Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Reven Housing REIT, Inc. | |
Entity Central Index Key | 1,487,782 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | RVEN | |
Entity Common Stock, Shares Outstanding | 10,734,025 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Investments in single-family residential properties: | ||
Land | $ 10,429,647 | $ 8,579,550 |
Buildings and improvements | 45,612,136 | 39,419,038 |
Investments in real estate, gross | 56,041,783 | 47,998,588 |
Accumulated depreciation | (4,114,171) | (2,853,049) |
Investments in single-family residential properties, net | 51,927,612 | 45,145,539 |
Cash | 6,980,464 | 10,044,977 |
Rent and other receivables | 674,086 | 246,378 |
Escrow deposits | 32,390 | 105,500 |
Lease origination costs, net | 363,873 | 329,395 |
Deferred stock issuance costs | 556,604 | 0 |
Other assets, net | 1,338,868 | 195,020 |
Total Assets | 61,873,897 | 56,066,809 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued liabilities | 1,475,643 | 1,283,235 |
Resident security deposits | 679,409 | 552,698 |
Notes payable, net | 26,904,604 | 19,454,377 |
Total Liabilities | 29,059,656 | 21,290,310 |
Commitments and contingencies (Note 9) | ||
Stockholders' Equity | ||
Preferred stock, $.001 par value; 25,000,000 shares authorized; No shares issued or outstanding | 0 | 0 |
Common stock, $.001 par value; 100,000,000 shares authorized; 10,734,025 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 10,734 | 10,734 |
Additional paid-in capital | 41,677,465 | 41,677,465 |
Accumulated deficit | (8,873,958) | (6,911,700) |
Total Stockholders' Equity | 32,814,241 | 34,776,499 |
Total Liabilities and Stockholders' Equity | $ 61,873,897 | $ 56,066,809 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 10,734,025 | 10,734,025 |
Common stock, shares outstanding | 10,734,025 | 10,734,025 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenue: | ||||
Rental income | $ 2,043,322 | $ 1,381,080 | $ 5,814,135 | $ 4,153,979 |
Expenses: | ||||
Property operating and maintenance | 593,339 | 406,475 | 1,694,969 | 1,207,217 |
Real estate taxes | 346,669 | 230,165 | 988,839 | 658,256 |
Depreciation and amortization | 537,968 | 326,029 | 1,458,933 | 964,953 |
General and administration | 558,074 | 486,379 | 1,860,473 | 1,466,865 |
Noncash share-based compensation | 0 | 425,000 | 0 | 425,000 |
Acquisition costs | 0 | 18,265 | 0 | 76,129 |
Total expenses | 2,036,050 | 1,892,313 | 6,003,214 | 4,798,420 |
Operating income (loss) | 7,272 | (511,233) | (189,079) | (644,441) |
Other income (expenses): | ||||
Casualty loss, net | (978,181) | 0 | (895,194) | 0 |
Gain on sale of residential property, net | 0 | 0 | 75,796 | 0 |
Other | 5,466 | 496 | 13,628 | 805 |
Interest expense | (342,253) | (260,506) | (967,410) | (775,849) |
Total other income (expenses), net | (1,314,968) | (260,010) | (1,773,180) | (775,044) |
Net loss | $ (1,307,696) | $ (771,243) | $ (1,962,259) | $ (1,419,485) |
Net loss per share | ||||
(Basic and fully diluted) (in dollars per share) | $ (0.12) | $ (0.09) | $ (0.18) | $ (0.19) |
Weighted average number of common shares outstanding (in shares) | 10,734,025 | 8,245,013 | 10,734,025 | 7,441,650 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows From Operating Activities: | ||
Net loss | $ (1,962,259) | $ (1,419,485) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,458,933 | 964,953 |
Noncash share-based compensation | 0 | 425,000 |
Amortization of deferred loan fees | 108,117 | 90,981 |
Casualty loss, net | 895,194 | 0 |
Gain on sale of residential properties, net | (75,796) | 0 |
Changes in operating assets and liabilities: | ||
Rent and other receivables | (427,708) | (5,872) |
Other assets | 6,152 | (44,734) |
Accounts payable and accrued liabilities | 192,408 | (99,689) |
Resident security deposits | 126,711 | 3,925 |
Net cash provided by (used in) operating activities | 321,752 | (84,921) |
Cash Flows From Investing Activities: | ||
Acquisitions of single-family residential properties | (10,117,039) | 0 |
Capital improvements for single-family residential properties | (668,268) | (364,823) |
Proceeds from disposition of single-family residential property | 205,027 | 0 |
Insurance proceeds received for property damages | 554,806 | 0 |
Lease origination costs | (219,407) | (76,080) |
Escrow deposits | 73,110 | 51,401 |
Net cash used in investing activities | (10,171,771) | (389,502) |
Cash Flows From Financing Activities: | ||
Proceeds from issuance of shares | 0 | 15,415,100 |
Proceeds from note payable | 7,968,633 | 0 |
Payments of notes payable | (405,750) | (27,056) |
Payment of loan fees | (220,773) | 0 |
Payments of deferred stock issuance costs | (556,604) | (971,716) |
Net cash provided by financing activities | 6,785,506 | 14,416,328 |
Net (Decrease) Increase In Cash | (3,064,513) | 13,941,905 |
Cash at the Beginning of the Period | 10,044,977 | 2,140,298 |
Cash at the End of the Period | 6,980,464 | 16,082,203 |
Supplemental Disclosure: | ||
Cash paid for interest | $ 837,127 | $ 685,544 |
ORGANIZATION AND OPERATION
ORGANIZATION AND OPERATION | 9 Months Ended |
Sep. 30, 2017 | |
Organization And Operation [Abstract] | |
Nature of Operations [Text Block] | NOTE 1. ORGANIZATION AND OPERATION Reven Housing REIT, Inc. is a Maryland corporation (Reven Housing REIT, Inc., which along with its wholly-owned subsidiaries, are also referred to herein collectively as the “Company”) which acquires portfolios of occupied and rented single-family residential properties throughout the United States with the objective of receiving income from rental property activity and future profits from the sale of rental property at appreciated values. As of September 30, 2017, the Company owned 755 single-family homes located in the Houston, Jacksonville, Memphis, Birmingham, and Atlanta metropolitan areas. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”), as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”), and the rules and regulations of the Securities Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the 2016 Annual Report on Form 10-K filed with the SEC on March 24, 2017. The results of operations for the period ended September 30, 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, Reven Housing Alabama, LLC and Reven Housing Tennessee, LLC. All significant intercompany accounts and transactions have been eliminated in consolidation. The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet dates and reported amounts of revenues and expenses for the periods presented. Accordingly, actual results could differ from those estimates. The carrying value of the Company’s financial instruments, as reported in the accompanying consolidated balance sheets, approximates fair value due to their short term nature. The Company’s short term financial instruments consist of cash, rents and other receivables, escrow deposits, accounts payable and accrued liabilities, and resident security deposits. The carrying value of the Company’s notes payable, as reported in the accompanying consolidated balance sheets, approximates fair value due to the fact that their interest rate, security, and payment terms are similar to other debt instruments currently being issued. Prior to January 1, 2017, the Company accounted for its investments in single-family residential properties as business combinations under the guidance of ASC Topic 805, Business Combinations In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business Building improvements and buildings are depreciated over estimated useful lives of approximately 10 27.5 The Company assesses its investments in single-family residential properties for impairment whenever events or changes in business circumstances indicate that carrying amounts of the assets may not be fully recoverable. When such events occur, management determines whether there has been impairment by comparing the asset’s carrying value with its fair value. Should impairment exist, the asset is written down to its estimated fair value. The Company did not recognize any impairment losses for the nine months ended September 30, 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 primarily represent the amount of security deposits and net rental funds which are held by the property managers on behalf of the Company. Escrow deposits include refundable and non-refundable cash and earnest money on deposit with third parties for future property purchases. 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 notes payable are deferred and amortized using the effective interest method over the term of the respective notes as a component of interest expense on the consolidated statements of operations and presented as an offset to notes payable on the consolidated balance sheets. 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. 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 September 30, 2017 and December 31, 2016, the Company had $ 679,409 552,698 Residential properties are leased to tenants under short term rental agreements of generally one year and revenue is recognized over the lease term on a straight-line basis. The Company has reclassified certain prior period amounts to conform to the current period’s presentation. The Company intends to elect to be taxed as a real estate investment trust (“REIT”), as defined in the Internal Revenue Code, commencing for the year ending December 31, 2017. 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 A total of 496,359 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 nine months ended September 30, 2017 and 2016, potentially dilutive securities excluded from the calculations were 263,588 In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows, Restricted Cash |
INVESTMENTS IN SINGLE-FAMILY RE
INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES | 9 Months Ended |
Sep. 30, 2017 | |
Residential Homes [Abstract] | |
Residential Homes [Text Block] | NOTE 3. INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES The following table summarizes the Company’s investments in single-family residential properties. Investments in Single-Family Residential Number of Homes Land Buildings and Improvements Properties, Gross Total at December 31, 2016 624 $ 8,579,550 $ 39,419,038 $ 47,998,588 Acquisitions 133 1,873,650 8,243,389 10,117,039 Improvements - - 668,268 668,268 Sales (2) (23,553) (118,559) (142,112) Loss due to property damage - - (2,600,000) (2,600,000) Total at September 30, 2017 755 $ 10,429,647 $ 45,612,136 $ 56,041,783 Hurricane Harvey and Hurricane Irma During the quarter ended September 30, 2017, a significant number of the Company’s properties in Houston, TX and Jacksonville, FL incurred storm related damages from Hurricane Harvey and Hurricane Irma. The Company has estimated the damages to the properties to be approximately $ 2.6 1,650,000 950,000 The Company received approximately $ 500,000 1,150,000 The Company is actively repairing all of its damaged homes in both Houston, TX and Jacksonville, FL and anticipates that all properties will be restored to their original operating condition or better. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 9 Months Ended |
Sep. 30, 2017 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 4. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2017 2016 Accounts payable $ 107,459 $ 248,456 Real estate taxes payable 898,590 667,811 Accrued compensation, board fees and other 380,960 300,500 Interest payable 88,634 66,468 $ 1,475,643 $ 1,283,235 |
NOTES PAYABLE
NOTES PAYABLE | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 5. NOTES PAYABLE On January 31, 2017, Reven Housing Texas 2, LLC, a wholly-owned subsidiary of the Company, received loan proceeds and issued a promissory note in the principal amount of $ 5,020,000 31,759 4.50 On April 4, 2017, the Company entered into loan modification agreements with the regional bank on four notes mentioned in the summary below whereby the interest rate on all four loans was modified from a 25 April 5, 2020 2 1 On August 1, 2017, Reven Housing Georgia, LLC, a wholly owned subsidiary of the Company, received loan proceeds and issued a promissory note in the principal amount of $ 1,793,633 4.5 July 5, 2020 On August 22, 2017, Reven Housing Tennessee, LLC, a wholly owned subsidiary of the Company, received loan proceeds and issued an additional promissory note in the principal amount of $ 1,155,000 4.5 September 5, 2020 2017 2016 Interest Rate Maturity Date Note Reven Housing Texas, LLC $ 7,353,791 $ 7,502,504 4.50% April, 2020 Reven Housing Texas 2, LLC 4,930,318 - 4.50% Jan, 2022 Reven Housing Tennessee, LLC 3,852,432 3,908,829 4.50% April, 2020 Reven Housing Florida, LLC 3,462,437 3,526,794 4.50% April, 2020 Reven Housing Florida 2, LLC 4,832,383 4,875,898 4.50% April, 2020 Reven Housing Georgia, LLC 1,790,547 - 4.50% July, 2020 Reven Housing Tennessee, LLC 1,155,000 - 4.50% Sept, 2020 27,376,908 19,814,025 Less deferred loan fees, net (472,304) (359,648) Notes payable, net $ 26,904,604 $ 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 $ 472,304 359,648 During the three months ended September 30, 2017 and 2016, the Company incurred $ 342,253 260,506 39,998 30,327 967,410 775,849 108,117 90,981 |
STOCKHOLDERS_ EQUITY AND STOCK
STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 6. STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION On October 16, 2014, the Company issued 425,000 106,250 318,750 The Company has outstanding warrants that allow holders to purchase up to 263,588 4.00 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 7. INCOME TAXES The Company intends to elect REIT status effective for the year ended December 31, 2017. The Company is generally not subject to income taxes assuming it complies with the specific rules applicable to REITs. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 8. RELATED PARTY TRANSACTIONS The Company sub-leased office space on a month-to-month basis from Reven Capital, LLC, which is wholly-owned by Chad M. Carpenter, a shareholder of the Company and its Chief Executive Officer, through January 31, 2016. This arrangement was terminated upon the Company relocating its office space and signing a new lease agreement with an unrelated party. Reven Capital, LLC currently subleases office space from the Company on a month to month basis for a monthly rental of $ 500 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 9. COMMITMENTS AND CONTINGENCIES Legal and Regulatory The Company is subject to potential liability under laws and government regulations and various claims and legal actions arising in the ordinary course of the Company’s business. Liabilities are established for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts established for those claims. Based on information currently available, management is not aware of any legal or regulatory claims that would have a material effect on the Company’s consolidated financial statements and, therefore, no accrual has been recorded as of the periods ended September 30, 2017 and 2016. |
BASIS OF PRESENTATION AND SIG15
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”), as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”), and the rules and regulations of the Securities Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the 2016 Annual Report on Form 10-K filed with the SEC on March 24, 2017. The results of operations for the period ended September 30, 2017 are not necessarily indicative of the operating results for the full year. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Reven Housing REIT OP, L.P., Reven Housing GP, LLC, Reven Housing REIT TRS, LLC, Reven Housing Georgia, LLC, Reven Housing Texas, LLC, Reven Housing Texas 2, LLC, Reven Housing Florida, LLC, Reven Housing Florida 2, LLC, Reven Housing Alabama, LLC and Reven Housing Tennessee, LLC. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet dates and reported amounts of revenues and expenses for the periods presented. Accordingly, actual results could differ from those estimates. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Financial Instruments The carrying value of the Company’s financial instruments, as reported in the accompanying consolidated balance sheets, approximates fair value due to their short term nature. The Company’s short term financial instruments consist of cash, rents and other receivables, escrow deposits, accounts payable and accrued liabilities, and resident security deposits. The carrying value of the Company’s notes payable, as reported in the accompanying consolidated balance sheets, approximates fair value due to the fact that their interest rate, security, and payment terms are similar to other debt instruments currently being issued. |
Property Acquisitions [Policy Text Block] | Investments in Single-Family Residential Properties Prior to January 1, 2017, the Company accounted for its investments in single-family residential properties as business combinations under the guidance of ASC Topic 805, Business Combinations In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business Building improvements and buildings are depreciated over estimated useful lives of approximately 10 27.5 The Company assesses its investments in single-family residential properties for impairment whenever events or changes in business circumstances indicate that carrying amounts of the assets may not be fully recoverable. When such events occur, management determines whether there has been impairment by comparing the asset’s carrying value with its fair value. Should impairment exist, the asset is written down to its estimated fair value. The Company did not recognize any impairment losses for the nine months ended September 30, 2017 and 2016. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash The Company maintains its cash at quality financial institutions. The combined account balances at one or more institutions typically exceed the federal insurance coverage and thus there is a concentration of credit risk related to amounts on deposit in excess of available federal insurance coverage. The Company believes that the risk is not significant, as the Company does not anticipate the financial institutions’ non-performance. |
Advances to Property Manager [Policy Text Block] | Rents and Other Receivables Rents and other receivables primarily represent the amount of security deposits and net rental funds which are held by the property managers on behalf of the Company. |
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. 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. |
Deferred Loan Fees, Policy [Policy Text Block] | Deferred Loan Fees Costs incurred in the placement of the Company’s notes payable are deferred and amortized using the effective interest method over the term of the respective notes as a component of interest expense on the consolidated statements of operations and presented as an offset to notes payable on the consolidated balance sheets. |
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. These costs are netted against additional paid-in capital as a cost of the stock issuance upon closing of the respective stock placement. |
Security Deposits [Policy Text Block] | Resident Security Deposits Resident security deposits represent amounts deposited by tenants at the inception of the lease. As of September 30, 2017 and December 31, 2016, the Company had $ 679,409 552,698 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Residential properties are leased to tenants under short term rental agreements of generally one year and revenue is recognized over the lease term on a straight-line basis. |
Reclassification, Policy [Policy Text Block] | Reclassifications The Company has reclassified certain prior period amounts to conform to the current period’s presentation. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company intends to elect to be taxed as a real estate investment trust (“REIT”), as defined in the Internal Revenue Code, commencing for the year ending December 31, 2017. Accordingly, the Company does not expect to be subject to federal income tax, provided that it continues to qualify as a REIT and distributions to the stockholders equal or exceed REIT taxable income. Qualification and taxation as a REIT depends upon the Company’s ability to meet the various qualification tests imposed under the Internal Revenue Code related to the percentage of income that are earned from specified sources, the percentage of assets that fall within specified categories, the diversity of capital stock ownership, and the percentage of earnings that are distributed. Accordingly, no assurance can be given that the Company will be organized or be able to operate in a manner to qualify or remain qualified as a REIT. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal and state income tax (including any applicable alternative minimum tax) on its taxable income at regular corporate tax rates, and the Company may be ineligible to qualify as a REIT for four subsequent tax years. Even if the Company qualifies as a REIT, it may be subject to certain state or local income taxes. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Incentive Compensation Plan During 2012, the Company established the 2012 Incentive Compensation Plan, which was subsequently amended and restated in December 2013 (“2012 Plan”). The 2012 Plan allows for the grant of options and other awards representing up to 1,650,000 A total of 496,359 |
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 nine months ended September 30, 2017 and 2016, potentially dilutive securities excluded from the calculations were 263,588 |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows, Restricted Cash |
INVESTMENTS IN SINGLE-FAMILY 16
INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Residential Homes [Abstract] | |
Schedule of Real Estate Properties [Table Text Block] | The homes are generally leased to individual tenants under leases with terms of one year or less. Investments in Single-Family Residential Number of Homes Land Buildings and Improvements Properties, Gross Total at December 31, 2016 624 $ 8,579,550 $ 39,419,038 $ 47,998,588 Acquisitions 133 1,873,650 8,243,389 10,117,039 Improvements - - 668,268 668,268 Sales (2) (23,553) (118,559) (142,112) Loss due to property damage - - (2,600,000) (2,600,000) Total at September 30, 2017 755 $ 10,429,647 $ 45,612,136 $ 56,041,783 |
ACCOUNTS PAYABLE AND ACCRUED 17
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | At September 30, 2017 and December 31, 2016, accounts payable and accrued liabilities consisted of the following: 2017 2016 Accounts payable $ 107,459 $ 248,456 Real estate taxes payable 898,590 667,811 Accrued compensation, board fees and other 380,960 300,500 Interest payable 88,634 66,468 $ 1,475,643 $ 1,283,235 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | A summary of the Company’s notes payable as of September 30, 2017 and December 31, 2016 is as follows: 2017 2016 Interest Rate Maturity Date Note Reven Housing Texas, LLC $ 7,353,791 $ 7,502,504 4.50% April, 2020 Reven Housing Texas 2, LLC 4,930,318 - 4.50% Jan, 2022 Reven Housing Tennessee, LLC 3,852,432 3,908,829 4.50% April, 2020 Reven Housing Florida, LLC 3,462,437 3,526,794 4.50% April, 2020 Reven Housing Florida 2, LLC 4,832,383 4,875,898 4.50% April, 2020 Reven Housing Georgia, LLC 1,790,547 - 4.50% July, 2020 Reven Housing Tennessee, LLC 1,155,000 - 4.50% Sept, 2020 27,376,908 19,814,025 Less deferred loan fees, net (472,304) (359,648) Notes payable, net $ 26,904,604 $ 19,454,377 |
BASIS OF PRESENTATION AND SIG19
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2012 | |
Accounting Policies [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 263,588 | 552,698 | ||
Security Deposit | $ 679,409 | $ 552,698 | ||
Buildings and Improvements [Member] | Minimum [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 10 years | |||
Buildings and Improvements [Member] | Maximum [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 27 years 6 months | |||
Incentive Compensation Plan 2012 [Member] | ||||
Accounting Policies [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,650,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Description | Under the 2012 Plan, options may be granted at an exercise price greater than or equal to the market value at the date of the grant, for owners of 10% or more of the voting shares, at an exercise price of not less than 110% of the market value. Awards are exercisable over a period of time as determined by a committee designated by the Board of Directors, but in no event, longer than ten years. | |||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 496,359 |
INVESTMENTS IN SINGLE-FAMILY 20
INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES (Details) | 9 Months Ended | |
Sep. 30, 2017USD ($)Number | Dec. 31, 2016Number | |
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | Number | 755 | 624 |
Acquisitions | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | Number | 133 | |
Improvements | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | Number | 0 | |
Sales | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | Number | (2) | |
Loss due to property damage | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | Number | 0 | |
Land | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment at Beginning | $ 8,579,550 | |
Property Plant and Equipment, Acquisitions | 1,873,650 | |
Property Plant And Equipment, Improvements | 0 | |
Property, Plant and Equipment, Sales | (23,553) | |
Property Plant And Equipment, Loss due to property damage | 0 | |
Property Plant and Equipment at Ending | 10,429,647 | |
Buildings and Improvements | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment at Beginning | 39,419,038 | |
Property Plant and Equipment, Acquisitions | 8,243,389 | |
Property Plant And Equipment, Improvements | 668,268 | |
Property, Plant and Equipment, Sales | (118,559) | |
Property Plant And Equipment, Loss due to property damage | (2,600,000) | |
Property Plant and Equipment at Ending | 45,612,136 | |
Investments In Single-Family Residential Properties [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment at Beginning | 47,998,588 | |
Property Plant and Equipment, Acquisitions | 10,117,039 | |
Property Plant And Equipment, Improvements | 668,268 | |
Property, Plant and Equipment, Sales | (142,112) | |
Property Plant And Equipment, Loss due to property damage | (2,600,000) | |
Property Plant and Equipment at Ending | $ 56,041,783 |
INVESTMENTS IN SINGLE-FAMILY 21
INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Loss from Catastrophes | $ 978,181 | $ 0 | $ 895,194 | $ 0 |
Proceeds from Insurance Settlement, Investing Activities | 554,806 | $ 0 | ||
Uninsured Risk [Member] | ||||
Insurance Settlements Receivable | 1,150,000 | 1,150,000 | ||
Hurricane [Member] | ||||
Liability for Catastrophe Claims, Carrying Amount | 2,600,000 | 2,600,000 | ||
Proceeds from Insurance Settlement, Investing Activities | 500,000 | |||
Hurricane [Member] | Uninsured Risk [Member] | ||||
Insurance Settlements Receivable | 1,650,000 | $ 1,650,000 | ||
Loss from Catastrophes | $ 950,000 |
ACCOUNTS PAYABLE AND ACCRUED 22
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts Payable And Accrued Expenses [Line Items] | ||
Accounts payable | $ 107,459 | $ 248,456 |
Real estate taxes payable | 898,590 | 667,811 |
Accrued compensation, board fees and other | 380,960 | 300,500 |
Interest payable | 88,634 | 66,468 |
Accounts payable and accrued liabilities | $ 1,475,643 | $ 1,283,235 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | Aug. 01, 2017 | Aug. 22, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Note | ||||
Notes payable, net | $ 26,904,604 | $ 19,454,377 | ||
Notes Payable to Banks [Member] | ||||
Note | ||||
Long-term Debt, Gross | 27,376,908 | 19,814,025 | ||
Less deferred loan fees, net | (472,304) | (359,648) | ||
Notes payable, net | 26,904,604 | 19,454,377 | ||
Reven Housing Texas, LLC [Member] | Notes Payable to Banks [Member] | ||||
Note | ||||
Long-term Debt, Gross | $ 7,353,791 | 7,502,504 | ||
Debt Instrument, Maturity Date | Apr. 30, 2020 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||
Reven Housing Texas 2 LLC [Member] | Notes Payable to Banks [Member] | ||||
Note | ||||
Long-term Debt, Gross | $ 4,930,318 | 0 | ||
Debt Instrument, Maturity Date | Jan. 31, 2022 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||
Reven Housing Tennessee, LLC [Member] | Notes Payable to Banks [Member] | ||||
Note | ||||
Long-term Debt, Gross | $ 3,852,432 | 3,908,829 | ||
Debt Instrument, Maturity Date | Apr. 30, 2020 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||
Reven Housing Florida, LLC [Member] | Notes Payable to Banks [Member] | ||||
Note | ||||
Long-term Debt, Gross | $ 3,462,437 | 3,526,794 | ||
Debt Instrument, Maturity Date | Apr. 30, 2020 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||
Reven Housing Florida 2, LLC [Member] | Notes Payable to Banks [Member] | ||||
Note | ||||
Long-term Debt, Gross | $ 4,832,383 | 4,875,898 | ||
Debt Instrument, Maturity Date | Apr. 30, 2020 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||
Reven Housing Georgia, LLC [Member] | Notes Payable to Banks [Member] | ||||
Note | ||||
Long-term Debt, Gross | $ 1,790,547 | 0 | ||
Debt Instrument, Maturity Date | Jul. 5, 2020 | Jul. 31, 2020 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | ||
Reven Housing Tennessee 2, LLC [Member] | Notes Payable to Banks [Member] | ||||
Note | ||||
Long-term Debt, Gross | $ 1,155,000 | $ 0 | ||
Debt Instrument, Maturity Date | Sep. 5, 2020 | Sep. 30, 2020 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% |
NOTES PAYABLE (Details Textual)
NOTES PAYABLE (Details Textual) - USD ($) | Aug. 01, 2017 | Apr. 04, 2017 | Aug. 22, 2017 | Jan. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Notes Payable [Line Items] | |||||||||
Interest Expense, Debt | $ 342,253 | $ 260,506 | $ 967,410 | $ 775,849 | |||||
Amortization of Financing Costs | 39,998 | $ 30,327 | 108,117 | 90,981 | |||||
Proceeds From Notes Payable | 7,968,633 | $ 0 | |||||||
Notes Payable to Banks [Member] | |||||||||
Notes Payable [Line Items] | |||||||||
Debt Issuance Costs, Net | $ 472,304 | $ 472,304 | $ 359,648 | ||||||
Notes Payable [Member] | |||||||||
Notes Payable [Line Items] | |||||||||
Debt Instrument, Maturity Date | Apr. 5, 2020 | ||||||||
Debt Instrument, Interest Rate Terms | rate of 1% over the prime rate to a fixed rate of 4.5% per annum. | ||||||||
Debt Instrument, Periodic Payment, Total | $ 31,759 | ||||||||
Prepayment Penalty Percentage For Following Years | 1.00% | ||||||||
Prepayment Penalty Percentage First Year | 2.00% | ||||||||
Debt Instrument, Term | 25 years | ||||||||
Promissory Note [Member] | |||||||||
Notes Payable [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||||||
Debt Instrument, Face Amount | $ 5,020,000 | ||||||||
Reven Housing Georgia, LLC [Member] | Notes Payable to Banks [Member] | |||||||||
Notes Payable [Line Items] | |||||||||
Debt Instrument, Maturity Date | Jul. 5, 2020 | Jul. 31, 2020 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | 4.50% | ||||||
Debt Instrument, Term | 25 years | ||||||||
Proceeds From Notes Payable | $ 1,793,633 | ||||||||
Reven Housing Tennessee 2, LLC [Member] | Notes Payable to Banks [Member] | |||||||||
Notes Payable [Line Items] | |||||||||
Debt Instrument, Maturity Date | Sep. 5, 2020 | Sep. 30, 2020 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | 4.50% | ||||||
Debt Instrument, Term | 25 years | ||||||||
Proceeds From Notes Payable | $ 1,155,000 |
STOCKHOLDERS' EQUITY AND STOCK
STOCKHOLDERS' EQUITY AND STOCK COMPENSATION (Details Textual) - $ / shares | 1 Months Ended | 9 Months Ended | 12 Months Ended |
Oct. 16, 2014 | Sep. 30, 2017 | Dec. 31, 2016 | |
Incentive Compensation Plan 2012 [Member] | |||
STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION [Line Items] | |||
Stock Issued During Period, Shares, Issued for Services | 425,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 106,250 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 318,750 | ||
Private Placement [Member] | |||
STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION [Line Items] | |||
Warrants To Purchase Common Stock | 263,588 | ||
Share Price | $ 4 | ||
Investment Warrants Expiration Date | Sep. 27, 2018 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Textual) | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Related Party Transaction [Line Items] | |
Operating Leases, Rent Expense | $ 500 |