Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 173

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 173
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 the property; the potential for rent increases; the potential for economic growth and the tax and regulatory environment of the
community in which the property is located; the occupancy and demand by residents for properties of a similar type in the vicinity (the
overall market and submarket); the prospects for liquidity through sale, financing or refinancing of the property; the benefits of integration
into existing operations; purchase prices and yields of available existing stabilized properties, if any; competition from existing properties
and properties under development and the potential for the construction of new properties in the area; and potential for opportunistic
selling based on demand and price of high quality assets, including condominium conversions.

While our pace of acquisition
is dependent on a variety of factors, including availability of capital, we believe the infrastructure provided by our manager and our
network provides us with the ability to achieve an average acquisition pace of 500 to 1,000 homes per month. Newly acquired homes are
generally rent-ready within 75 days from acquisition, although the timing associated with this process will vary based on a number of
factors, including location, acquisition channel, construction quality and design of the property, whether the property was vacant when
acquired, and the condition of the property at acquisition. Such factors can also result in significant variance in the costs associated
with the preparation of newly acquired homes for rental. The cost associated with the preparation of newly acquired homes, in the company’s
experience, has historically ranged from $0 to $20,000 per unit, with an average cost of $500 to $1,000 per unit, although such costs
are subject to a variety of factors out of the company’s control and which are subject to change, including the cost of labor and
cost of materials. In addition, we believe our rigorous underwriting process for the evaluation of potential investments will enable us
to utilize our value-add renovation strategy to cost-effectively maximize the income-producing capacity and potential for capital appreciation
of our investments.

Property Management and Leasing

The day-to-day aspects of
property management and leasing are generally conducted by our joint-venture partners or third-party managers with extensive local experience,
with oversight to be performed by our Manager’s asset management team. We believe this approach maximizes efficiencies and allows
us to leverage local expertise. With respect to potential tenants, our property managers perform a thorough underwriting process tailored
to the specific property, in accordance with local market practice and local, state and federal regulations. The typical application and