Document And Entity Information
Document And Entity Information | 3 Months Ended |
Mar. 31, 2017 | |
Document Information [Line Items] | |
Entity Registrant Name | Reven Housing REIT, Inc. |
Trading Symbol | RVEN |
Entity Central Index Key | 1,487,782 |
Entity Filer Category | Smaller Reporting Company |
Document Type | S-11/A |
Amendment Flag | true |
Document Period End Date | Mar. 31, 2017 |
Amendment Description | To amend previous S-11 filed on May 5, 2017 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Investments in single-family residential properties: | |||
Land | $ 9,238,642 | $ 8,579,550 | $ 6,761,350 |
Buildings and improvements | 43,127,053 | 39,419,038 | 31,744,657 |
Investments in real estate, gross | 52,365,695 | 47,998,588 | 38,506,007 |
Accumulated depreciation | (3,231,343) | (2,853,049) | (1,630,873) |
Investments in single-family residential properties, net | 49,134,352 | 45,145,539 | 36,875,134 |
Cash | 9,650,333 | 10,044,977 | 2,140,298 |
Rent and other receivables | 477,516 | 246,378 | 239,928 |
Escrow deposits | 65,537 | 105,500 | 143,901 |
Lease origination costs, net | 337,532 | 329,395 | 218,789 |
Deferred stock issuance costs | 40,666 | 0 | 742,757 |
Other assets,net | 496,064 | 195,020 | 96,318 |
Total Assets | 60,202,000 | 56,066,809 | 40,457,125 |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable and accrued liabilities | 866,585 | 1,283,235 | 1,143,438 |
Resident security deposits | 595,360 | 552,698 | 435,267 |
Notes payable, net | 24,328,234 | 19,454,377 | 19,409,454 |
Total Liabilities | 25,790,179 | 21,290,310 | 20,988,159 |
Commitments and contingencies | |||
Stockholders' Equity | |||
Preferred stock, $.001 par value; 25,000,000 shares authorized; No shares issued or outstanding | 0 | 0 | 0 |
Common stock, $.001 par value; 100,000,000 shares authorized; 10,734,025 and 7,016,796 shares issued and outstanding at March 31, 2017, December 31, 2016 and 2015, respectively | 10,734 | 10,734 | 7,017 |
Additional paid-in capital | 41,677,465 | 41,677,465 | 24,601,295 |
Accumulated deficit | (7,276,378) | (6,911,700) | (5,139,346) |
Total Stockholders' Equity | 34,411,821 | 34,776,499 | 19,468,966 |
Total Liabilities and Stockholders' Equity | $ 60,202,000 | $ 56,066,809 | $ 40,457,125 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued | 10,734,025 | 10,734,025 | 7,016,796 |
Common stock, shares outstanding | 10,734,025 | 10,734,025 | 7,016,796 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | ||||
Rental income | $ 1,741,309 | $ 1,378,763 | $ 5,648,014 | $ 4,934,201 |
Expenses: | ||||
Property operating and maintenance | 515,560 | 401,236 | 1,684,431 | 1,552,051 |
Real estate taxes | 272,082 | 213,162 | 875,641 | 753,994 |
Depreciation and amortization | 441,725 | 325,416 | 1,334,555 | 1,162,312 |
General and administration | 701,331 | 501,024 | 1,921,244 | 2,060,327 |
Noncash share-based compensation | 425,000 | 113,045 | ||
Acquisition costs | 0 | 57,864 | 147,099 | 375,780 |
Total expenses | 1,930,698 | 1,498,702 | 6,387,970 | 6,017,509 |
Operating loss | (189,389) | (119,939) | (739,956) | (1,083,308) |
Other income (expenses): | ||||
Net gain on sale of residential property | 38,973 | 0 | ||
Other income | 93,258 | 216 | 4,957 | 31,447 |
Interest expense | (307,520) | (258,157) | (1,037,355) | (744,000) |
Total other income (expenses), net | (175,289) | (257,941) | (1,032,398) | (712,553) |
Net loss | $ (364,678) | $ (377,880) | $ (1,772,354) | $ (1,795,861) |
Net loss per share | ||||
(Basic and fully diluted) | $ (0.03) | $ (0.05) | $ (0.22) | $ (0.26) |
Weighted average number of common shares outstanding | 10,734,025 | 7,031,618 | 8,197,073 | 7,016,796 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
Balances at Dec. 31, 2014 | $ 21,264,827 | $ 7,017 | $ 24,601,295 | $ (3,343,485) |
Balances (in shares) at Dec. 31, 2014 | 7,016,796 | |||
Net loss | (1,795,861) | $ 0 | 0 | (1,795,861) |
Balances at Dec. 31, 2015 | 19,468,966 | $ 7,017 | 24,601,295 | (5,139,346) |
Balances (in shares) at Dec. 31, 2015 | 7,016,796 | |||
Stock issued under share-based compensation plans | 113,045 | $ 22 | 113,023 | 0 |
Stock issued under share-based compensation plans (in shares) | 22,609 | |||
Noncash share-based compensation | 425,000 | $ 0 | 425,000 | 0 |
Proceeds from issuances of shares, net of issuance costs | 16,541,842 | $ 3,695 | 16,538,147 | 0 |
Proceeds from issuances of shares, net of issuance costs (in shares) | 3,694,620 | |||
Net loss | (1,772,354) | $ 0 | 0 | (1,772,354) |
Balances at Dec. 31, 2016 | 34,776,499 | $ 10,734 | $ 41,677,465 | $ (6,911,700) |
Balances (in shares) at Dec. 31, 2016 | 10,734,025 | |||
Net loss | (364,678) | |||
Balances at Mar. 31, 2017 | $ 34,411,821 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows From Operating Activities: | ||||
Net loss | $ (364,678) | $ (377,880) | $ (1,772,354) | $ (1,795,861) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Depreciation and amortization | 441,725 | 325,416 | 1,334,555 | 1,162,312 |
Noncash share-based compensation | 425,000 | 113,045 | ||
Amortization of deferred loan fees | 32,617 | 30,327 | 121,308 | 96,640 |
Gain on disposal of real estate | (38,973) | 0 | 0 | (26,382) |
Changes in operating assets and liabilities: | ||||
Rent and other receivables | (231,138) | (13,659) | (6,450) | (82,698) |
Property tax and insurance reserves | 0 | 260,123 | ||
Other assets | (301,044) | (204,212) | (98,702) | 28,463 |
Accounts payable and accrued liabilities | (416,650) | (92,473) | 252,842 | 312,231 |
Resident security deposits | 42,662 | 15,441 | 117,431 | 129,263 |
Net cash used in operating activities | (835,479) | (317,040) | 373,630 | 197,136 |
Cash Flows From Investing Activities: | ||||
Acquisitions of single-family residential properties | (4,297,427) | 0 | (8,986,000) | (8,843,168) |
Capital improvements for single-family residential properties | (147,056) | (96,721) | (506,581) | (323,584) |
Proceeds from disposition of single-family residential property | 110,122 | 0 | 0 | 69,875 |
Lease origination costs | (65,342) | (22,292) | (222,985) | (172,690) |
Escrow deposits | 38,401 | (47,418) | ||
Refunds of escrow deposits | 39,963 | 0 | ||
Net cash used in investing activities | (4,359,740) | (119,013) | (9,677,165) | (9,316,985) |
Cash Flows From Financing Activities: | ||||
Proceeds from issuance of shares | 18,473,100 | 0 | ||
Proceeds from notes payable | 5,020,000 | 0 | 0 | 8,402,880 |
Payments of notes payable | (110,038) | 0 | (76,385) | (34,610) |
Payment of loan fees | (68,721) | 0 | 0 | (244,052) |
Payments of deferred stock issuance costs | (40,666) | (78,087) | (1,188,501) | (207,307) |
Net cash provided by (used in) financing activities | 4,800,575 | (78,087) | 17,208,214 | 7,916,911 |
Net Decrease In Cash | (394,644) | (514,140) | 7,904,679 | (1,202,938) |
Cash at the Beginning of the Period | 10,044,977 | 2,140,298 | 2,140,298 | 3,343,236 |
Cash at the End of the Period | 9,650,333 | 1,626,158 | 10,044,977 | 2,140,298 |
Supplemental Disclosure: | ||||
Cash paid for interest | $ 251,172 | $ 225,935 | 912,328 | 625,421 |
Noncash deferred stock issuance costs | $ 742,757 | $ 0 |
ORGANIZATION AND OPERATION
ORGANIZATION AND OPERATION | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
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. | 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 December 31, 2016, the Company owned 624 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 | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
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 elsewhere in this prospectus. 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 to 27.5 years, respectively, using the straight-line method. Lease origination costs are amortized over the average remaining term of the in-place leases which is generally less than one year. Maintenance and repair costs are charged to expenses as incurred. 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 and had corresponding refundable earnest deposits for these purchases of $65,537. However, not all of these properties are certain to be acquired because properties may fall out of escrow through the closing process for various reasons. 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 s 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 and $552,698, respectively, in resident security deposits. Security deposits are refundable, net of any outstanding charges and fees, upon expiration of the underlying lease 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 shares of the Company’s common stock. Such awards may be granted to officers, directors, employees, consultants and other persons who provide services to the Company or any related entity. 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 within that reporting period. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. | 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”). 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 their floating market interest rate and due to the fact that their security and payment terms are similar to other debt instruments currently being issued. The Company accounts for its investments in single-family residential properties as business combinations under the guidance of ASC Topic 805, Business Combinations Building improvements and buildings are depreciated over estimated useful lives of approximately 10 to 27.5 years, respectively, using the straight-line method. Lease origination costs are amortized over the average remaining term of the in-place leases which is generally less than one year. Maintenance and repair costs are charged to expenses as incurred. 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 years ended December 31, 2016 and 2015. 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 December 31, 2016 and 2015. Escrow deposits include refundable and non-refundable cash and earnest money on deposit with third parties for future property purchases. As of December 31, 2016, the Company had offers accepted to purchase single-family residential properties for an aggregate amount of $9,047,700 and had corresponding refundable earnest deposits for these purchases of $105,500. However, not all of these properties are certain to be acquired because properties may fall out of escrow through the closing process for various reasons and these purchases are contingent on the Company’s ability to secure the debt or equity financing required to fund the acquisition. 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. 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. During the year ended December 31, 2016, the Company included $1,931,258 of deferred stock issuance costs in its statement of stockholders’ equity in connection with its issuance of shares. Security deposits represent amounts deposited by tenants at the inception of the lease. As of December 31, 2016 and 2015, the Company had $552,698 and $435,267, respectively, in resident security deposits. Security deposits are refundable, net of any outstanding charges and fees, upon expiration of the underlying lease. 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 amounts for the fiscal year ended December 31, 2015 to conform to the current year’s presentation. The Company intends to elect to be taxed as a real estate investment trust (“REIT”), as defined in the Internal Revenue Code, commencing with the taxable year ended December 31, 2016. Accordingly, the Company does not expect to be subject to federal income tax, provided that it qualifies as a REIT and distributions to the stockholders equal or exceed REIT taxable income. During the year ended December 31, 2015, the Company did not elect to be taxes as a REIT, but due to significant operating losses and net operating loss carry-forwards, the Company was not subject to federal income tax. 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 shares of the Company’s common stock. Such awards may be granted to officers, directors, employees, consultants and other persons who provide services to the Company or any related entity. 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 December 31, 2016. During the years ended December 31, 2016 and 2015, the Company recognized $425,000 and $113,045, respectively, of compensation expense under the 2012 Plan. 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 years ended December 31, 2016 and 2015, potentially dilutive securities excluded from the calculations were 263,588 shares issuable upon exercise of outstanding warrants granted in prior years. The Company has determined that it has one reportable segment with activities related to leasing and operating single-family homes as rental properties. The Company’s properties are geographically dispersed and management evaluates operating performance at the market level and while each market and its properties are unique, the aggregate market portfolios have similar economic interests and operating performance. Metropolitan Area 2016 2015 Houston, TX 42 % 32 % Jacksonville, FL 41 % 49 % Memphis, TN 15 % 18 % 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 In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business |
INVESTMENTS IN SINGLE-FAMILY RE
INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
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. The homes are generally leased to individual tenants under leases with terms of one year or less. Number Land Buildings and Investments in 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 | NOTE 3. INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES The following table summarizes the Company’s investments in single-family residential properties. The homes are generally leased to individual tenants under leases with terms of one year or less. Number of Land Buildings and Investments Accumulated Investments in Total at January 1, 2015 395 $ 5,422,647 $ 23,961,608 $ 29,384,255 $ (592,114 ) $ 28,792,141 Purchases, improvements, disposition during 2015: Houston, TX 34,938 34,938 (380,630 ) (345,692 ) Jacksonville, FL 133 1,345,453 7,723,661 9,069,114 (415,172 ) 8,653,942 Memphis, TN 60,550 60,550 (226,188 ) (165,638 ) Memphis, TN (disposition) (1 ) (6,750 ) (38,250 ) (45,000 ) 1,507 (43,493 ) Atlanta, GA 2,150 2,150 (18,276 ) (16,126 ) Total at December 31, 2015 527 $ 6,761,350 $ 31,744,657 $ 38,506,007 $ (1,630,873 ) $ 36,875,134 Purchases and improvements during 2016: Houston, TX 97 1,818,200 7,240,899 9,059,099 (408,425 ) 8,650,674 Jacksonville, FL 261,453 261,453 (557,805 ) (296,352 ) Memphis, TN 125,895 125,895 (234,308 ) (108,413 ) Atlanta, GA 46,134 46,134 (21,638 ) 24,496 Total at December 31, 2016 624 $ 8,579,500 $ 39,419,038 $ 47,998,588 $ (2,853,049 ) $ 45,145,539 For the year ended December 31, 2016, the Company included $109,088 of rental income, $43,070 of property operating, maintenance and real estate taxes, $147,099 of acquisition costs, $21,721 of depreciation, and net loss of $102,802 in its consolidated statements of operations related to the Company’s acquisitions of additional properties during 2016. For the year ended December 31, 2015, the Company included $698,976 of rental income, $366,809 of property operating, maintenance and real estate taxes, $375,780 of acquisition costs, $118,180 of depreciation, and net loss of $161,793 in its consolidated statements of operations related to the Company’s acquisitions of additional properties during 2015. Unaudited Pro Forma Financial Information The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company for the years ended December 31, 2016 and 2015 prepared as if all of the Company’s acquisitions of properties in 2016 and 2015 had occurred on January 1, 2015. This pro forma information does not purport to represent what the actual results of operations of the Company would have been had these acquisitions occurred on this date, nor does it purport to predict the results of operations for future periods. For the Year Ended 2016 2015 Rental income $ 6,745,713 $ 6,579,828 Property operating, maintenance and real estate taxes $ 3,099,440 $ 3,053,996 Depreciation and amortization $ 1,626,395 $ 1,567,162 Net loss $ (1,424,863 ) $ (1,638,482 ) Net loss per share, basic and fully diluted $ (0.17 ) $ (0.23 ) Weighted average number of common shares outstanding, basic and fully diluted 8,197,073 7,016,796 The unaudited pro forma information for the years ended December 31, 2016 and 2015 has been adjusted to include all acquisition fees and expenses related to the acquisitions as being recorded on January 1, 2015 and additionally to include the additional interest expense relating to the Company’s 2015 borrowings. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
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 | NOTE 4. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES At December 31, 2016 and 2015, accounts payable and accrued liabilities consisted of the following: 2016 2015 Accounts payable $ 248,456 $ 321,815 Real estate taxes payable 667,811 415,124 Accrued compensation, board fees and other 300,500 343,750 Interest payable 66,468 62,749 $ 1,283,235 $ 1,143,438 |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
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 to a regional bank secured by 97 of the Company’s homes located in Texas. Principal and accrued interest are payable in sixty consecutive monthly installments of $31,759 on the first day of the month until January 31, 2022 when the entire amount of principal and interest remaining unpaid will be payable. Interest accrues and is payable monthly on the loan at the rate equal to four and one-half percent (4.50%) per annum until maturity. 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% over the prime rate (interest rate was 5.00% per annum at March 31, 2017), and are secured by deeds of trust encumbering homes in each specified area. On April 4, 2017, the Company entered into loan modification agreements with the lender where the interest rate on all four loans has been reduced to a fixed rate of 4.5% per annum and principal and interest payments will be made monthly based on a 25 year amortization period with the remaining unpaid principal on all four loans due on April 5, 2020. The loans have a prepayment penalty of 2% during the first year and 1% during the following year on amounts paid in excess of the scheduled amortization. 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 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 and $359,648 as of March 31, 2017 and December 31, 2016, respectively. During the three months ended March 31, 2017 and 2016, the Company incurred $307,520 and $258,157, respectively, of interest expense related to the notes payable, which includes $32,617 and $30,327, respectively, of amortization of deferred loan fees. | NOTE 5. NOTES PAYABLE A summary of the Company’s notes payable as of December 31, 2016 and December 31, 2015 is as follows: 2016 2015 Note Reven Housing Texas, LLC $ 7,502,504 $ 7,570,000 Reven Housing Tennessee, LLC 3,908,829 3,917,530 Reven Housing Florida, LLC 3,526,794 3,526,985 Reven Housing Florida 2, LLC 4,875,898 4,875,895 19,814,025 19,890,410 Less deferred loan fees, net (359,648 ) (480,956 ) Notes payable, net $ 19,454,377 $ 19,409,454 As of December 31, 2016, the notes above incur interest at a rate of 1.00% over the prime rate (interest rate is 4.75% per annum at December 31, 2016), and are secured by deeds of trust encumbering substantially all of the Company’s homes in each specified area. 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 $359,648 and $480,956 as of December 31, 2016 and 2015, respectively. During the years ended December 31, 2016 and 2015, the Company incurred $1,037,355 and $744,000, respectively, of interest expense related to the notes payable, which includes $121,308 and $96,640, respectively, of amortization of deferred loan fees. The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of December 31, 2016: 2017 $ 321,521 2018 442,776 2019 11,095,495 2020 7,954,233 $ 19,814,025 |
STOCKHOLDERS_ EQUITY AND STOCK
STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
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 shares of the Company’s common stock under the 2012 Plan to certain officers and consultants of the Company. The shares issued are subject to restrictions and future vesting conditions based on the Company reaching certain future milestones. During the year ended December 31, 2016, 106,250 of these shares became vested upon the achievement of certain milestones related to our public offering of common stock mentioned above. None of the remaining 318,750 shares were vested as of the issuance date. Compensation expense will be recognized in the applicable future periods on these unvested shares should the applicable milestones be achieved in accordance with the vesting schedule. There is no assurance that these milestones will in fact be achieved and that the shares will in fact vest in the future. The Company has outstanding warrants that allow holders to purchase up to 263,588 shares at an exercise price of $4.00 per share. The warrants will expire on September 27, 2018, if not exercised prior to that date. | NOTE 6. STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION On February 1, 2016, the Company issued an aggregate of 22,609 shares of the Company’s common stock under the 2012 Plan to certain officers and consultants of the Company. The shares were valued at a per share price of $5.00 per share consistent with the price of the Company’s current registered stock offering and were utilized as payment for a portion of the officers and consultants outstanding bonus compensation for the year ended December 31, 2015 of $113,045. The Company filed a registration statement on Form S-11 with the Security Exchange Commission (“SEC”) for the offer of a minimum of 3,000,000 shares and a maximum of 5,000,000 shares of common stock for sale to the public at an offering price of $5.00 per share. The SEC declared the Company’s registration statement effective on May 10, 2016. Under the terms of the offering, the Company issued 3,694,620 shares of stock and received $18,473,100 in gross offering proceeds through December 31, 2016 when the offering was terminated. Offering costs totaled $1,931,258 and have been offset against additional paid-in capital as a cost of the stock issuance. On October 16, 2014, the Company issued 425,000 shares of the Company’s common stock under the 2012 Plan to certain officers and consultants of the Company. The shares issued are subject to restrictions and future vesting conditions based on the Company reaching certain future milestones. During the year ended December 31, 2016, 106,250 of these shares became vested upon the achievement of certain milestones related to our public offering of common stock mentioned above. Accordingly, $425,000 of noncash share-based compensation expense was then recognized based on the value of the shares on the date of grant. None of the remaining 318,750 shares were vested as of the issuance date. Compensation expense will be recognized in the applicable future periods on these unvested shares should the applicable milestones be achieved in accordance with the vesting schedule. There is no assurance that these milestones will in fact be achieved and that the shares will in fact vest in the future. The Company has outstanding warrants that allow holders to purchase up to 263,588 shares at an exercise price of $4.00 per share. The warrants will expire on September 27, 2018, if not exercised prior to that date. |
INCOME TAXES
INCOME TAXES | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
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. | NOTE 7. INCOME TAXES The Company intends to elect REIT status effective for the year ended December 31, 2016. The Company would then generally not be subject to income taxes assuming it complied with the specific distribution rules applicable to REITs. The Company has also incurred current and prior year net operating losses; thus is not expecting to incur current income tax expenses, and due to its election of REIT status commencing in 2016, is not expected to realize any future tax benefits from the current years; or prior years’ operating losses. Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and expected carry-forwards are available to reduce taxable income. The Company records a valuation allowance when, in the opinion of management, it is more likely than not, that the Company will not realize some or all deferred tax assets. As the achievement of required future taxable income is uncertain, the Company recorded a valuation allowance equal to the deferred tax asset at December 31, 2016 and 2015. At December 31, 2015 the Company had federal and state net operating loss carry-forwards of approximately $2,600,000. The federal and state tax loss carry-forwards will begin to expire in 2032, unless previously utilized. Pursuant to Internal Revenue Code Section 382, use of the Company’s net operating loss carry-forwards may be limited if a cumulative change in ownership of more than 50% occurs within a three-year period. Management believes that such an ownership change had occurred but has not yet performed a study of the limitations on the net operating losses. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
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 for the three months ended March 31, 2016. Reven Capital, LLC currently subleases office space from the Company on a month to month basis for a monthly rental of $500. The Company received income from Reven Capital of $1,500 and $1,000 for the three months ending March 31, 2017 and 2016, respectively. | 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 and $36,000 for the years ended December 31, 2016 and 2015, respectively. Reven Capital, LLC currently subleases office space from the Company on a month to month basis for a monthly rental of $500. During the year-ending December 31, 2016, the Company recorded and received income from Reven Capital of $5,500. |
RENTAL INCOME
RENTAL INCOME | 12 Months Ended |
Dec. 31, 2016 | |
Lease Income [Abstract] | |
Lease Income [Text Block] | NOTE 9. RENTAL INCOME The Company generally rents single family homes to individuals under non-cancelable lease agreements with a term of one year. Future minimum rental revenues under existing leases on properties as of December 31, 2016 are expected to be as follows: 2017 $ 2,804,126 2018 1,103,683 2019 31,025 $ 3,938,834 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
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. | NOTE 10. 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 years ended December 31, 2016 and 2015. Operating Lease On December 21, 2015, the Company entered into a new office lease agreement. The lease term is 64 months and commenced on February 1, 2016 when the Company relocated to the new space. In addition to monthly rent and utility payments, the Company will also pay its proportionate share of all common area maintenance and taxes above certain 2016 base costs. The lease is subject to annual rent payment escalation clauses. During the year ended December 31, 2016, the Company recorded $57,600 for rental expenses relating to this lease, which is included in general and administration expenses on the accompanying consolidated statement of operations. A schedule of future minimum lease payments under the operating lease for the following years is as follows: 2017 $ 65,728 2018 81,279 2019 83,717 2020 86,229 2021 36,881 $ 353,834 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
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. | NOTE 11. SUBSEQUENT EVENTS Note 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 to a bank, secured by deeds of trust encumbering certain of the Company’s homes located in Houston. The entire balance of principal and accrued interest is due and payable on January 31, 2022. The note provides for monthly principal and interest payments of $31,759 at a fixed rate of 4.5% per annum. Proceeds of the note payable will be utilized primarily for future single-family home acquisitions. Recent Real Estate Investment Acquisition On March 15, 2017, a wholly owned subsidiary of the Company purchased a portfolio of 38 single-family homes, located in the Atlanta, Georgia metropolitan area for approximately $2,663,000 not including closing and acquisition costs. Purchase and Sale Agreement On February 16, 2017, a wholly owned subsidiary of the Company entered into a purchase and sale agreement to purchase a portfolio of 27 single-family homes, located in the Memphis, Tennessee metropolitan area for approximately $2,140,000. However, it is not yet known if any of these properties are certain to be acquired because properties may fall out of escrow through the closing process for various reasons. |
BASIS OF PRESENTATION AND SIG18
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
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 elsewhere in this prospectus. The results of operations for the period ended March 31, 2017 are not necessarily indicative of the operating results for the full year. | 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”). |
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. | 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. | 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. | 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 their floating market interest rate and due to the fact that their 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 to 27.5 years, respectively, using the straight-line method. Lease origination costs are amortized over the average remaining term of the in-place leases which is generally less than one year. Maintenance and repair costs are charged to expenses as incurred. 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. | Investments in Single-Family Residential Properties The Company accounts for its investments in single-family residential properties as business combinations under the guidance of ASC Topic 805, Business Combinations Building improvements and buildings are depreciated over estimated useful lives of approximately 10 to 27.5 years, respectively, using the straight-line method. Lease origination costs are amortized over the average remaining term of the in-place leases which is generally less than one year. Maintenance and repair costs are charged to expenses as incurred. 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 years ended December 31, 2016 and 2015. |
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. | 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. | 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 December 31, 2016 and 2015. |
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 and had corresponding refundable earnest deposits for these purchases of $65,537. However, not all of these properties are certain to be acquired because properties may fall out of escrow through the closing process for various reasons. | Escrow Deposits Escrow deposits include refundable and non-refundable cash and earnest money on deposit with third parties for future property purchases. As of December 31, 2016, the Company had offers accepted to purchase single-family residential properties for an aggregate amount of $9,047,700 and had corresponding refundable earnest deposits for these purchases of $105,500. However, not all of these properties are certain to be acquired because properties may fall out of escrow through the closing process for various reasons and these purchases are contingent on the Company’s ability to secure the debt or equity financing required to fund the acquisition. |
Deferred Loan Fees, Policy [Policy Text Block] | 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 s | 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. |
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 | 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. During the year ended December 31, 2016, the Company included $1,931,258 of deferred stock issuance costs in its statement of stockholders’ equity in connection with its issuance of shares. |
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 and $552,698, respectively, in resident security deposits. Security deposits are refundable, net of any outstanding charges and fees, upon expiration of the underlying lease | Security Deposits Security deposits represent amounts deposited by tenants at the inception of the lease. As of December 31, 2016 and 2015, the Company had $552,698 and $435,267, respectively, in resident security deposits. Security deposits are refundable, net of any outstanding charges and fees, upon expiration of the underlying lease. |
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 | 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. | Reclassifications The Company has reclassified certain amounts for the fiscal year ended December 31, 2015 to conform to the current year’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 | Income Taxes The Company intends to elect to be taxed as a real estate investment trust (“REIT”), as defined in the Internal Revenue Code, commencing with the taxable year ended December 31, 2016. Accordingly, the Company does not expect to be subject to federal income tax, provided that it qualifies as a REIT and distributions to the stockholders equal or exceed REIT taxable income. During the year ended December 31, 2015, the Company did not elect to be taxes as a REIT, but due to significant operating losses and net operating loss carry-forwards, the Company was not subject to federal income tax. 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 shares of the Company’s common stock. Such awards may be granted to officers, directors, employees, consultants and other persons who provide services to the Company or any related entity. 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. | 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 shares of the Company’s common stock. Such awards may be granted to officers, directors, employees, consultants and other persons who provide services to the Company or any related entity. 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 December 31, 2016. During the years ended December 31, 2016 and 2015, the Company recognized $425,000 and $113,045, respectively, of compensation expense under the 2012 Plan. |
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. | 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 years ended December 31, 2016 and 2015, potentially dilutive securities excluded from the calculations were 263,588 shares issuable upon exercise of outstanding warrants granted in prior years. |
Segment Reporting, Policy [Policy Text Block] | Segment Reporting The Company has determined that it has one reportable segment with activities related to leasing and operating single-family homes as rental properties. The Company’s properties are geographically dispersed and management evaluates operating performance at the market level and while each market and its properties are unique, the aggregate market portfolios have similar economic interests and operating performance. | |
Geographic Concentration [Policy Text Block] | Metropolitan Area 2016 2015 Houston, TX 42 % 32 % Jacksonville, FL 41 % 49 % Memphis, TN 15 % 18 % | |
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 within that reporting period. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. | 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 In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business |
BASIS OF PRESENTATION AND SIG19
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | The Company holds concentrations of single-family residential properties in the following metropolitan areas in excess of 10% of our total portfolio as of December 31, 2016 and 2015, and as such the Company is more vulnerable to any adverse macroeconomic developments in such areas: Metropolitan Area 2016 2015 Houston, TX 42 % 32 % Jacksonville, FL 41 % 49 % Memphis, TN 15 % 18 % |
INVESTMENTS IN SINGLE-FAMILY 20
INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Residential Homes [Abstract] | ||
Schedule of Real Estate Properties [Table Text Block] | The following table summarizes the Company’s investments in single-family residential properties. The homes are generally leased to individual tenants under leases with terms of one year or less. Number Land Buildings and Investments in 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 | The following table summarizes the Company’s investments in single-family residential properties. The homes are generally leased to individual tenants under leases with terms of one year or less. Number of Land Buildings and Investments Accumulated Investments in Total at January 1, 2015 395 $ 5,422,647 $ 23,961,608 $ 29,384,255 $ (592,114 ) $ 28,792,141 Purchases, improvements, disposition during 2015: Houston, TX 34,938 34,938 (380,630 ) (345,692 ) Jacksonville, FL 133 1,345,453 7,723,661 9,069,114 (415,172 ) 8,653,942 Memphis, TN 60,550 60,550 (226,188 ) (165,638 ) Memphis, TN (disposition) (1 ) (6,750 ) (38,250 ) (45,000 ) 1,507 (43,493 ) Atlanta, GA 2,150 2,150 (18,276 ) (16,126 ) Total at December 31, 2015 527 $ 6,761,350 $ 31,744,657 $ 38,506,007 $ (1,630,873 ) $ 36,875,134 Purchases and improvements during 2016: Houston, TX 97 1,818,200 7,240,899 9,059,099 (408,425 ) 8,650,674 Jacksonville, FL 261,453 261,453 (557,805 ) (296,352 ) Memphis, TN 125,895 125,895 (234,308 ) (108,413 ) Atlanta, GA 46,134 46,134 (21,638 ) 24,496 Total at December 31, 2016 624 $ 8,579,500 $ 39,419,038 $ 47,998,588 $ (2,853,049 ) $ 45,145,539 |
Schedule Of Proforma Statement Of Operations Related To Real Estate Investment [Table Text Block] | This pro forma information does not purport to represent what the actual results of operations of the Company would have been had these acquisitions occurred on this date, nor does it purport to predict the results of operations for future periods. For the Year Ended 2016 2015 Rental income $ 6,745,713 $ 6,579,828 Property operating, maintenance and real estate taxes $ 3,099,440 $ 3,053,996 Depreciation and amortization $ 1,626,395 $ 1,567,162 Net loss $ (1,424,863 ) $ (1,638,482 ) Net loss per share, basic and fully diluted $ (0.17 ) $ (0.23 ) Weighted average number of common shares outstanding, basic and fully diluted 8,197,073 7,016,796 |
ACCOUNTS PAYABLE AND ACCRUED 21
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
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 | At December 31, 2016 and 2015, accounts payable and accrued liabilities consisted of the following: 2016 2015 Accounts payable $ 248,456 $ 321,815 Real estate taxes payable 667,811 415,124 Accrued compensation, board fees and other 300,500 343,750 Interest payable 66,468 62,749 $ 1,283,235 $ 1,143,438 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
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 | A summary of the Company’s notes payable as of December 31, 2016 and December 31, 2015 is as follows: 2016 2015 Note Reven Housing Texas, LLC $ 7,502,504 $ 7,570,000 Reven Housing Tennessee, LLC 3,908,829 3,917,530 Reven Housing Florida, LLC 3,526,794 3,526,985 Reven Housing Florida 2, LLC 4,875,898 4,875,895 19,814,025 19,890,410 Less deferred loan fees, net (359,648 ) (480,956 ) Notes payable, net $ 19,454,377 $ 19,409,454 |
Schedule of Long-term Debt Instruments [Table Text Block] | The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of December 31, 2016: 2017 $ 321,521 2018 442,776 2019 11,095,495 2020 7,954,233 $ 19,814,025 |
RENTAL INCOME (Tables)
RENTAL INCOME (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Lease Income [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum rental revenues under existing leases on properties as of December 31, 2016 are expected to be as follows: 2017 $ 2,804,126 2018 1,103,683 2019 31,025 $ 3,938,834 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases of Lessee Disclosure [Table Text Block] | A schedule of future minimum lease payments under the operating lease for the following years is as follows: 2017 $ 65,728 2018 81,279 2019 83,717 2020 86,229 2021 36,881 $ 353,834 |
BASIS OF PRESENTATION AND SIG25
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Assets, Total [Member] | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Houston, TX [Member] | ||
Concentration Risk, Percentage | 42.00% | 32.00% |
Jacksonville, FL [Member] | ||
Concentration Risk, Percentage | 41.00% | 49.00% |
Memphis, TN [Member] | ||
Concentration Risk, Percentage | 15.00% | 18.00% |
BASIS OF PRESENTATION AND SIG26
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 | |
Accounting Policies [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 263,588 | 263,588 | |||
Deferred Offering Costs | $ 40,666 | $ 0 | $ 742,757 | ||
Security Deposit | 595,360 | 552,698 | 435,267 | ||
Earnest Money Deposits | 65,537 | 105,500 | |||
Offers Accepted to Purchase Residential Properties, Aggregate Amount | $ 5,886,000 | 9,047,700 | |||
Share-based Compensation | 425,000 | 113,045 | |||
Additional Paid-in Capital [Member] | |||||
Accounting Policies [Line Items] | |||||
Deferred Offering Costs | $ 1,931,258 | ||||
Buildings and Improvements [Member] | Minimum [Member] | |||||
Accounting Policies [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 10 years | 10 years | |||
Buildings and Improvements [Member] | Maximum [Member] | |||||
Accounting Policies [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 27 years 6 months | 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. | 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. | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 496,359 | 496,359 | |||
Share-based Compensation | $ 425,000 | $ 113,045 |
INVESTMENTS IN SINGLE-FAMILY 27
INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES (Details) | 3 Months Ended | |||||
Mar. 31, 2017USD ($)Number | Dec. 31, 2016USD ($)Number | Dec. 31, 2015USD ($)Number | Dec. 31, 2014USD ($) | Dec. 31, 2014Number | Dec. 31, 2014 | |
RESIDENTIAL HOMES, NET [Line Items] | ||||||
Number of Homes | 681 | 624 | 527 | 395 | 395 | |
Land | $ 9,238,642 | $ 8,579,550 | $ 6,761,350 | $ 5,422,647 | ||
Buildings and Improvements | 43,127,053 | 39,419,038 | 31,744,657 | 23,961,608 | ||
Investments in Single-Family Residential Properties, Gross | 52,365,695 | 47,998,588 | 38,506,007 | 29,384,255 | ||
Accumulated Depreciation | (3,231,343) | (2,853,049) | (1,630,873) | (592,114) | ||
Investments in Single-Family Residential Properties, Net | 49,134,352 | $ 45,145,539 | $ 36,875,134 | $ 28,792,141 | ||
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 | 97 | 0 | |||
Land | $ 1,818,200 | $ 0 | ||||
Buildings and Improvements | 7,240,899 | 34,938 | ||||
Investments in Single-Family Residential Properties, Gross | 9,059,099 | 34,938 | ||||
Accumulated Depreciation | (408,425) | (380,630) | ||||
Investments in Single-Family Residential Properties, Net | $ 8,650,674 | $ (345,692) | ||||
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 | 0 | 133 | |||
Land | $ 0 | $ 1,345,453 | ||||
Buildings and Improvements | 261,453 | 7,723,661 | ||||
Investments in Single-Family Residential Properties, Gross | 261,453 | 9,069,114 | ||||
Accumulated Depreciation | (557,805) | (415,172) | ||||
Investments in Single-Family Residential Properties, Net | $ (296,352) | $ 8,653,942 | ||||
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 | |||||
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, Disposals | $ (10,908) | |||||
Jacksonville Fl Sale [Member] | Building Improvements [Member] | ||||||
RESIDENTIAL HOMES, NET [Line Items] | ||||||
Property, Plant and Equipment, Disposals | (66,468) | |||||
Jacksonville Fl Sale [Member] | Investments In Single Family Residential Properties [Member] | ||||||
RESIDENTIAL HOMES, NET [Line Items] | ||||||
Property, Plant and Equipment, Disposals | $ (77,376) | |||||
Memphis, TN [Member] | ||||||
RESIDENTIAL HOMES, NET [Line Items] | ||||||
Number of Homes | Number | 20 | 0 | 0 | |||
Land | $ 0 | $ 0 | ||||
Buildings and Improvements | 125,895 | 60,550 | ||||
Investments in Single-Family Residential Properties, Gross | 125,895 | 60,550 | ||||
Accumulated Depreciation | (234,308) | (226,188) | ||||
Investments in Single-Family Residential Properties, Net | $ (108,413) | $ (165,638) | ||||
Number of Homes (Disposition) | Number | (1) | |||||
Land (Disposition) | $ (6,750) | |||||
Buildings and Improvements (Disposition) | (38,250) | |||||
Total Investments in Real Estate (Disposition) | (45,000) | |||||
Accumulated Depreciation (Disposition) | 1,507 | |||||
Investments in Real Estate Net (Disposition) | $ (43,493) | |||||
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 | 0 | 0 | |||
Land | $ 0 | $ 0 | ||||
Buildings and Improvements | 46,134 | 2,150 | ||||
Investments in Single-Family Residential Properties, Gross | 46,134 | 2,150 | ||||
Accumulated Depreciation | (21,638) | (18,276) | ||||
Investments in Single-Family Residential Properties, Net | $ 24,496 | $ (16,126) | ||||
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 |
INVESTMENTS IN SINGLE-FAMILY 28
INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
RESIDENTIAL HOMES, NET [Line Items] | ||||
Rental income | $ 1,741,309 | $ 1,378,763 | $ 5,648,014 | $ 4,934,201 |
Property operating, maintenance and real estate taxes | 515,560 | 401,236 | 1,684,431 | 1,552,051 |
Depreciation and amortization | 441,725 | 325,416 | 1,334,555 | 1,162,312 |
Net loss | $ (364,678) | $ (377,880) | $ (1,772,354) | $ (1,795,861) |
Net loss per share, basic and fully diluted | $ (0.03) | $ (0.05) | $ (0.22) | $ (0.26) |
Weighted average number of common shares outstanding, basic and fully diluted | 10,734,025 | 7,031,618 | 8,197,073 | 7,016,796 |
Pro Forma [Member] | Real Estate Investment [Member] | ||||
RESIDENTIAL HOMES, NET [Line Items] | ||||
Rental income | $ 6,745,713 | $ 6,579,828 | ||
Property operating, maintenance and real estate taxes | 3,099,440 | 3,053,996 | ||
Depreciation and amortization | 1,626,395 | 1,567,162 | ||
Net loss | $ (1,424,863) | $ (1,638,482) | ||
Net loss per share, basic and fully diluted | $ (0.17) | $ (0.23) | ||
Weighted average number of common shares outstanding, basic and fully diluted | 8,197,073 | 7,016,796 |
INVESTMENTS IN SINGLE-FAMILY 29
INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Rental Income | $ 1,741,309 | $ 1,378,763 | $ 5,648,014 | $ 4,934,201 |
Cost of Property Repairs and Maintenance | 515,560 | 401,236 | 1,684,431 | 1,552,051 |
Depreciation, Depletion and Amortization, Nonproduction | 441,725 | 325,416 | 1,334,555 | 1,162,312 |
Net Income (Loss) Attributable to Parent, Total | $ (364,678) | $ (377,880) | (1,772,354) | (1,795,861) |
Acquisition-related Costs [Member] | ||||
Rental Income | 109,088 | 698,976 | ||
Cost of Property Repairs and Maintenance | 43,070 | 366,809 | ||
Acquisition Costs, Period Cost | 147,099 | 375,780 | ||
Depreciation, Depletion and Amortization, Nonproduction | 21,721 | 118,180 | ||
Net Income (Loss) Attributable to Parent, Total | $ 102,802 | $ 161,793 |
ACCOUNTS PAYABLE AND ACCRUED 30
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts Payable And Accrued Expenses [Line Items] | |||
Accounts payable | $ 100,234 | $ 248,456 | $ 321,815 |
Real estate taxes payable | 286,560 | 667,811 | 415,124 |
Accrued compensation, board fees and other | 389,592 | 300,500 | 343,750 |
Interest payable | 90,199 | 66,468 | 62,749 |
Accounts payable and accrued liabilities | $ 866,585 | $ 1,283,235 | $ 1,143,438 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Note | |||
Notes Payable, Total | $ 24,723,987 | $ 19,814,025 | $ 19,890,410 |
Less deferred loan fees, net | (395,753) | (359,648) | (480,956) |
Notes payable, net | 24,328,234 | 19,454,377 | 19,409,454 |
Reven Housing Texas, LLC [Member] | |||
Note | |||
Notes Payable, Total | 7,460,535 | 7,502,504 | 7,570,000 |
Reven Housing Texas 2 LLC [Member] | |||
Note | |||
Notes Payable, Total | 5,006,439 | 0 | |
Reven Housing Tennessee, LLC [Member] | |||
Note | |||
Notes Payable, Total | 3,887,321 | 3,908,829 | 3,917,530 |
Reven Housing Florida, LLC [Member] | |||
Note | |||
Notes Payable, Total | 3,493,794 | 3,526,794 | 3,526,985 |
Reven Housing Florida 2, LLC [Member] | |||
Note | |||
Notes Payable, Total | $ 4,875,898 | $ 4,875,898 | $ 4,875,895 |
NOTES PAYABLE (Details 1)
NOTES PAYABLE (Details 1) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
2,017 | $ 321,521 | ||
2,018 | 442,776 | ||
2,019 | 11,095,495 | ||
2,020 | 7,954,233 | ||
Notes Payable, Total | $ 24,723,987 | $ 19,814,025 | $ 19,890,410 |
NOTES PAYABLE (Details Textual)
NOTES PAYABLE (Details Textual) - USD ($) | Apr. 04, 2017 | Jan. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Notes Payable [Line Items] | ||||||
Interest Expense, Debt | $ 307,520 | $ 258,157 | $ 1,037,355 | $ 744,000 | ||
Amortization of Financing Costs | 32,617 | $ 30,327 | 121,308 | 96,640 | ||
Debt Instrument, Periodic Payment, Total | $ 31,759 | |||||
Debt Issuance Costs, Net | $ 395,753 | $ 359,648 | 480,956 | |||
Notes Payable [Member] | ||||||
Notes Payable [Line Items] | ||||||
Debt Instrument, Maturity Date | Jan. 31, 2022 | |||||
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) | interest at a rate of 1.00% over the prime rate | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.75% | ||||
Debt Issuance Costs, Net | $ 359,648 | $ 480,956 | ||||
Debt Instrument, Face Amount | $ 5,020,000 | |||||
Prepayment Penalty Percentage First Year | 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 |
STOCKHOLDERS_ EQUITY AND STOC34
STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION (Details Textual) - USD ($) | Feb. 01, 2016 | Oct. 16, 2014 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 10, 2016 |
STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION [Line Items] | ||||||
Deferred Offering Costs | $ 40,666 | $ 0 | $ 742,757 | |||
Share Price | $ 5 | |||||
Proceeds from Issuance of Common Stock | $ 18,473,100 | 0 | ||||
Sale of Stock, Number of Shares Issued in Transaction | 3,694,620 | |||||
Additional Paid-in Capital [Member] | ||||||
STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION [Line Items] | ||||||
Deferred Offering Costs | $ 1,931,258 | |||||
Incentive Compensation Plan 2012 [Member] | ||||||
STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION [Line Items] | ||||||
Warrants To Purchase Common Stock | 5 | |||||
Stock Issued During Period, Shares, Issued for Services | 22,609 | 425,000 | 425,000 | |||
Accrued Bonuses | $ 113,045 | |||||
Allocated Share-based Compensation Expense | $ 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 | 318,750 | ||||
Maximum [Member] | ||||||
STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION [Line Items] | ||||||
Common Stock, Offered to Public | 5,000,000 | |||||
Minimum [Member] | ||||||
STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION [Line Items] | ||||||
Common Stock, Offered to Public | 3,000,000 | |||||
Private Placement [Member] | ||||||
STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION [Line Items] | ||||||
Warrants To Purchase Common Stock | 263,588 | 263,588 | ||||
Share Price | $ 4 | $ 4 | ||||
Investment Warrants Expiration Date | Sep. 27, 2018 | Sep. 27, 2018 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Line Items] | ||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 2,600,000 | |
Federal Tax Loss Carry Forwards Expiration | expire in 2032 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||||
Operating Leases, Rent Expense | $ 500 | $ 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 | 3,000 | $ 36,000 | |
Operating Leases, Rent Expense, Sublease Rentals | $ 5,500 |
RENTAL INCOME (Details)
RENTAL INCOME (Details) | Dec. 31, 2016USD ($) |
LEASE INCOME [Line Items] | |
2,017 | $ 2,804,126 |
2,018 | 1,103,683 |
2,019 | 31,025 |
Operating Leases, Future Minimum Payments Receivable, Total | $ 3,938,834 |
COMMITMENTS AND CONTINGENCIES38
COMMITMENTS AND CONTINGENCIES (Details) | Dec. 31, 2016USD ($) |
Operating Leased Assets [Line Items] | |
2,017 | $ 65,728 |
2,018 | 81,279 |
2,019 | 83,717 |
2,020 | 86,229 |
2,021 | 36,881 |
Operating Leases, Future Minimum Payments Due, Total | $ 353,834 |
COMMITMENTS AND CONTINGENCIES39
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Dec. 21, 2015 | Mar. 31, 2016 | Dec. 31, 2016 | |
Other Commitments [Line Items] | |||
Operating Lease Maturity Term | 64 months | ||
Operating Leases, Rent Expense | $ 500 | $ 500 | |
General and Administrative Expense [Member] | |||
Other Commitments [Line Items] | |||
Operating Leases, Rent Expense | $ 57,600 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - USD ($) | Mar. 15, 2017 | Apr. 24, 2017 | Apr. 19, 2017 | Feb. 16, 2017 | Jan. 31, 2017 |
Subsequent Event [Line Items] | |||||
Debt Instrument, Periodic Payment, Total | $ 31,759 | ||||
Subsequent Event [Member] | Atlanta [Member] | |||||
Subsequent Event [Line Items] | |||||
Payments to Acquire Real Estate | $ 2,663,000 | $ 300,000 | |||
Subsequent Event [Member] | Memphis [Member] | |||||
Subsequent Event [Line Items] | |||||
Payments to Acquire Real Estate | $ 5,320,000 | $ 2,140,000 | |||
Subsequent Event [Member] | Promissory Note [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||
Debt Instrument, Face Amount | $ 5,020,000 | ||||
Debt Instrument, Maturity Date | Jan. 31, 2022 | ||||
Debt Instrument, Periodic Payment, Total | $ 31,759 |