Delta Home Investments is a real estate investment company that purchases, renovates, and rents out single-family homes across the United States. As with any investment, it’s important for investors to thoroughly research Delta Home Investments before making a decision. This article provides an in-depth and unbiased look at Delta Home Investments, including an overview of their business model, fees, returns, pros and cons based on online Delta home investments reviews, and more. With over $500 million in assets under management, Delta Home Investments is one of the larger players in the turnkey rental property space. Read on to learn everything you need to know about this real estate investing company.
Delta Home Investments purchases renovates and manages rental properties on investors’ behalf
The core business model of Delta Home Investments is to purchase, renovate, rent out, and manage single-family rental homes across the United States on behalf of investors. Investors can choose rental properties meeting their investment criteria and finance requirements, while Delta Home Investments handles all of the legwork from acquisition to property management. This turnkey approach appeals to real estate investors who want exposure to rental income without the hassles of being an active landlord. Delta Home Investments currently owns over 2,500 rental properties across 14 states. They focus on reasonably priced homes in working-class neighborhoods that meet their occupancy rate and cash flow projections. Each property is updated with smart home technology and renovated to Delta’s standards before being rented out.
Delta Home Investments charges above-average fees compared to competitors
One of the most common complaints in Delta home investments reviews is their fee structure, which is higher than average compared to other turnkey rental companies. There is a 5% acquisition fee on the purchase price of each property, 2.9% for property management, and a 1% disposition fee when the property is sold. Delta also charges an annual $275 technology fee for smart home features and a $395 annual account fee. All said, investors pay 10-12% of rental income in fees. This is 3-4% higher than fees from top competitors like Roofstock and Turnkey. The flip side is that Delta completely handles all aspects of purchasing, renovating, leasing, maintenance, etc. So the higher fees could be worth it for passive investors who want zero landlord responsibilities.
Average returns are around 7-10% based on Delta Home Investments reviews
According to Delta home investments reviews and reported returns from investors, average cash-on-cash returns range from 7-10% per year. This is after Delta’s fees are accounted for. Returns are heavily dependent on the purchase price, renovation costs, and rental rates for each specific market. Delta focuses on affordable homes rented to tenants in the $40k-$60k income range, so rents typically range from $1,200 to $1,800 per month. Atlanta, Memphis, Birmingham, and other Southeast markets tend to provide the best returns based on purchase prices and rental rates. Returns in expensive markets like Los Angeles and Phoenix are lower. Conservative investors may want to project returns toward the lower end of the range. As with any real estate investment, returns will vary based on property selection.
The renovations and property management receive positive reviews
In general, Delta home investments reviews praise their renovation process and property management services once the properties are rented out. Delta has an in-house renovation team that oversees the updates and repairs for each newly acquired property. They stick to a formula that has worked well, with new floors, cabinets, appliances and bathrooms plus smart home tech. This standardized reno process enables them to get properties rented out faster. Their property management arm also gets good reviews for prompt response to maintenance issues, timely rent collection, and keeping occupancy rates high. Many investors said they contacted the tenants directly and were pleased with the condition and upkeep of the properties.
In summary, Delta Home Investments provides a hands-off way to invest in single-family rental homes across the U.S. Their fees are higher than average but they completely manage every aspect of the investment. Returns appear to be 7-10% on average. The renovations and property management receive positive Delta home investments reviews. As with any major investment, be sure to run the numbers yourself and don’t rely solely on reported returns or Delta home investments reviews from others.