member] | Land [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment, Additions | $ 0 | |
Houston, TX [Member] | Building Improvements [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment, Additions | 47,036 | |
Houston, TX [Member] | Investments In Single-Family Residential Properties [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment, Additions | $ 47,036 | |
Jacksonville, FL [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | Number | 0 | |
Jacksonville, FL [Member] | Land [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment, Additions | $ 0 | |
Jacksonville, FL [Member] | Building Improvements [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment, Additions | 62,006 | |
Jacksonville, FL [Member] | Investments In Single-Family Residential Properties [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment, Additions | $ 62,006 | |
Memphis, TN [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | Number | 20 | |
Memphis, TN [Member] | Land [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment, Additions | $ 400,000 | |
Memphis, TN [Member] | Building Improvements [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment, Additions | 1,243,814 | |
Memphis, TN [Member] | Investments In Single-Family Residential Properties [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment, Additions | $ 1,643,814 | |
Atlanta, GA [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | Number | 38 | |
Atlanta, GA [Member] | Land [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment, Additions | $ 270,000 | |
Atlanta, GA [Member] | Building Improvements [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment, Additions | 2,421,627 | |
Atlanta, GA [Member] | Investments In Single-Family Residential Properties [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment, Additions | $ 2,691,627 | |
Jacksonville, Fl sale [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | Number | (1) | |
Jacksonville, Fl sale [Member] | Land [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment, Disposal | $ (10,908) | |
Jacksonville, Fl sale [Member] | Building Improvements [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment, Disposal | (66,468) | |
Jacksonville, Fl sale [Member] | Investments In Single-Family Residential Properties [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment, Disposal | $ (77,376) |
ACCOUNTS PAYABLE AND ACCRUED 22
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts Payable And Accrued Expenses [Line Items] | ||
Accounts payable | $ 100,234 | $ 248,456 |
Real estate taxes payable | 286,560 | 667,811 |
Accrued compensation, board fees and other | 389,592 | 300,500 |
Interest payable | 90,199 | 66,468 |
Accounts payable and accrued liabilities | $ 866,585 | $ 1,283,235 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Note | ||
Notes Payable, Total | $ 24,723,987 | $ 19,814,025 |
Less deferred loan fees, net | (395,753) | (359,648) |
Notes payable, net | 24,328,234 | 19,454,377 |
Reven Housing Texas, LLC [Member] | ||
Note | ||
Notes Payable, Total | 7,460,535 | 7,502,504 |
Reven Housing Tennessee, LLC [Member] | ||
Note | ||
Notes Payable, Total | 3,887,321 | 3,908,829 |
Reven Housing Florida, LLC [Member] | ||
Note | ||
Notes Payable, Total | 3,493,794 | 3,526,794 |
Reven Housing Florida 2, LLC [Member] | ||
Note | ||
Notes Payable, Total | 4,875,898 | 4,875,898 |
Reven Housing Texas 2 LLC [Member] | ||
Note | ||
Notes Payable, Total | $ 5,006,439 | $ 0 |
NOTES PAYABLE (Details Textual)
NOTES PAYABLE (Details Textual) - USD ($) | Apr. 04, 2017 | Jan. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 |
Notes Payable [Line Items] | |||||
Interest Expense, Debt | $ 307,520 | $ 258,157 | |||
Amortization of Financing Costs | 32,617 | $ 30,327 | |||
Debt Instrument, Periodic Payment, Total | $ 31,579 | ||||
Debt Issuance Costs, Net | $ 395,753 | $ 359,648 | |||
Notes Payable [Member] | |||||
Notes Payable [Line Items] | |||||
Debt Instrument, Interest Rate Terms | interest at a rate of 1.00% over the prime rate (interest rate was 5.00% per annum at March 31, 2017) | ||||
Debt Issuance Costs, Net | $ 395,753 | $ 359,648 | |||
Prepayment Penalty Percentage For Following Years | 1.00% | ||||
Notes Payable [Member] | Subsequent Event [Member] | |||||
Notes Payable [Line Items] | |||||
Debt Instrument, Maturity Date | Apr. 5, 2020 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||
Prepayment Penalty Percentage First Year | 2.00% | ||||
Debt Instrument, Term | 25 years | ||||
Promissory Note [Member] | |||||
Notes Payable [Line Items] | |||||
Debt Instrument, Maturity Date | Jan. 31, 2022 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||
Debt Instrument, Face Amount | $ 5,020,000 |
STOCKHOLDERS' EQUITY AND STOCK
STOCKHOLDERS' EQUITY AND STOCK COMPENSATION (Details Textual) - $ / shares | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Oct. 16, 2014 | Mar. 31, 2017 | Dec. 31, 2016 | |
Incentive Compensation Plan 2012 [Member] | |||
STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION [Line Items] | |||
Stock Issued During Period, Shares, Issued for Services | 425,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 106,250 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 318,750 | ||
Private Placement [Member] | |||
STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION [Line Items] | |||
Warrants To Purchase Common Stock | 263,588 | ||
Share Price | $ 4 | ||
Investment Warrants Expiration Date | Sep. 27, 2018 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Operating Leases, Rent Expense | $ 500 | |
Operating Leases, Rent Expense, Sublease Rentals | $ 1,500 | 1,000 |
Chief Executive Officer [Member] | ||
Related Party Transaction [Line Items] | ||
Operating Leases, Rent Expense | $ 3,000 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - Subsequent Event [Member] - USD ($) | 1 Months Ended | |
Apr. 24, 2017 | Apr. 19, 2017 | |
Memphis [Member] | ||
Subsequent Event [Line Items] | ||
Payments to Acquire Real Estate | $ 300,000 | |
Alabma AL [Member] | ||
Subsequent Event [Line Items] | ||
Payments to Acquire Real Estate | $ 5,320,000 |