Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 9

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 9
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 |     | 2023 |         |
|:--------------------|:----|:-----|--------:|
| Real Estate Tax     |     | $    | 210,007 |
| Replacement Reserve |     |      |     428 |
|                     |     | $    | 210,435 |

Tenant Receivables

Tenant accounts receivable deemed uncollectible
are written off to bad debt expense upon a court order for eviction of the tenant. Any subsequent collections of these receivables are
recorded as income at the time of collection.

Investments in Real Estate

Rental property is recorded at relative fair value
on the date of purchase. Improvements are capitalized subject to the capitalization policy, while expenditures for maintenance and repairs
are expensed as incurred. Upon disposal of depreciable property, the appropriate property accounts are reduced by the related costs and
accumulated depreciation. The resulting gains and losses are reflected in the consolidated statement of operations. Construction in Progress
contains unfinished capital improvement projects that have not yet been placed in service. These projects are placed in service once completed
and depreciation begins on the in-service date.

The rental property is depreciated over the estimated
service lives under the straight-line method as follows:

| · | Buildings and land improvements   | 15 – 40 years |
| · | Furniture, fixtures and equipment | 7 years       |

Impairment of Long Lived Assets

The Company reviews its investment in real estate
for impairment whenever events or changes in circumstances indicate that the carrying value of such property may not be recoverable. Recoverability
is measured by a comparison of the carrying amount of the real estate to the future net undiscounted cash flow expected to be generated
by the rental property and any estimated proceeds from the eventual disposition of the real estate. If the real estate is considered to
be impaired, the impairment to be recognized is measured at the amount by which the carrying amount of real estate exceeds the fair value
of such property. There were no impairment losses recognized for the for the year ended December 31, 2023.

Revenue Recognition

Rents are recognized for residential units as
they are earned. Advance receipts of rental income are deferred until earned. All leases between the subsidiaries of the Company and tenants
of the residential unit are operating leases of one year or less. The Company also recognizes other income for certain amenities and expense
reimbursement. Rental revenue is recognized in accordance with Accounting Standards Codification (ASC) Topic 842