Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Reven Housing REIT, Inc. | |
Entity Current Reporting Status | Yes | |
Entity Central Index Key | 0001487782 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | RVEN | |
Entity Common Stock, Shares Outstanding | 11,038,737 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Investments in single-family residential properties: | ||
Land | $ 14,476,461 | $ 13,642,461 |
Buildings and improvements | 70,216,778 | 64,781,322 |
Real Estate Investment Property, at Cost, Total | 84,693,239 | 78,423,783 |
Accumulated depreciation | (7,955,740) | (6,591,066) |
Investments in single-family residential properties, net | 76,737,499 | 71,832,717 |
Cash | 11,997,147 | 8,252,460 |
Restricted cash | 1,760,758 | 1,179,126 |
Rent and other receivables | 1,035,721 | 730,345 |
Lease origination costs, net | 488,650 | 473,739 |
Other assets, net | 979,167 | 633,135 |
Total Assets | 92,998,942 | 83,101,522 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued liabilities | 2,711,376 | 1,572,713 |
Resident security deposits | 912,500 | 825,233 |
Notes payable, net | 60,449,178 | 50,132,147 |
Total Liabilities | 64,073,054 | 52,530,093 |
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; 11,038,737 and 10,951,579 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 11,039 | 10,952 |
Additional paid-in capital | 42,857,528 | 42,569,520 |
Accumulated deficit | (13,942,679) | (12,009,043) |
Total Stockholders' Equity | 28,925,888 | 30,571,429 |
Total Liabilities and Stockholders' Equity | $ 92,998,942 | $ 83,101,522 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
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 | 11,038,737 | 10,951,579 |
Common stock, shares outstanding | 11,038,737 | 10,951,579 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue: | ||||
Rental Income | $ 2,899,554 | $ 2,232,786 | $ 5,655,285 | $ 4,412,078 |
Expenses: | ||||
Property operating and maintenance | 944,450 | 682,431 | 1,866,238 | 1,300,594 |
Real estate taxes | 433,577 | 369,545 | 870,081 | 732,916 |
Depreciation and amortization | 784,536 | 514,858 | 1,526,066 | 1,033,896 |
General and administration | 920,002 | 575,413 | 1,583,719 | 1,191,832 |
Noncash share-based compensation | 0 | 0 | 39,375 | 0 |
Total expenses | 3,082,565 | 2,142,247 | 5,885,479 | 4,259,238 |
Operating (loss) income | (183,011) | 90,539 | (230,194) | 152,840 |
Other income (expenses): | ||||
Casualty (loss) gain, net | 0 | 25,758 | (25,000) | 76,133 |
Previously deferred stock issuance costs | 0 | (674,144) | 0 | (674,144) |
Other | 36,782 | 7,201 | 67,380 | 14,995 |
Interest expense | (797,641) | (435,171) | (1,525,765) | (835,763) |
Total other income (expenses), net | (760,859) | (1,076,356) | (1,483,385) | (1,418,779) |
Net loss | $ (943,870) | $ (985,817) | $ (1,713,579) | $ (1,265,939) |
Net loss per share | ||||
(Basic and fully diluted) | $ (0.09) | $ (0.09) | $ (0.16) | $ (0.12) |
Weighted average number of common shares outstanding | 11,036,535 | 10,769,530 | 11,020,965 | 10,764,063 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balances at Dec. 31, 2017 | $ 10,734 | $ 41,677,465 | $ (8,745,003) | $ 32,943,196 |
Balances (in shares) at Dec. 31, 2017 | 10,734,025 | |||
Stock issued under share-based compensation plans | $ 36 | 164,340 | 0 | 164,376 |
Stock issued under share-based compensation plans (in shares) | 35,505 | |||
Net loss | $ 0 | 0 | (1,265,939) | (1,265,939) |
Balances at Jun. 30, 2018 | $ 10,770 | 41,841,805 | (10,010,942) | 31,841,633 |
Balances (in shares) at Jun. 30, 2018 | 10,769,530 | |||
Balances at Mar. 31, 2018 | $ 10,770 | 41,841,805 | (9,025,125) | 32,827,450 |
Balances (in shares) at Mar. 31, 2018 | 10,769,530 | |||
Net loss | $ 0 | 0 | (985,817) | (985,817) |
Balances at Jun. 30, 2018 | $ 10,770 | 41,841,805 | (10,010,942) | 31,841,633 |
Balances (in shares) at Jun. 30, 2018 | 10,769,530 | |||
Balances at Dec. 31, 2018 | $ 10,952 | 42,569,520 | (12,009,043) | 30,571,429 |
Balances (in shares) at Dec. 31, 2018 | 10,951,579 | |||
Stock issued under share-based compensation plans | $ 87 | 288,008 | 0 | 288,095 |
Stock issued under share-based compensation plans (in shares) | 87,158 | |||
Distributions on common stock ($0.01 per share) | $ 0 | 0 | (220,057) | (220,057) |
Net loss | 0 | 0 | (1,713,579) | (1,713,579) |
Balances at Jun. 30, 2019 | $ 11,039 | 42,857,528 | (13,942,679) | 28,925,888 |
Balances (in shares) at Jun. 30, 2019 | 11,038,737 | |||
Balances at Mar. 31, 2019 | $ 11,027 | 42,818,165 | (12,888,404) | 29,940,788 |
Balances (in shares) at Mar. 31, 2019 | 11,026,948 | |||
Stock issued under share-based compensation plans | $ 12 | 39,363 | 0 | 39,375 |
Stock issued under share-based compensation plans (in shares) | 11,789 | |||
Distributions on common stock ($0.01 per share) | $ 0 | 0 | (110,405) | (110,405) |
Net loss | 0 | 0 | (943,870) | (943,870) |
Balances at Jun. 30, 2019 | $ 11,039 | $ 42,857,528 | $ (13,942,679) | $ 28,925,888 |
Balances (in shares) at Jun. 30, 2019 | 11,038,737 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 1 Months Ended | 3 Months Ended |
Apr. 30, 2019 | Jun. 30, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||
Distribution of common stock (Per share) | $ 0.01 | $ 0.01 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows From Operating Activities: | ||
Net loss | $ (1,713,579) | $ (1,265,939) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 1,526,066 | 1,033,896 |
Noncash share-based compensation | 39,375 | 0 |
Amortization of deferred loan fees | 105,950 | 101,988 |
Previously deferred stock issuance costs | 0 | 674,144 |
Changes in operating assets and liabilities: | ||
Rent and other receivables | (305,376) | 15,848 |
Other assets | (346,032) | (295,172) |
Accounts payable and accrued liabilities | 1,387,382 | (74,220) |
Resident security deposits | 87,267 | 56,813 |
Net cash provided by operating activities | 781,053 | 247,358 |
Cash Flows From Investing Activities: | ||
Acquisitions of single-family residential properties | (5,191,608) | (1,681,413) |
Capital improvements to single-family residential properties | (1,077,848) | (1,510,195) |
Insurance proceeds received for property damages | 0 | 1,390,298 |
Lease origination costs | (176,303) | (134,817) |
Net cash used in investing activities | (6,445,759) | (1,936,127) |
Cash Flows From Financing Activities: | ||
Proceeds from notes payable | 10,523,000 | 2,736,630 |
Payments of notes payable | 0 | (603,699) |
Payment of loan fees | (311,918) | (65,161) |
Payment of stock issuance costs | 0 | (120,848) |
Distributions on common stock | (220,057) | 0 |
Net cash provided by financing activities | 9,991,025 | 1,946,922 |
Net Increase In Cash and Restricted Cash | 4,326,319 | 258,153 |
Cash and Restricted Cash at the Beginning of the Period | 9,431,586 | 6,442,322 |
Cash and Restricted Cash at the End of the Period | 13,757,905 | 6,700,475 |
Supplemental Disclosure: | ||
Cash paid for interest | $ 1,385,188 | $ 720,769 |
ORGANIZATION AND OPERATION
ORGANIZATION AND OPERATION | 6 Months Ended |
Jun. 30, 2019 | |
ORGANIZATION AND OPERATION | |
ORGANIZATION AND OPERATION | 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 located in 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 June 30, 2019, the Company owned 993 single-family homes in the Houston, Jacksonville, Memphis, Birmingham, Oklahoma City, and Atlanta metropolitan areas. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2019 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, 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 2018 Annual Report on Form 10‑K filed with the SEC on March 21, 2019. The results of operations for the period ended June 30, 2019 are not necessarily indicative of the operating results for the full year. Principles of Consolidation The accompanying condensed unaudited condensed consolidated financial statements include the accounts of Reven Housing REIT, Inc, Reven Housing REIT OP, LP, a Delaware limited partnership which is its 100% owned operating partnership, and its wholly-owned subsidiaries, which have been formed primarily for financing purposes. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the condensed 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. Financial Instruments The carrying value of the Company’s financial instruments, as reported in the accompanying condensed consolidated balance sheets, approximates fair value due to their short-term nature. The Company’s short-term financial instruments consist of cash, restricted 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 condensed consolidated balance sheets, approximates fair value due to their market interest rate and because their security and payment terms are similar to other debt instruments currently being issued. Investments in Single-Family Residential Properties The Company accounts for its investments in single-family residential properties as asset acquisitions and records these acquisitions at their purchase price. The purchase price is allocated between land, building, improvements and existing leases based upon their relative fair values at the date of acquisition. The purchase price for purposes of this allocation is inclusive of acquisition costs which typically include legal fees, title fees, property inspection and valuation fees, as well as other closing costs. 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 either the six-month periods ended June 30, 2019 or 2018. 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. Restricted Cash Pursuant to the terms of the note payable referred to in Note 5, the Company is required to establish, maintain, and fund monthly specified reserve accounts. These reserve accounts include property tax reserves, insurance reserves, and capital expenditure reserves. 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. 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 loans as a component of interest expense on the condensed consolidated statements of operations. These deferred loan fees are offset against the notes payable in the accompanying condensed consolidated balance sheets. Security Deposits Security deposits represent amounts deposited by tenants at the inception of the lease. As of June 30, 2019 and December 31, 2018, the Company had $912,500 and $825,233, respectively, in resident security deposits. Security deposits are refundable, net of any outstanding charges and fees, upon expiration of the underlying lease. 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. Income Taxes The Company is currently evaluating whether 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, 2018. The Company has until the extended due date of its December 31, 2018 tax return to formally make this election. Accordingly, should the Company elect REIT status, it 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. Should the Company not elect to be taxed as a REIT, the Company will not be subject to federal income tax for periods ended June 30, 2019 and 2018 due to significant operating losses and net operating loss carry-forwards. 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. 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. During January 2019, 75,369 shares were issued to officers, directors and employees in settlement of a portion of their accrued compensation for the year ended December 31, 2018. In April 2019, an additional 11,789 shares were issued to certain directors as payment for accrued 2019 compensation. A total of 628,940 shares have been issued under the 2012 plan as of June 30, 2019. 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. 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. New Accounting Pronouncements In May 2014, the FASB issued ASU 2014‑09, Revenue from Contracts with Customers (Topic 606) , which outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The standard can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In July 2015, the FASB issued ASU 2015‑14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which delays the effective date of ASU 2014‑09 by one year. In March 2016, the FASB issued ASU 2016‑08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. ASU 2014‑09, ASU 2015‑14 and ASU 2016‑08 are herein collectively referred to as the "New Revenue Recognition Standards". The New Revenue Recognition Standards are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted but not before annual periods beginning after December 15, 2016. The Company has adopted the New Revenue Recognition Standards effective as of January 1, 2018, and has applied the modified retrospective method. The Company has evaluated its revenue streams and, as they are primarily related to leasing activities which are scoped out of the New Revenue Recognition Standards, has determined that the adoption of such standards does not have a material impact on the consolidated financial statements and thus there is no cumulative adjustment upon adoption. The Company evaluated its real estate sales contracts through December 31, 2018 and determined they qualified as sales to noncustomers. In February 2016, the FASB issued ASU 2016‑02, Leases , a new lease standard which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). Under ASU 2016‑02, lessor accounting is substantially similar to the past model but aligned with certain changes to the lessee model and ASU 2014‑09. The new standard requires lessors to account for leases using an approach that is substantially equivalent to past guidance for sales-type leases, direct financing leases and operating leases. The Company’s rental revenue is primarily generated from short-term operating leases. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to previous guidance. The new standard had an impact on the Company’s consolidated financial statements as the Company has an operating office lease arrangement for which it is the lessee. The new standard was adopted by the Company beginning on January 1, 2019 using the modified retrospective approach. In accordance with this standard the Company has recorded a right-of-use asset and a corresponding other liability of approximately $165,000 as of June 30, 2019 relating to its operating office lease arrangement for which it is the lessee. |
INVESTMENTS IN SINGLE-FAMILY RE
INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES | 6 Months Ended |
Jun. 30, 2019 | |
INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES | |
INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES | 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. Investments in Single-Family Number Buildings and Residential of Homes Land Improvements Properties, Gross Total at December 31, 2018 965 $ 13,642,461 $ 64,781,322 $ 78,423,783 Purchases and improvements during 2019: Acquisitions 28 834,000 4,357,608 5,191,608 Improvements — — 1,077,848 1,077,848 Total at June 30, 2019 993 $ 14,476,461 $ 70,216,778 $ 84,693,239 Accumulated depreciation (7,955,740) Investments in single-family rental properties, net at June 30, 2019 $ 76,737,499 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 6 Months Ended |
Jun. 30, 2019 | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | NOTE 4. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES At June 30, 2019 and December 31, 2018, accounts payable and accrued liabilities consisted of the following: 2019 2018 Accounts payable $ 213,328 $ 76,523 Property insurance payable 753,793 — Real estate taxes payable 879,364 781,182 Accrued compensation, board fees and other 455,550 505,365 Interest payable 244,270 209,643 Operating lease obligation 165,071 — $ 2,711,376 $ 1,572,713 |
NOTES PAYABLE
NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2019 | |
NOTES PAYABLE | |
NOTES PAYABLE | NOTE 5. NOTES PAYABLE On February 11, 2019, the Company through a wholly-owned subsidiary, entered into a loan agreement with Arbor Agency Lending, LLC, an approved seller/servicer for Federal Home Loan Mortgage Corporation (Freddie Mac). The loan agreement provides for a loan to the Company in the original principal amount of $10,523,000. The loan is a seven-year, interest-only payable loan with principal due and payable at its seven-year maturity, and accruing interest at a fixed rate of 4.72% per annum. The loan is secured by 143 of the Company’s single-family homes. Proceeds of approximately $2.9 million were utilized to purchase 12 homes in Oklahoma City, Oklahoma. Additionally, the Company received approximately $7.4 million of loan proceeds, net of transaction fees and the purchase of homes noted above, which the Company intends to use for future acquisitions of single-family homes and for working capital purposes. A summary of the Company’s notes payable as of June 30, 2019 and December 31, 2018 is as follows: Interest Rate 2019 2018 (Fixed) Maturity Date Note Reven Housing Funding 1, LLC $ 51,362,000 $ 51,362,000 4.74 % October, 2025 Reven Housing Funding 2, LLC 10,523,000 — 4.72 % March, 2026 61,885,000 51,362,000 Less deferred loan fees, net (1,435,822) (1,229,853) Notes payable, net $ 60,449,178 $ 50,132,147 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 condensed 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 $1,435,822 and $1,229,853 as of June 30, 2019 and December 31, 2018, respectively. During the three months ended June 30, 2019 and 2018, the Company incurred $797,641 and $435,171, respectively, of interest expense related to the notes payable, which includes $56,688 and $50,994, respectively, of amortization of deferred loan fees. During the six months ended June 30, 2019 and 2018, the Company incurred $1,525,765 and $835,763, respectively, of interest expense related to the notes payable, which includes $105,950 and $101,988, respectively, of amortization of deferred loan fees. |
STOCKHOLDERS' EQUITY AND STOCK
STOCKHOLDERS' EQUITY AND STOCK COMPENSATION | 6 Months Ended |
Jun. 30, 2019 | |
STOCKHOLDERS' EQUITY AND STOCK COMPENSATION | |
STOCKHOLDERS' EQUITY AND STOCK COMPENSATION | 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. During January 2019, the Company issued 75,369 shares of the Company’s common stock under the 2012 Plan to certain directors, officers, and consultants of the Company as payment for accrued 2018 compensation. During April 2019, the Company issued 11,789 shares of the Company’s common stock under the 2012 Plan to certain directors as payment for accrued 2019 compensation totaling $39,375. Distributions In January 2019, the Company declared a distribution of $0.01 per share on the Company’s common shares. The distribution was made on February 15, 2019 to shareholders of record as of January 25, 2019 and totaled $109,652. In April 2019, the Company declared a distribution of $0.01 per share on the Company’s common shares. The distribution was made on May 15, 2019 to shareholders of record as of April 26, 2019 and totaled $110,405. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2019 | |
INCOME TAXES | |
INCOME TAXES | NOTE 7. INCOME TAXES The Company is currently evaluating whether 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, 2018. The Company has until the extended due date of its December 31, 2018 tax return to formally make this election. Accordingly, should the Company elect REIT status, it 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. Should the Company not elect to be taxed as a REIT, the Company will not be subject to federal income tax for periods ended June 30, 2019 and 2018 due to significant operating losses and net operating loss carry-forwards. 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 June 30, 2019 and December 31, 2018. At December 31, 2017 the Company had federal and state net operating loss carry-forwards of approximately $5,350,000. 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 | 6 Months Ended |
Jun. 30, 2019 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 8. RELATED PARTY TRANSACTIONS Reven Capital, LLC, which is wholly-owned by Chad M. Carpenter, a shareholder of the Company and its Chief Executive Officer, currently subleases office space from the Company on a month to month basis for a monthly rental of $500. For each of the three months ended June 30, 2019 and 2018, the Company received income from Reven Capital, LLC of $1,500, respectively. For each of the six months ended June 30, 2019 and 2018, the Company received income from Reven Capital, LLC of $3,000, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 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 condensed consolidated financial statements and, therefore, no accrual has been recorded as of the periods ended June 30, 2019 and December 31, 2018. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, 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 2018 Annual Report on Form 10‑K filed with the SEC on March 21, 2019. The results of operations for the period ended June 30, 2019 are not necessarily indicative of the operating results for the full year. |
Principles of Consolidation | Principles of Consolidation The accompanying condensed unaudited condensed consolidated financial statements include the accounts of Reven Housing REIT, Inc, Reven Housing REIT OP, LP, a Delaware limited partnership which is its 100% owned operating partnership, and its wholly-owned subsidiaries, which have been formed primarily for financing purposes. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the condensed 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. |
Financial Instruments | Financial Instruments The carrying value of the Company’s financial instruments, as reported in the accompanying condensed consolidated balance sheets, approximates fair value due to their short-term nature. The Company’s short-term financial instruments consist of cash, restricted 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 condensed consolidated balance sheets, approximates fair value due to their market interest rate and because their security and payment terms are similar to other debt instruments currently being issued. |
Investments in Single-Family Residential Properties | Investments in Single-Family Residential Properties The Company accounts for its investments in single-family residential properties as asset acquisitions and records these acquisitions at their purchase price. The purchase price is allocated between land, building, improvements and existing leases based upon their relative fair values at the date of acquisition. The purchase price for purposes of this allocation is inclusive of acquisition costs which typically include legal fees, title fees, property inspection and valuation fees, as well as other closing costs. 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 either the six-month periods ended June 30, 2019 or 2018. |
Cash | 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. |
Restricted Cash | Restricted Cash Pursuant to the terms of the note payable referred to in Note 5, the Company is required to establish, maintain, and fund monthly specified reserve accounts. These reserve accounts include property tax reserves, insurance reserves, and capital expenditure reserves. |
Rents and Other Receivables | 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. |
Deferred Loan Fees | 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 loans as a component of interest expense on the condensed consolidated statements of operations. These deferred loan fees are offset against the notes payable in the accompanying condensed consolidated balance sheets. |
Security Deposits | Security Deposits Security deposits represent amounts deposited by tenants at the inception of the lease. As of June 30, 2019 and December 31, 2018, the Company had $912,500 and $825,233, respectively, in resident security deposits. Security deposits are refundable, net of any outstanding charges and fees, upon expiration of the underlying lease. |
Revenue Recognition | 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. |
Income Taxes | Income Taxes The Company is currently evaluating whether 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, 2018. The Company has until the extended due date of its December 31, 2018 tax return to formally make this election. Accordingly, should the Company elect REIT status, it 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. Should the Company not elect to be taxed as a REIT, the Company will not be subject to federal income tax for periods ended June 30, 2019 and 2018 due to significant operating losses and net operating loss carry-forwards. 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. |
Incentive Compensation Plan | 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. During January 2019, 75,369 shares were issued to officers, directors and employees in settlement of a portion of their accrued compensation for the year ended December 31, 2018. In April 2019, an additional 11,789 shares were issued to certain directors as payment for accrued 2019 compensation. A total of 628,940 shares have been issued under the 2012 plan as of June 30, 2019. |
Net Loss Per Share | 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. |
Segment Reporting | 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. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued ASU 2014‑09, Revenue from Contracts with Customers (Topic 606) , which outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The standard can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In July 2015, the FASB issued ASU 2015‑14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which delays the effective date of ASU 2014‑09 by one year. In March 2016, the FASB issued ASU 2016‑08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. ASU 2014‑09, ASU 2015‑14 and ASU 2016‑08 are herein collectively referred to as the "New Revenue Recognition Standards". The New Revenue Recognition Standards are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted but not before annual periods beginning after December 15, 2016. The Company has adopted the New Revenue Recognition Standards effective as of January 1, 2018, and has applied the modified retrospective method. The Company has evaluated its revenue streams and, as they are primarily related to leasing activities which are scoped out of the New Revenue Recognition Standards, has determined that the adoption of such standards does not have a material impact on the consolidated financial statements and thus there is no cumulative adjustment upon adoption. The Company evaluated its real estate sales contracts through December 31, 2018 and determined they qualified as sales to noncustomers. In February 2016, the FASB issued ASU 2016‑02, Leases , a new lease standard which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). Under ASU 2016‑02, lessor accounting is substantially similar to the past model but aligned with certain changes to the lessee model and ASU 2014‑09. The new standard requires lessors to account for leases using an approach that is substantially equivalent to past guidance for sales-type leases, direct financing leases and operating leases. The Company’s rental revenue is primarily generated from short-term operating leases. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to previous guidance. The new standard had an impact on the Company’s consolidated financial statements as the Company has an operating office lease arrangement for which it is the lessee. The new standard was adopted by the Company beginning on January 1, 2019 using the modified retrospective approach. In accordance with this standard the Company has recorded a right-of-use asset and a corresponding other liability of approximately $165,000 as of June 30, 2019 relating to its operating office lease arrangement for which it is the lessee. |
INVESTMENTS IN SINGLE-FAMILY _2
INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES | |
Schedule of Real Estate Properties | Investments in Single-Family Number Buildings and Residential of Homes Land Improvements Properties, Gross Total at December 31, 2018 965 $ 13,642,461 $ 64,781,322 $ 78,423,783 Purchases and improvements during 2019: Acquisitions 28 834,000 4,357,608 5,191,608 Improvements — — 1,077,848 1,077,848 Total at June 30, 2019 993 $ 14,476,461 $ 70,216,778 $ 84,693,239 Accumulated depreciation (7,955,740) Investments in single-family rental properties, net at June 30, 2019 $ 76,737,499 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |
Schedule of Accounts Payable and Accrued Liabilities | 2019 2018 Accounts payable $ 213,328 $ 76,523 Property insurance payable 753,793 — Real estate taxes payable 879,364 781,182 Accrued compensation, board fees and other 455,550 505,365 Interest payable 244,270 209,643 Operating lease obligation 165,071 — $ 2,711,376 $ 1,572,713 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
NOTES PAYABLE | |
Schedule of Debt [Table Text Block] | Interest Rate 2019 2018 (Fixed) Maturity Date Note Reven Housing Funding 1, LLC $ 51,362,000 $ 51,362,000 4.74 % October, 2025 Reven Housing Funding 2, LLC 10,523,000 — 4.72 % March, 2026 61,885,000 51,362,000 Less deferred loan fees, net (1,435,822) (1,229,853) Notes payable, net $ 60,449,178 $ 50,132,147 |
ORGANIZATION AND OPERATION (Det
ORGANIZATION AND OPERATION (Details) | 6 Months Ended |
Jun. 30, 2019home | |
ORGANIZATION AND OPERATION | |
Single-family homes owned | 993 |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019USD ($)shares | Apr. 30, 2019shares | Jan. 31, 2019shares | Jun. 30, 2019USD ($)segment | Dec. 31, 2012shares | Dec. 31, 2018USD ($) | |
Accounting Policies [Line Items] | ||||||
Reportable segments | segment | 1 | |||||
Security Deposit | $ 912,500 | $ 912,500 | $ 825,233 | |||
Operating Lease, Right-of-Use Asset | 165,000 | 165,000 | ||||
Operating Lease, Liability | $ 165,071 | $ 165,071 | $ 0 | |||
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 | |||||
Reven Housing REIT Inc [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | 100.00% | ||||
Incentive Compensation Plan 2012 [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 1,650,000 | |||||
Percentage of Voting Rights | 10.00% | |||||
Minimum Percentage of Market Value | 110.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | |||||
Shares issued | shares | 628,940 | 11,789 | 75,369 |
INVESTMENTS IN SINGLE-FAMILY _3
INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES (Details) | 6 Months Ended | |
Jun. 30, 2019USD ($)home | Dec. 31, 2018home | |
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | home | 993 | 965 |
Accumulated depreciation | $ (7,955,740) | |
Investments in single-family rental properties, net at March 31, 2019 | $ 76,737,499 | |
Improvements | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | home | 0 | |
Acquisitions | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | home | 28 | |
Land | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment at Beginning | $ 13,642,461 | |
Property Plant and Equipment, Acquisitions | 834,000 | |
Property Plant And Equipment, Improvements | 0 | |
Property Plant and Equipment at Ending | 14,476,461 | |
Buildings and Improvements | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment at Beginning | 64,781,322 | |
Property Plant and Equipment, Acquisitions | 4,357,608 | |
Property Plant And Equipment, Improvements | 1,077,848 | |
Property Plant and Equipment at Ending | 70,216,778 | |
Investments In Single-Family Residential Properties [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property Plant and Equipment at Beginning | 78,423,783 | |
Property Plant and Equipment, Acquisitions | 5,191,608 | |
Property Plant And Equipment, Improvements | 1,077,848 | |
Property Plant and Equipment at Ending | $ 84,693,239 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ||
Accounts payable | $ 213,328 | $ 76,523 |
Property insurance payable | 753,793 | |
Real estate taxes payable | 879,364 | 781,182 |
Accrued compensation, board fees and other | 455,550 | 505,365 |
Interest payable | 244,270 | 209,643 |
Operating lease obligation | 165,071 | 0 |
Accounts payable and accrued liabilities | $ 2,711,376 | $ 1,572,713 |
NOTES PAYABLE - SUMMARY OF COMP
NOTES PAYABLE - SUMMARY OF COMPANY'S NOTES PAYABLE (Details) - USD ($) | Jun. 30, 2019 | Feb. 11, 2019 | Dec. 31, 2018 |
Note | |||
Notes payable, net | $ 60,449,178 | $ 50,132,147 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.72% | ||
Notes Payable to Banks [Member] | |||
Note | |||
Long-term Debt, Gross | 61,885,000 | 51,362,000 | |
Less deferred loan fees, net | (1,435,822) | (1,229,853) | |
Notes payable, net | 60,449,178 | 50,132,147 | |
Reven Housing Funding 1 LLC [Member] | Notes Payable to Banks [Member] | |||
Note | |||
Long-term Debt, Gross | $ 51,362,000 | 51,362,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.74% | ||
Reven Housing Funding 2 LLC [Member] | Notes Payable to Banks [Member] | |||
Note | |||
Long-term Debt, Gross | $ 10,523,000 | $ 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.72% |
NOTES PAYABLE (Additional Infor
NOTES PAYABLE (Additional Information) (Detail) | Feb. 11, 2019USD ($)home | Feb. 11, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Notes Payable [Line Items] | |||||||
Interest Expense, Debt | $ 797,641 | $ 435,171 | $ 1,525,765 | $ 835,763 | |||
Amortization of Financing Costs | 56,688 | $ 50,994 | 105,950 | 101,988 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.72% | 4.72% | |||||
Debt Instrument, Face Amount | $ 10,523,000 | $ 10,523,000 | |||||
Debt Instrument, Term | 7 years | ||||||
Number of single-family homes | home | 143 | ||||||
Homes Purchase | home | 12 | ||||||
Proceeds From Notes Payable | 2,900,000 | 10,523,000 | $ 2,736,630 | ||||
Payments to Acquire Real Estate | $ 7,400,000 | ||||||
Notes Payable to Banks [Member] | |||||||
Notes Payable [Line Items] | |||||||
Debt Issuance Costs, Net | $ 1,435,822 | $ 1,435,822 | $ 1,229,853 |
STOCKHOLDERS' EQUITY AND STOC_2
STOCKHOLDERS' EQUITY AND STOCK COMPENSATION (Details) - USD ($) | Mar. 15, 2019 | Feb. 15, 2019 | Jun. 30, 2019 | Apr. 30, 2019 | Apr. 15, 2019 | Jan. 31, 2019 | Oct. 16, 2014 | Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2016 |
STOCKHOLDERS' EQUITY AND STOCK COMPENSATION [Line Items] | ||||||||||
Stock Issued During Period, Shares, Issued for Services | 75,369 | |||||||||
Shares Issued, Price Per Share | $ 0.01 | |||||||||
Dividends, Common Stock | $ 110,405 | $ 109,652 | $ 110,405 | $ 220,057 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.01 | $ 0.01 | ||||||||
Director [Member] | ||||||||||
STOCKHOLDERS' EQUITY AND STOCK COMPENSATION [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 11,789 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award Values Issued in Period | $ 39,375 | |||||||||
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 | 318,750 | 318,750 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 628,940 | 11,789 | 75,369 |
INCOME TAXES (Details)
INCOME TAXES (Details) | Dec. 31, 2017USD ($) |
INCOME TAXES | |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 5,350,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Related Party Transaction [Line Items] | ||||
Operating Leases, Rent Expense | $ 500 | |||
Chief Executive Officer [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating Leases, Rent Expense, Sublease Rentals | $ 1,500 | $ 1,500 | $ 3,000 | $ 3,000 |