Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 39

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 39
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 risk than an investment in the preferred or common stock of a real estate company with a
substantial operating history. If we are unable to operate our business successfully, we would not be able to generate sufficient cash
flow to make or sustain distributions to our stockholders, and you could lose all or a portion of the value of your ownership in Series B
Redeemable Preferred Stock or Class A common stock. Our ability to successfully operate our business and implement our operating
policies and investment strategy depends on many factors, including:

| · | our ability to effectively manage renovation, maintenance, marketing, and other operating costs for our properties; |

| · | economic conditions in our markets, including changes in employment and household earnings and expenses, as well as the condition of the financial and real estate markets and the economy, in general; |

| · | our ability to maintain high occupancy rates and target rent levels; |

| · | the availability of, and our ability to identify, attractive acquisition opportunities consistent with our investment strategy; |

| · | our ability to compete with other investors entering the residential rental industry; |

| · | costs that are beyond our control, including title litigation, litigation with residents or tenant organizations, legal compliance, property taxes, HOA fees, and insurance; |

| · | judicial and regulatory developments affecting landlord-tenant relations that may affect or delay our ability to dispossess or evict occupants or increase rental rates; |

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| · | reversal of population, employment, or homeownership trends in our markets; and |

| · | interest rate levels and volatility, which may affect the accessibility of short-term and long-term financing on desirable terms. |

In addition, we face significant
competition in acquiring attractive properties on advantageous terms, and the value of the properties that we acquire may decline substantially
after we purchase them.

A significant portion of our costs and expenses are fixed and we may not be able to adapt our cost structure to offset declines in our revenue.

Many of the expenses associated
with our business, such as property taxes, HOA fees, insurance, utilities, acquisition, renovation and maintenance costs, and other general
corporate expenses are relatively inflexible and will not necessarily decrease with a reduction in revenue from our business. Some components
of our fixed assets depreciate more rapidly and require ongoing capital expenditures. Our expenses and ongoing capital expenditures are
also affected by inflationary increases, and certain of our cost increases may exceed the rate of inflation in any given