How rent becomes income

The monthly waterfall

Say a home collects $2,000 in rent this month. Before anything is paid out, it covers the bills: $650 for taxes, insurance and repairs, $160 for the property manager (about 8%), and $100 into a reserve fund (5%) for bigger repairs and empty months.

Then comes the asset management fee, 1.0% / yr of appraised value, monthly. On a $300,000 home that's $250 this month. What's left, $840, is split across every share.

Your slice

If the home has 3,000 shares, $840 works out to 28 cents per share. Own 10 shares and you receive $2.80 for the month. That's your net yield at work: income after costs, as a percent of value.

You're paid if you own shares on the record date, usually the last day of the month. A month with a vacancy or a big repair can pay less, or nothing.

Projected isn't promised

Yields shown on listings are projections based on current leases and costs. They can change. Cavisa labels every return figure as projected or historical.