PART II 2 ea0288058-1k_arrived3.htm ANNUAL REPORT

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 1-K

 

ANNUAL REPORT PURSUANT TO REGULATION A

 

For the fiscal year ended:

December 31, 2025

 

ARRIVED HOMES 3, LLC
(Exact name of issuer as specified in its charter)

 

Delaware   92-1716073
State of other jurisdiction of
incorporation or Organization		   (I.R.S. Employer
Identification No.)

 

1700 Westlake Ave North, Suite 200

Seattle, WA 98109

(Full mailing address of principal executive offices)

 

(814)-277-4833
(Issuer’s telephone number, including area code)

 

www.arrived.com
(Issuer’s website)

 

Arrived Series Haven; Arrived Series Chilhowee; Arrived Series Sheezy; Arrived Series Cristalino; Arrived Series Hermanos; Arrived Series Bowling; Arrived Series Emelina; Arrived Series Caden; Arrived Series Camellia; Arrived Series Palmore; Arrived Series Brookwood; Arrived Series Lithonia; Arrived Series Haverhill; Arrived Series Woodwind; Arrived Series Aspen; Arrived Series Thomas; Arrived Series Bennett; Arrived Series Benny; Arrived Series Montgomery; Arrived Series Summerglen; Arrived Series Portsmouth; Arrived Series Westhaven; Arrived Series Cordero; Arrived Series Wheeler; Arrived Series Watson; Arrived Series Holmes; Arrived Series Hamblen; Arrived Series Ethan; Arrived Series Helmerich; Arrived Series Claremore; Arrived Series Bryant; Arrived Series Hancock; Arrived Series Wynde; Arrived Series Haikey; Arrived Series Arkoma; Arrived Series Gordon; Arrived Series Lucas; Arrived Series Woodland; Arrived Series Macomber; Arrived Series Meridian; Arrived Series Pongo; Arrived Series Perdita; Arrived Series Bean; Arrived Series Ellie; Arrived Series Antares; Arrived Series Bluebell; Arrived Series Aramis; Arrived Series Barclay; Arrived Series Athos; Arrived Series Bradford; Arrived Series Caterpillar; Arrived Series Liberty; Arrived Series Mallard; Arrived Series Riverwood; Arrived Series Roanoke; Arrived Series Zane; Arrived Series Sherwood; Arrived Series Tansel; Arrived Series Tytus; Arrived Series Williamson; Arrived Series Arya; Arrived Series Sansa; Arrived Series Marcy; Arrived Series Hedgecrest; Arrived Series Haybridge; Arrived Series Layla; Arrived Series Lola; Arrived Series Ratliff; Arrived Series Collinison; Arrived Series Hardman; Arrived Series Pebblestone; Arrived Series Keystone; Arrived Series Northbrook; Arrived Series Rachel; Arrived Series Frances; Arrived Series Ross; Arrived Series Northridge; Arrived Series Wyndhurst; Arrived Series Vanzant; Arrived Series Glenncrest; Arrived Series Oakland; Arrived Series Laurel; Arrived Series Phoebe; Arrived Series Johnson; Arrived Series Sedgefield; Arrived Series Robinson; Arrived Series Seneca; Arrived Series Adams; Arrived Series Bayne; Arrived Series Boxwood; Arrived Series Langley; Arrived Series Misty; Arrived Series Metallo; Arrived Series Presidio; Arrived Series Spangler; Arrived Series Tomlinson

(Title of each class of securities issued pursuant to Regulation A)

 

 

 

 

 

TABLE OF CONTENTS

 

ITEM 1. DESCRIPTION OF BUSINESS 1
     
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION 13
     
ITEM 3. DIRECTORS AND OFFICERS 32
     
ITEM 4. SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS 35
     
ITEM 5. INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS 35
     
ITEM 6. OTHER INFORMATION 35
     
ITEM 7. FINANCIAL STATEMENTS F-1
     
ITEM 8. EXHIBITS 36

 

i

 

 

CAUTIONARY STATEMENT REGARDING Forward-Looking StatementS

 

The information contained in this Annual Report on Form 1-K (this “Form 1-K”) includes some statements that are not historical and that are considered “forward-looking statements.” Such forward-looking statements include, but are not limited to, statements regarding our development plans for our business; our strategies and business outlook; anticipated development of Arrived Homes 3, LLC (the “Company”), Arrived Fund Manager, LLC (the “manager”), each series of our Company and the Arrived platform (defined below); and various other matters (including contingent liabilities and obligations and changes in accounting policies, standards and interpretations). These forward-looking statements express the manager’s expectations, hopes, beliefs, and intentions regarding the future. In addition, without limiting the foregoing, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.  The words “anticipates,” “believes,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “possible,” “potential,” “predicts,” “projects,” “seeks,” “should,” “will,” “would” and similar expressions and variations, or comparable terminology, or the negatives of any of the foregoing, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

 

The forward-looking statements contained in this Form 1-K are based on current expectations and beliefs concerning future developments that are difficult to predict. Neither our Company nor the manager can guarantee future performance, or that future developments affecting our Company, the manager or the Arrived platform will be as currently anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.

 

All forward-looking statements attributable to us are expressly qualified in their entirety by these risks and uncertainties. These risks and uncertainties, along with others, are detailed under the headings “Summary – Summary Risk Factors” and “Risk Factors” in our latest offering circular (the “Offering Circular”) filed by the Company with the Securities and Exchange Commission (the “Commission”), which may be accessed here and may be amended, and in our subsequent reports and offering statements filed from time to time with the Commission. Should one or more of these risks or uncertainties materialize, or should any of the parties’ assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You should not place undue reliance on any forward-looking statements and should not make an investment decision based solely on these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

 

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MARKET AND OTHER INDUSTRY DATA

 

This Form 1-K includes market and other industry data and estimates that are based on our management’s knowledge and experience in the markets in which we operate. The sources of such data generally state that the information they provide has been obtained from sources they believe to be reliable, but we have not investigated or verified the accuracy and completeness of such information. Our own estimates are based on information obtained from our and our affiliates’ experience in the markets in which we operate and from other contacts in these markets. We are responsible for all of the disclosure in this Form 1-K, and we believe our estimates to be accurate as of the date of this Form 1-K or such other date stated herein. However, this information may prove to be inaccurate because of the method by which we obtained some of the data for the estimates or because this information cannot always be verified with complete certainty due to the limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties. As a result, you should be aware that market and other industry data included in this Form 1-K, and estimates and beliefs based on that data, may not be reliable.

 

iii

 

 

Item 1. Description of Business

 

Company Overview – Our Mission

 

Arrived Homes 3, LLC, a Delaware series limited liability company, was formed in January 2023 to permit public investment in specific single-family rental homes. We believe people should have the freedom to move to pursue new opportunities in their lives while still having access to the wealth creation that long-term home ownership and real estate investment can provide. To support this idea, we are building what we believe to be a new model for home ownership and real estate investment that doesn’t lock people into a single home or city. We believe in passive income, conservative debt, freedom to move, diversification, and aligned incentives.

 

Arrived is a marketplace for investing in homes. We buy single family homes, lease them, divide them into multiple interests, and offer them as investments on a per interest basis through our web-based platform. Investors can manage their risk by spreading their investments across a portfolio of homes, they can invest in real estate without needing to apply for mortgages or take on personal debt, and they can move to new homes or cities and continue holding their Arrived investments without having to worry about selling homes they’re invested in.

 

Arrived does all of the work of sourcing, analyzing, maintaining, and managing all of the homes that we acquire. We analyze every home investment across several financial, market, and demographic characteristics to support our acquisition decision-making. Every investment we make is an investment in the communities in which Arrived operates, alongside other like-minded individuals. As our community network grows, so does our access to investment and housing opportunities.

 

Arrived rents the homes we acquire to tenants who can also invest through the same process as any other member of the Arrived platform, becoming part owners of the homes they’re living in at that time. By investing together, we align incentives towards creating value for everyone.

 

Our Series LLC Structure

 

Each single family rental home that we acquire will be owned by a separate series of our Company that we will establish to acquire that home.  Each series may hold the specific property that it acquires in a wholly-owned subsidiary, which would be a limited liability company organized under the laws of the state in which the series property is located. 

 

As a Delaware series limited liability company, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a particular series are segregated and enforceable only against the assets of such series, as provided under Delaware law.  We intend for each series to elect and qualify to be taxed as a separate real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ending after the completion of the initial public offering of interests of such series.

 

Our Company’s core business is the identification, acquisition, marketing and management of individual single family rental homes for the benefit of our investors. Each series is intended to own a single property.

 

Investment Objectives

 

Our investment objectives are: 

 

  ● Consistent cash flow;

 

  ● Long term capital appreciation with moderate leverage;

 

  ● Favorable tax treatment of REIT income and long term capital gains; and

 

  ● Capital preservation.

 

We cannot assure you that we will attain these objectives or that the value of our assets will not decrease. 

 

1

 

Our Investment Criteria

 

Our home acquisition investments are evaluated against the following primary characteristics:

 

  ● Capitalization rates greater than 5%. For this purpose, the capitalization rate reflects a series property’s annual rental income minus property management fees, local real estate taxes, property insurance, maintenance expenses, and marketing incentives, divided by the purchase price of the property;

 

  ● Homes with a minimum of three (3) bedroom and two (2) bathrooms;

 

  ● Homes less than 30 years old;

 

  ● Homes with a price range of $200,000 - $400,000 and a repair/improvement budget requirement of less than 20% of the home purchase price; and

 

  ● Neighborhoods with median incomes that exceed the metropolitan statistical area, or MSA, median.

 

Our Investment Process

 

Our investment process leverages our network of renter demand, experienced team members, and data analysis to make our investment decisions:

 

  ● Sourcing: Arrived will use an in-house acquisition team (using industry leading analysis and screening tools) in collaboration with local real estate professionals to find and source investment opportunities. The opportunities may include individual homes listed on the MLS, bulk rental home portfolios, BFR (built-for-rent) communities, and off-market deals sourced by our staff and from leads generated from our member network.

 

  ● Due Diligence: Arrived evaluates potential investments against our stated investment criteria. Once a geographic market is selected, our due diligence will focus on the sub-market and the property itself. Value analysis will include projected rental rates and home values, relying on a combination of first-party data, automated valuation models, or AVMs, and third party independent appraisals. Property level analysis will look at standard risk factors including condition of title, structural defects in the home, environmental issues, and other hazards such as floods and earthquakes.

 

  ● Investment Committee: Once our acquisition team recommends a home purchase, the investment committee will convene to review due diligence materials and issue a go/no-go decision.

 

  ● Home Purchase: A home will be purchased either by the manager or an affiliate of the manager and then resold to a particular series or purchased directly by a series from a third-party seller, in accordance with the acquisition mechanics set forth below. Following acquisition of a property by a series, the property will be renovated, to the extent necessary, and then leased to a quality tenant on a 12-24 month lease. If a series property is renovated prior to the closing of the relevant series offering, the funds required for renovations will be forwarded to the series by the manager and repaid out of offering proceeds.

 

  ● Ongoing Management: Arrived will partner with one or more third party independent property management firms in each of our markets. Arrived will place an initial tenant in a home from our member network and will assist with future tenant placements. The property management firm will maintain books and records, inspect each home and ensure that it is properly maintained, handle maintenance requests, and be responsible for landlord/tenant compliance. We intend that our preferred property management firms will utilize modern tech-enabled property management platforms with digital payment and communication features.

 

2

 

Our Manager

 

Our Company is managed by Arrived Fund Manager, LLC, a Delaware limited liability company and managing member of our Company. Pursuant to the terms of our operating agreement, the manager will provide certain management and advisory services to us and to each of our series and their subsidiaries, if any, as well as a management team and appropriate support personnel.  The manager is a wholly owned subsidiary of our sponsor, Arrived Holdings, Inc., a Delaware corporation, which is an asset management company that operates a web-based investment platform, the Arrived platform, used by our Company for the offer and sale of interests in the series of our Company. 

 

The nature of business to be conducted or promoted by us must at all times be to engage in any lawful act or activity for which LLCs may be organized under the Delaware Limited Liability Company Act.

  

Investment Strategy – Our Market Opportunity

 

Our investment strategy is to acquire, invest in, manage, operate, selectively leverage and sell single family homes located in vibrant, growing cities across America. We believe that these markets offer investors a blend of attractive capitalization rates and a strong prospect for long term property value appreciation.

 

Market Selection

 

We intend to focus our business efforts on the top 100 metropolitan statistical areas (“MSA”) with populations greater than 500,000, which exhibit the following characteristics:

 

  ● Sufficient inventory to make it feasible to achieve scale in the local market (100 – 500 homes);

 

  ● Job and income growth forecasts of 3% or greater;

 

  ● Affordability with gross rent multiplier below 12. For this purpose, a gross rent multiplier (“GRM”) is the ratio of the price of the single family home purchased to its annual rental income before accounting for expenses such as property taxes, insurance, and utilities; GRM is the number of years the property would take to pay for itself in gross received rent;

 

  ● Large university and skilled workforce;

 

  ● Popular with millennials; and

 

  ● Favorable competitive landscape with respect to other institutional single family residence buyers.

  

We focus on acquiring properties we believe (1) are likely to generate stable cash flows in the long term and (2) have significant possibilities for long-term capital appreciation, such as those located in neighborhoods with what we see as high growth potential and those available from sellers who are distressed or face time-sensitive deadlines. 

 

We may enter into one or more joint ventures, tenant-in-common investments or other co-ownership arrangements for the acquisition, development or improvement of properties with third parties or affiliates of the manager, including present and future real estate investment offerings sponsored by affiliates of the manager. 

 

3

 

Investments in Real Property

 

Our investment in real estate generally will take the form of holding fee title or a long-term leasehold estate. We will acquire such interests either directly or indirectly through limited liability companies or through investments in joint ventures, partnerships, co-tenancies or other co-ownership arrangements with third parties, including developers of the properties, or with affiliates of the manager. In addition, we may purchase properties and lease them back to the sellers of such properties. Although we will use our best efforts to structure any such sale-leaseback transaction such that the lease will be characterized as a “true lease” so that we will be treated as the owner of the property for federal income tax purposes, the Internal Revenue Service could challenge such characterization. If any such sale-leaseback transaction is recharacterized as a financing transaction for U.S. federal income tax purposes, deductions for depreciation and cost recovery relating to such property would be disallowed. 

 

Our obligation to purchase any property generally will be conditioned upon the delivery and verification of certain documents from the seller or developer, including, where appropriate:

 

  ● plans and specifications;

 

  ● evidence of marketable title subject to such liens and encumbrances as are acceptable to the manager;

 

  ● auditable financial statements covering recent operations of properties having operating histories; and

 

  ● title and liability insurance policies.

 

We may seek to enter into arrangements with the seller or developer of a property whereby the seller or developer agrees that, if during a stated period the property does not generate a specified cash flow, the seller or developer will pay in cash to us a sum necessary to reach the specified cash flow level, subject in some cases to negotiated dollar limitations. In determining whether to purchase a particular property, we may, in accordance with customary practices, obtain an option on such property. The amount paid for an option, if any, is normally surrendered if the property is not purchased and is normally credited against the purchase price if the property is purchased. The terms and conditions of any apartment lease that we enter into with our residents may vary substantially; however, we expect that a majority of our leases will be standardized leases customarily used between landlords and residents for residential properties. Such standardized leases generally have terms of one year or less. All prospective residents for our residential properties will be required to submit a credit application.

 

In purchasing, leasing and developing properties, we will be subject to risks generally incident to the ownership of real estate. For example, certain losses are not insurable and may only be insured subject to limitations. Insurance coverage may also vary based on the specific property, geography and market covered. Our insurance coverage generally varies based on replacement cost (estimated with a cost to square foot analysis based on the market and finish level). Although we also maintain an “all-perils policy” (with some standard exclusions) for each series property which seeks to provide insurance coverage for the properties at their full value, there is no guarantee that such coverage will actually be sufficient or cover all costs and damages in the case of any loss.

 

Leverage Policy

 

We may employ leverage to enhance total returns to our investors through a combination of senior financing on our real estate acquisitions, secured facilities, and capital markets financing transactions. We will seek to secure conservatively structured leverage that is long-term, non-recourse, non-mark-to-market financing to the extent obtainable on a cost effective basis. To the extent leverage is employed, it may come either in the form of government-sponsored programs or other long-term, non-recourse, non-mark-to-market financing. The manager may from time to time modify our leverage policy in its discretion. However, it is our policy to not borrow more than 69% of the greater of cost (before deducting depreciation or other non-cash reserves) or fair market value of our assets. We cannot exceed the leverage limit of our leverage policy unless any excess in borrowing over such level is approved by the manager. To the extent a series does not employ leverage to fund the initial purchase of an asset, the series may subsequently determine to obtain financing for the asset in accordance with this leverage policy. In such a case, unless the financing (or any other refinancing) proceeds are needed, in the manager’s discretion, to fund the operations of an asset or reserves, the manager may determine to distribute all or a portion of such proceeds to investors.

 

4

 

Acquisition Mechanics

 

Typically, each series will acquire its series property prior to the commencement or closing of that series’ offering. Each series property will be fully described in the offering circular as it may be amended to include new series offerings. In each such offering circular, information relating to the series property being offered, such as the description and specifications of the series property, the purchase price of the series property and the relevant terms of purchase, will be disclosed.

 

It is not anticipated that a series will own any assets other than its series property, plus cash reserves for maintenance, insurance and other expenses pertaining to the series property and amounts earned by the series from the monetization of the series property, if any.  Each series may hold the specific property that it acquires in a wholly-owned subsidiary, which would be a limited liability company organized under laws of the state in which the series property is located. 

 

A series may acquire its property either from an unaffiliated third party or from an affiliate of the manager. For a detailed description of our acquisition methods, please refer to our latest offering circular, filed with the Securities and Exchange Commission on January 30, 2025, which may be accessed here.

 

Operating Policies

 

Credit Risk Management. We may be exposed to various levels of credit and special hazard risk depending on the nature of our assets. The manager and its executive officers will review and monitor credit risk and other risks of loss associated with each investment. The manager will monitor the overall credit risk and levels of provision for loss.

 

Interest Rate Risk Management. We will follow an interest rate risk management policy intended to mitigate the negative effects of major interest rate changes. We intend to minimize our interest rate risk from borrowings by attempting to “match-fund,” which means the manager will seek to structure the key terms of our borrowings to generally correspond with the expected holding period of our assets.

 

Equity Capital Policies. Under the operating agreement, we have the authority to issue an unlimited number of additional interests or other securities. After your purchase in any series offering, the manager may elect to: (i) sell additional securities in future private offerings, or (ii) issue additional securities in public offerings. To the extent we issue additional equity interests after your purchase in an offering, your percentage ownership interest in us will be diluted. In addition, depending upon the terms and pricing of any additional offerings and the value of our investments, you may also experience dilution in the book value and fair value of your interests.

 

Additional Borrowings. We expect each series may seek, as applicable, to finance or refinance any outstanding indebtedness with an additional mortgage or other debt financing, including with either an affiliate or a third party. We expect that any third-party mortgage and/or other debt instruments that a series, or the Company on behalf of a series, enters into in connection with a financing or refinancing of a property will be secured by a security interest in the title of such property and any other assets of the series.

   

Disposition Policies

 

We intend to hold and manage the properties we acquire for a period of five to seven years. As each of our properties reaches what we believe to be its optimum value, we will consider disposing of the property. The determination of when a particular property should be sold or otherwise disposed of will be made after consideration of relevant factors, including prevailing and projected economic conditions, whether the value of the property is anticipated to appreciate or decline substantially, and how any existing leases on a property may impact the potential sales price. The manager may determine that it is in the best interests of shareholders to sell a property earlier than five years or to hold a property for more than seven years. Additionally, any sale of a property will be subject to lessee rights and we would attempt to time property sales with lessee rights in mind, either by timing sales with anticipated lease terminations or by assigning an existing lease to the property buyer where allowed under applicable laws.

 

5

 

When we determine to sell a particular property, we will seek to achieve a selling price that maximizes the capital appreciation for investors based on then-current market conditions. We cannot assure you that this objective will be realized.

 

Following the sale of a property, the manager will distribute the proceeds of such sale, net of the property disposition fee as described below, to the interest holders of the applicable series (after payment of any accrued liabilities or debt on the property or of the series at that time).

 

Property Disposition Fee

 

Upon the disposition and sale of a series property, each series will be charged a market rate property disposition fee that will cover property sale expenses such as brokerage commissions, and title, escrow and closing costs. It is expected that this disposition fee charged to a series will range from six to seven percent of the property sale price. To the extent that the actual property disposition fees are less than the amount charged to the series, the manager will receive the difference as income.

 

Description of the Property Management Agreement

 

The Company will appoint an affiliate of the manager or a third-party property management company to serve as property manager to manage the underlying property of each series pursuant to a series specific property management agreement.

 

The services provided by the property manager will include:

 

  ● Collecting rent and maintaining books and records;

 

  ● Ensuring compliance with local landlord/tenant and other applicable laws;

 

  ● Routine property maintenance and responding to tenant maintenance requests;

 

  ● Handling tenant on-boarding (move-in) and move-out; and

 

  ● Investigating, selecting, and, on behalf of the applicable series, engaging and conducting business with such persons as the property manager deems necessary to ensure the proper performance of its obligations under the property management agreement, including but not limited to consultants, insurers, insurance agents, maintenance providers, bookkeepers and accountants and any and all persons acting in any other capacity deemed by the property manager necessary or desirable for the performance of any of the services under the property management agreement.

 

Each property management agreement will terminate on the earlier of: (i) the manager’s discretion to terminate a property management agreement at pre-determined renewal periods or by paying a termination fee, (ii) after the date on which the relevant series property has been liquidated and the obligations connected to the series property (including contingent obligations) have been terminated, (iii) the removal of the manager as managing member of our Company and thus of all series (if the property manager is the manager), (iv) upon notice by one party to the other party of a party’s material breach of a property management agreement or (v) such other date as agreed between the parties to the property management agreement.

 

Each series will indemnify the property manager out of its assets against all liabilities and losses (including amounts paid in respect of judgments, fines, penalties or settlement of litigation, including legal fees and expenses) to which it becomes subject by virtue of serving as property manager under the respective property management agreements with respect to any act or omission that has not been determined by a final, non-appealable decision of a court, arbitrator or other tribunal of competent jurisdiction to constitute fraud, willful misconduct or gross negligence.

 

Currently, we intend to enter into a property management agreement on behalf of each series with an affiliate of the manager or a third-party property management company. We reserve the right to change property managers at any time.

 

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Property Management Fee

 

The Company will appoint an affiliate of the manager or a third-party property management company to serve as property manager to manage the property of each series pursuant to a property management agreement. The fee arrangements for each property management company are set forth below:

 

Marketplace Homes

  

As compensation for the services provided by the property manager, each series will be charged a property management fee of $70 on a monthly basis and paid to the property manager pursuant to the property management agreement.

 

Mynd Property Management

  

As compensation for the services provided by the property manager, each series will be charged a property management fee equal to six percent (6%) of all rents and fees as remitted to the series or a minimum property management fee of $84 on a monthly basis and paid to the property manager pursuant to the property management agreement.

 

The property manager for each series is specified in the latest Offering Circular under “The Series Properties Being Offered.”

 

Liquidity Platform

 

Overview of PPEX ATS Platform

 

The Company and its affiliates intend to enter into an arrangement with NCPS and its affiliates to facilitate secondary transactions in interests issued by the Company on the PPEX ATS. The PPEX ATS is owned and operated by NCPS. The arrangement with NCPS will be established to provide a venue for secondary trading of series interests and is designed to provide investors with an efficient means to buy and sell series interests in secondary transactions. The manager will enter into a brokerage agreement and a license agreement with the Executing Broker pursuant to which, subject to restrictions under state and federal securities laws and the transfer restrictions listed in the operating agreement, the Executing Broker is engaged to execute all resale transactions in interests based on the matching of orders on the PPEX ATS. The Executing Broker is a registered broker-dealer member of the PPEX ATS. NCPS is a broker-dealer registered with the Commission and a member of FINRA and SIPC. Neither the Company nor the manager matches any orders or executes or settles any transfer of interests with respect to secondary trading on the PPEX ATS. The manager may elect not to transmit to the Executing Broker or the PPEX ATS any order information submitted by users who have not previously purchased securities issued by the Company or its affiliates pursuant to Regulation A.

 

Secondary trades of series interests matched on the PPEX ATS are intended to comply with Blue Sky laws either through a manual exemption in states where available, through a direct filing with the state securities regulators where required, or as isolated non-issuer transactions.  

 

Process for Secondary Transactions

 

During specific trading windows, which we expect to occur quarterly and announce at least a week in advance of such trading window, isolated non-issuer transactions in interests of one or more series may be effected during trading hours established by NCPS as operator of the PPEX ATS (“Market Hours”) in accordance with the following process. Investors can submit bid and ask quotes through the user interface provided by the Arrived platform during a trading window. The Arrived platform immediately and automatically routes the quotes (i) to the Executing Broker, and (ii) by virtue of the Executing Broker’s status as a member of the PPEX ATS, to the PPEX ATS, which is owned and operated by NCPS, a registered broker-dealer. The PPEX ATS then matches orders in accordance with the rules established by the PPEX ATS, but no matching of buyers and sellers will occur other than during Market Hours in a trading window. Bid and ask quotes submitted during a trading window and Market Hours may be immediately matched by the PPEX ATS, while bid and ask quotes submitted during a trading window, but outside of Market Hours are eligible to match only upon the next commencement of Market Hours. To the extent that any bid or ask quote that does not result in a match still exists at the end of a trading window, such quote will be cancelled at the end of the relevant trading window.

 

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Once matched by the PPEX ATS, orders are executed by the Executing Broker. When a trade is executed, the Executing Broker transmits the applicable information (including the number of interests and price at which they are being sold or purchased) to the Arrived platform, where it is displayed to the relevant investor. During Market Hours in a particular trading window, the Arrived platform periodically sends instructions regarding the transfer of funds for executed trades via the Executing Broker to Modern Treasury, Inc., the third-party holder of investor funds (“Modern Treasury”), which then effectuates the funds transfer between the buyer and seller. After Market Hours end, the Executing Broker provides instructions regarding any transfers of interests between investor accounts to the transfer agent, which transfers the interests accordingly. The clearing process, which includes the transfer of funds and interests, will be completed within one to two days following the conclusion of the relevant trading window. Neither the Arrived platform nor the Executing Broker clears or settles trades.

 

User Interface and Role of the Platform

 

The Arrived platform serves merely as the user interface for the purpose of enabling secondary market trading in interests. On the Arrived platform, investors input the details of any orders to buy or sell interests in secondary transactions (including the number of interests subject to the offer to buy or sell, as the case may be, and the price, if any, at which such offer is being made), and the orders then are routed (i) to the Executing Broker, and (ii) by virtue of the Executing Broker’s status as a member of the PPEX ATS, to the PPEX ATS. The manager may elect not to transmit to the Executing Broker or the PPEX ATS any order information submitted by users who have not previously purchased securities issued by the Company or its affiliates pursuant to Regulation A. For clarity, because the Executing Broker is (i) a registered broker-dealer and a member of the PPEX ATS and (ii) licensed to use the Arrived platform to access and transmit order information entered onto the Arrived platform by Investors, such order information is automatically routed from the Arrived platform to both the Executing Broker and the PPEX ATS simultaneously. After the Executing Broker has executed a trade, information about the matched orders and executed trade is then communicated by the Executing Broker to the buyer and seller using the Arrived platform’s user interface. The PPEX ATS accepts orders transmitted from the Arrived platform only because the Executing Broker (which is a member of the PPEX ATS) is licensed to use the Arrived platform’s technology to transmit order information.

 

For the avoidance of doubt, the decision whether to engage in secondary market trading is left solely to the individual investors. Neither the Company nor any of its affiliates acts as a broker or dealer, and none of them provide investors any direction or recommendation as to the purchase or sale of any interests in secondary market transactions. In addition, neither the Executing Broker nor NCPS makes any direction or recommendation as to the purchase or sale of any interests.

 

The Arrived platform acts as a user interface to receive information from, and deliver and display information to, investors and the registered broker-dealers. None of the Company, the manager, or Arrived Holdings, Inc. will receive any compensation for its role in the trading procedure unless and until it, or one of its affiliates, registers as a broker-dealer. The manager or one of its affiliates in the future may register as a broker-dealer under state and federal securities laws, at which time it may charge fees in respect of trading of interests.

 

Agreements Relating to Secondary Trading on the PPEX ATS

 

The Company intends to enter into an agreement (the “PPEX ATS Company Agreement”) with NCPS, pursuant to which NCPS will review the Company’s and series’ governing documents, offering materials and regulatory filings so that the PPEX ATS may serve as an available venue for the potential resale transactions in interests to be conducted in accordance with the process described above. The PPEX ATS provides a matching platform for the Executing Broker as a broker-dealer member of the PPEX ATS to submit bid and ask quotes to purchase or sell interests on behalf of, and as directed by, investors.

 

The manager intends to enter into a Software and Services License Agreement with NCIT, the parent company of NCPS. Under this agreement, the Arrived platform’s technology is connected via an application programming interface to the PPEX ATS to facilitate the routing of information from the Arrived platform as a user interface to the PPEX ATS as described above.

 

The Company also intends to enter into an agreement with the Executing Broker (the “Secondary Brokerage Agreement”), separate and apart from the Broker Dealer Agreement. Pursuant to the Secondary Brokerage Agreement, the Executing Broker will perform certain services in support of the secondary trading of interests on the PPEX ATS and will ultimately be responsible for the execution of secondary trades of interests. As compensation, the Executing Broker will receive up to 5% of the gross proceeds received related to each transaction (2.5% from the buyer and 2.5% from the seller involved in such transaction). The manager may, from time to time and at its sole discretion, opt to pay the compensation earned by the Executing Broker in connection with its services related to the PPEX ATS. 

 

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Asset Management Fee

 

Each series will pay the manager an annual asset management fee equal to six tenths of a percent (0.6%) of the purchase price of the series property for that series. This fee will be paid out of the net operating rental income of a series on a quarterly basis. 

 

Operating Expenses

 

Each series of our Company will be responsible for the following costs and expenses attributable to the activities of our Company related to such series (we refer to these as Operating Expenses):

 

  ● any and all fees, costs and expenses incurred in connection with the management of a series property, including Home Ownership Association (“HOA”) fees, income taxes, marketing, security and maintenance;

 

  ● any fees, costs and expenses incurred in connection with preparing any reports and accounts of each series, including any blue sky filings required in order for interest in a series to be made available to investors in certain states and any annual audit of the accounts of such series (if applicable) and any reports to be filed with the Commission including periodic reports on Forms 1-K, 1-SA and 1-U;

 

  ● any and all insurance premiums or expenses, including directors and officers insurance of the directors and officers of the manager or a property manager, in connection with the series property;

 

  ● any withholding or transfer taxes imposed on our Company or a series or any of the members as a result of its or their earnings, investments or withdrawals;

 

  ● any governmental fees imposed on the capital of our Company or a series or incurred in connection with compliance with applicable regulatory requirements;

 

  ● any legal fees and costs (including settlement costs) arising in connection with any litigation or regulatory investigation instituted against our Company, a series or a property manager in connection with the affairs of our Company or a series;

 

  ● the fees and expenses of any administrator, if any, engaged to provide administrative services to our Company or a series; 

 

  ● any fees, costs and expenses of a third-party registrar and transfer agent appointed by the manager in connection with a series;

 

  ● the cost of the audit of our Company’s annual financial statements and the preparation of its tax returns and circulation of reports to investors;

 

  ● the cost of any audit of a series annual financial statements and the fees, costs and expenses incurred in connection with making of any tax filings on behalf of a series and circulation of reports to investors;

 

  ● any indemnification payments to be made pursuant to the requirements of the operating agreement;

 

  ● the fees and expenses of our Company’s or a series’ counsel in connection with advice directly relating to our Company’s or a series’ legal affairs;

 

  ● the costs of any other outside appraisers, valuation firms, accountants, attorneys or other experts or consultants engaged by the manager in connection with the operations of our Company or a series; and

 

  ● any similar expenses that may be determined to be Operating Expenses, as determined by the manager in its reasonable discretion.

 

The manager will bear its own expenses of an ordinary nature, including all costs and expenses on account of rent, supplies, secretarial expenses, stationery, charges for furniture, fixtures and equipment, payroll taxes, remuneration and expenses paid to employees and utilities expenditures.

 

If the Operating Expenses exceed the amount of revenues generated from a series property and cannot be covered by any Operating Expense reserves on the balance sheet of such series property, the manager may (a) pay such Operating Expenses and not seek reimbursement, (b) loan the amount of the Operating Expenses to the applicable series, on which the manager may impose a reasonable rate of interest, and be entitled to reimbursement of such amount from future revenues generated by such series property (which we refer to as Operating Expenses Reimbursement Obligation(s)), and/or (c) cause additional interests to be issued in such series in order to cover such additional amounts.

 

9

 

Allocations of Expenses

 

To the extent relevant, Offering Expenses, Acquisition Expenses, Operating Expenses, revenue generated from series properties and any indemnification payments made by the manager will be allocated among the various series interests in accordance with the manager’s allocation policy set forth below. The allocation policy requires the manager to allocate items that are allocable to a specific series to be borne by, or distributed to (as applicable), the applicable series.  If, however, an item is not allocable to a specific series but to our Company in general, it will be allocated pro rata based on the value of the series properties or the number of properties, as reasonably determined by the manager or as otherwise set forth in the allocation policy. By way of example, as of the date hereof, it is anticipated that revenues and expenses will be allocated as follows:

 

Revenue or  Expense Item   Details   Allocation Policy (if revenue or expense is
not clearly allocable to a specific series property)
Revenue   Each of the series will have monthly rental income from the series property.   Allocable directly to the applicable series property
         
Acquisition Expenses   Appraisal and valuation fees (if incurred pre-closing)   Allocable directly to the applicable series property
    Appraisal and valuation fees (if incurred post-closing)   Allocable directly to the applicable series property
    Pre-purchase inspection   Allocable directly to the applicable series property
    Closing Costs   Allocable directly to the applicable series property
    Interest expense, if any, when an underlying series property is purchased by a series through a loan prior to the closing of a series offering   Allocable directly to the applicable series property
         
Offering Expenses   Legal expenses related to the preparation of regulatory paperwork (offering materials) for a series   Not allocable; to be borne by the manager
    Audit and accounting work related to the regulatory paperwork or a series   Allocable directly to the applicable series property
    Compliance work including diligence related to the preparation of a series   Not allocable; to be borne by the manager
    Insurance of a series property as at time of acquisition   Allocable directly to the applicable series property
    Broker fees other than cash commissions (e.g., expense reimbursement)     Not allocable; to be borne by the manager  
    Brokerage fee payable per filing of a Form 1-A Post-Qualification Amendment ($1,000 per 1-A POS)   Allocable directly to the applicable series
    Preparation of marketing materials   Not allocable; to be borne by the manager
         
Operating Expense   Property management fees   Allocable directly to the applicable series property
    Asset management fees   Allocable directly to the applicable series property
    Audit and accounting work related to the regulatory paperwork of a Series   Allocable pro rata to the number of series properties
    Security (e.g., surveillance and patrols)   Allocable pro rata to the value of each series property
    Insurance   Allocable directly to the applicable series property
    Maintenance   Allocable directly to the applicable series property
    Property marketing or lease concessions, including special offers and terms   Allocable directly to the applicable series property
    Property disposition fee   Allocable directly to the applicable series property
    Interest expense, if any, when a series property holds any type of term loan or line of credit   Allocable directly to the applicable series property
    Audit, accounting and bookkeeping related to the reporting requirements of a series   Allocable pro rata to the number of series properties
         
Indemnification Payments   Indemnification payments under the operating agreement   Allocable pro rata to the value of each series property

 

10

 

Notwithstanding the foregoing, the manager may revise and update the allocation policy from time to time in its reasonable discretion without further notice to the investors.

  

The Arrived Platform

 

Arrived Holdings, Inc., the sole member of Arrived Fund Manager, LLC, our manager, owns and operates a web-based and mobile accessible investment platform, the Arrived platform. Through the use of the Arrived platform, investors can browse and screen the investments offered by each of our series, now existing or to be formed by our Company in the future, and electronically sign legal documents to purchase series interests.

 

Competition

 

There are a number of established and emerging competitors in the real estate investment platform market. The market is fragmented, rapidly evolving, competitive, and with relatively low barriers to entry. We consider our competitive differentiators in our market to be:

 

  ● our focus on the single-family residential rental market;

 

  ● the ability for users to select which rental properties they would like to invest in;

 

  ● consistent rental income with use of moderate amounts of leverage;

 

  ● our unique investment strategy and approach to market selection;

 

  ● lower minimum investment amounts; and

 

  ● favorable tax treatment associated with REIT elections.

 

We face competition primarily from other real estate investment platform companies such as Roofstock, Inc., Fundrise LLC, and Compound Projects, LLC, as well as a range of emerging new entrants. In order to compete, we work tirelessly to innovate and improve our products, while at the same time preserving our unique culture and approach.

 

Conflicts of Interest

 

Conflicts of interest may exist or could arise in the future with the manager and its affiliates and our officers and/or directors who are also officers and/or directors of the manager. Conflicts may include, without limitation:

 

  ● Each of our executive officers will also serve as an officer of the manager and its affiliated entities.  As a result, these persons will have a conflict of interest with respect to our agreements and arrangements with the manager and/or affiliates of the manager, which were not negotiated at arm’s length, and their terms may not have been as favorable to us as if they had been negotiated at arm’s length with an unaffiliated third party.  The manager is not required to make available any particular individual personnel to us.

 

11

 

  ● Our executive officers will not be required to devote a specific amount of time to our affairs.  As a result, we cannot provide any assurances regarding the amount of time the manager will dedicate to the management of our business.  Accordingly, we may compete with manager and any of its current and future programs, funds, vehicles, managed accounts, ventures or other entities owned and/or managed by the manager or one of its affiliates, which we refer to collectively as the manager-sponsored vehicles, for the time and attention of these officers in connection with our business.  We may not receive the level of support and assistance that we might otherwise receive if we were internally managed.

 

  ● Some or all of the series will acquire their properties from the manager or from an affiliate of the manager. Prior to a sale to a series, the manager will acquire a property, repair and improve the property, and seek to place a tenant in the property. The manager will then resell the property to a series at a value determined by the manager or affiliate of the manager, which may reflect a premium over the manager’s investment in the property. Accordingly, because the manager will be an interested party with respect to a sale of a property that it owns to a series, the manager’s interests in such a sale may not be aligned with the interests of the series or its investors. There can be no assurance that a property purchase price that a series will pay to the manager will be comparable to that which a series might pay to an unaffiliated third party property seller.

 

  ● The manager may in the future form or sponsor additional manager-sponsored vehicles, which could have overlapping investment objectives. To the extent we have sufficient capital to acquire a property that the manager has determined to be suitable for us, that property will be allocated to us.

 

  ● The manager does not assume any responsibility beyond the duties specified in the operating agreement and will not be responsible for any action of our board of directors in following or declining to follow the manager’s advice or recommendations.  The manager’s liability is limited under the operating agreement and we have agreed to reimburse, indemnify and hold harmless the manager and its affiliates, with respect to all expenses, losses, damages, liabilities, demands, charges and claims in respect of, or arising from acts or omissions of, such indemnified parties not constituting bad faith, willful misconduct, gross negligence or reckless disregard of the manager’s duties under the operating agreement which has a material adverse effect on us.  As a result, we could experience poor performance or losses for which the manager would not be liable.

 

Employees

 

Our Company does not have any employees. All of the officers and directors of our Company are employees of the manager.

 

Legal Proceedings

 

None of our Company, any series, the manager, or any director or executive officer of our Company or the manager is presently subject to any material legal proceedings.

 

12

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation

 

Overview

 

Arrived Homes 3, LLC, a Delaware series limited liability company, was formed in January 2023 to permit public investment in individual residential properties. We believe people should have access to the wealth creation that real estate investment can provide. We believe in passive income, conservative debt, diversification, and aligned incentives.

   

Arrived is a marketplace for investing in real estate. We buy residential properties, divide them into multiple interests, and offer them as investments on a per interest basis through our web-based platform. Investors can manage their risk by spreading their investments across a portfolio of homes and they can invest in real estate without needing to apply for mortgages or take on personal debt.

   

Arrived does all of the work of sourcing, analyzing, maintaining, and managing all of the residential properties that we acquire. We analyze every property investment across several financial, market, and demographic characteristics to support our acquisition decision-making. Every investment we make is an investment in the communities in which Arrived operates, alongside other like-minded individuals. As our community network grows, so does our access to investment and housing opportunities.

   

Arrived arranges for a property manager to operate the properties as single-family rentals for tenants who can also invest through the same process as any other member of the Arrived platform, becoming part owners of the homes they’re staying in at that time. By investing together, we align incentives towards creating value for everyone.

  

Since its formation in January 2023, our Company has been engaged primarily in acquiring properties for its series offerings, developing the financial, offering and other materials to facilitate fundraising, and taking the steps necessary to effectuate the series offerings and the management of the associated series properties. As of December 31, 2025, our Company has acquired 82 properties.

   

Emerging Growth Company

 

We may elect to become a public reporting company under the Exchange Act. If we elect to do so, we will be required to publicly report on an ongoing basis as an emerging growth company, as defined in the JOBS Act, under the reporting rules set forth under the Exchange Act. For so long as we remain an emerging growth company, we may take advantage of certain exemptions from various reporting requirements that are applicable to other Exchange Act reporting companies that are not emerging growth companies, including, but not limited to:

 

  ● not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act;

 

  ● being permitted to comply with reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements; and

 

  ● being exempt from the requirement to hold a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

 

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

 

We would expect to take advantage of these reporting exemptions until we are no longer an emerging growth company. We would remain an emerging growth company for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1 billion; (ii) the date that we become a large accelerated filer as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our common shares that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter; or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three-year period. 

 

13

 

Distributions

 

In order to qualify as a REIT, a series must distribute annually to investors at least 90% of its REIT taxable income (computed without regard to the dividends paid deduction and excluding net capital gain), and to avoid federal income and excise taxes on retained taxable income and gains, it must distribute 100% of such income and gains annually. Our manager may authorize distributions in excess of those required for us to maintain our REIT status and/or avoid such taxes on retained taxable income and gains depending on our financial condition and such other factors as our manager deems relevant.

 

Our Company expects the manager to make distributions of any free cash flow on a monthly or other periodic basis as determined by the manager. However, the manager may change the timing of distributions in its sole discretion. Investors will be required to update their personal information on a regular basis to make sure they receive all allocated distributions. We will utilize a “mobile wallet” feature for payment of distributions (the “Arrived Homes Wallet”). The Arrived Homes Wallet will be used to allow investors to pay for subscriptions, receive distributions and reinvest distributions.

 

Valuation Policies

 

Following the six-month introductory period, at the end of each quarterly period, our manager’s internal accountants and asset management team will calculate a net asset value (“NAV”) per interest for each series using a process that reflects, among other matters.

 

●an estimated value of the series property, as determined by the manager’s asset management team, including related liabilities, based upon (a) information from publicly available sources related to (i) market rents, comparable sales information and interest rates and (ii) with respect to debt, default rates and discount rates, and (b) in certain instances, reports regarding the underlying real estate provided by an independent valuation expert or automated valuation models;

 

  ● the price of liquid assets for which third party market quotes are available;

 

●accruals of our periodic distributions on interests in the series; and

 

●estimated accruals of the revenues, fees and expenses of the series where we will (a) amortize the brokerage fee, offering expenses and sourcing fee over five years and (b) include accrued fees and operating expenses, accrued distributions payable, accrued management fees and any inter-company loans extended to the series by our manager.

 

Such determinations may include subjective judgments by the manager regarding the applicability of certain inputs to market rents and comparable sales information. While we do look at capitalization rates to help us determine whether or not to acquire a property (see “Description of Business - Our Investment Criteria” in our latest Offering Circular), we do not utilize a capitalization rate approach in determining NAV, because given the nature of the series properties as primary residences, we do not believe that the value of a series’ primary asset can be determined based solely on the series’ rental revenues as the resale value of such asset will be decided independently of the success of such rental revenues.

  

Note, however, that the determination of the NAV for the interests of each series is not based on, nor intended to comply with, fair value standards under U.S. Generally Accepted Accounting Principles (“GAAP”), and such NAV may not be indicative of the price that we would receive for our assets at current market conditions. In instances where we determine that an appraisal of the series property is necessary, including, but not limited to, instances where the manager is unsure of its ability on its own to accurately determine the estimated value of such series property, or instances where third party market values for comparable properties are either nonexistent or extremely inconsistent, we will engage an appraiser that has expertise in appraising residential real estate assets, to act as our independent valuation expert. The independent valuation expert is not responsible for, nor for preparing, our NAV per interest. See “Description of the Securities Being Offered⸺Valuation Policies” in our latest Offering Circular for more details about the NAV and how it will be calculated, including the subsection “NAV Estimates Determination and Valuation Methodology” for additional information regarding our manager’s NAV valuation methodology. 

 

Critical Accounting Policies

 

Our accounting policies will conform with GAAP. The preparation of financial statements in conformity with GAAP will require us to use judgment in the application of accounting policies, including making estimates and assumptions. These judgments may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. We intend to make these estimates and assumptions in an appropriate manner and in a way that accurately reflects our financial condition. We will continually test and evaluate our estimates and assumptions using our historical knowledge of the business, as well as other factors, to ensure that they are reasonable for reporting purposes. However, actual results may differ from our estimates and assumptions.

 

14

 

We believe our critical accounting policies govern the significant judgments and estimates used in the preparation of our financial statements. Please refer to Note 2, Summary of Significant Accounting Policies, included in the financial statements, for a more thorough discussion of our accounting policies and procedures.

 

Operating Results

 

Revenues

 

Revenues are generated at the series level and are derived from leases on the series property. All revenues generated by each series during the years ended December 31, 2025 and 2024 are listed in the table below. Consolidated rental income was $2,060,996 for the year ended December 31, 2025 compared to the rental income of $1,805,660 for the year ended December 31, 2024. The increase in rental revenue is primarily attributable to higher occupancy and rental rate increases of the Company’s existing properties. Such amounts are based on the audited financial statements of the Company and each series included in this Annual Report on Form 1-K:

 

Rental Income
         
Series Name  December 31,
2025		   December 31,
2024		 
Adams  $25,690   $(559)
Antares   23,820    23,340 
Aramis   24,940    24,540 
Arkoma   19,492    19,140 
Arya   13,815    16,740 
Aspen   24,860    17,776 
Athos   25,620    25,140 
Barclay   24,360    23,586 
Bayne   27,720    72 
Bean   26,490    25,740 
Bennett   20,927    20,340 
Benny   21,960    21,184 
Bluebell   21,236    25,440 
Bowling   18,960    17,953 
Boxwood   22,448    - 
Bradford   23,460    22,686 
Brookwood   22,963    22,440 
Bryant   25,465    25,140 
Caden   19,140    17,313 
Camellia   22,464    21,540 
Caterpillar   12,358    21,540 
Chilhowee   28,740    19,000 
Claremore   18,240    11,334 
Collinison   25,140    24,860 
Cordero   12,270    24,540 
Cristalino   30,540    26,214 
Ellie   18,883    8,362 
Emelina   18,997    20,940 
Ethan   18,300    17,700 
Frances   24,660    23,163 
Glenncrest   13,767    23,741 
Gordon   25,346    22,740 
Haikey   18,459    20,574 
Hamblen   22,251    25,140 
Hancock   24,490    23,870 
Hardman   30,340    29,940 
Haven   17,940    13,820 
Haverhill   24,088    24,819 
Haybridge   18,502    22,626 
Hedgecrest   19,950    18,554 
Helmerich   18,219    19,306 
Hermanos   26,340    16,270 
Holmes   14,655    16,740 

 

15

 

Series Name  December 31,
2025		   December 31,
2024		 
Johnson   29,040    13,185 
Keystone   21,854    25,322 
Langley   30,540    114 
Laurel   26,304    24,710 
Layla   26,840    24,845 
Liberty   23,340    21,787 
Lithonia   23,940    17,689 
Lola   25,790    25,440 
Lucas   18,024    24,540 
Macomber   25,692    26,005 
Mallard   14,506    20,940 
Marcy   16,735    15,692 
Meridian   22,155    22,245 
Metallo   12,508    - 
Misty   31,140    1,403 
Montgomery   19,740    16,624 
Northbrook   22,740    17,055 
Northridge   11,761    10,679 
Oakland   26,640    20,129 
Palmore   12,303    17,040 
Pebblestone   27,540    24,394 
Perdita   19,163    23,452 
Phoebe   23,850    18,240 
Pongo   16,760    24,577 
Portsmouth   15,117    21,540 
Presidio   17,822    - 
Rachel   21,955    18,315 
Ratliff   25,440    21,200 
Riverwood   14,623    24,528 
Roanoke   30,340    32,239 
Robinson   28,390    3,799 
Ross   28,400    27,531 
Sansa   17,190    16,740 
Sedgefield   26,239    16,766 
Seneca   26,940    4,065 
Sheezy   22,540    21,840 
Sherwood   9,932    16,740 
Spangler   22,311    - 
Summerglen   21,870    20,122 
Tansel   24,697    28,740 
Thomas   16,092    21,390 
Tomlinson   16,680    - 
Tytus   25,020    24,540 
Vanzant   26,940    24,022 
Watson   13,203    16,740 
Westhaven   23,040    18,979 
Wheeler   20,655    19,788 
Williamson   16,588    26,640 
Woodland   14,745    15,540 
Woodwind   14,036    20,327 
Wynde   21,116    23,640 
Wyndhurst   16,268    23,142 
Zane   15,600    15,300 
           
   $2,060,996   $1,805,660 

 

16

 

Operating Expenses

 

The Company incurred the following operating expenses during the years ended December 31, 2025 and 2024. Consolidated operating expenses increased from $1,777,769 for the year ended December 31, 2024 to $2,101,805 for the year ended December 31, 2025. The increase is primarily attributable to higher property operating costs, including increases in property taxes, insurance premiums, repairs and maintenance, and utilities. The operating expenses incurred prior to the closing of an offering related to any of the series are being paid by our manager and are reimbursed by such series out of the gross offering proceeds upon closing of the relevant series offering. Such operating expenses include real estate taxes, property insurance, HOA fees, legal fees, other professional fees, depreciation, and repair and maintenance costs.

 

Upon closing, each individual series becomes responsible for funding its own operating expenses. The following table summarizes the total operating expenses by series as of December 31, 2025 and 2024. Such amounts are based on the audited financial statements of the Company and each series included in this Annual Report on Form 1-K:

 

Operating Expenses
 
   December 31, 2025   December 31, 2024 
Series Name  Operating Expenses   Depreciation   Total Expenses   Operating Expenses   Depreciation   Total Expenses 
Adams  $13,450   $8,394   $21,844   $7,544   $-   $7,544 
Antares   13,105    8,514    21,618    10,338    8,514    18,851 
Aramis   12,304    8,246    20,551    13,342    8,246    21,588 
Arkoma   10,571    6,489    17,060    6,860    6,489    13,349 
Arya   8,491    4,933    13,424    21,869    4,933    26,802 
Aspen   9,652    7,358    17,010    15,238    7,358    22,596 
Athos   14,367    9,155    23,522    21,888    9,155    31,043 
Barclay   12,160    8,416    20,576    11,125    8,416    19,541 
Bayne   16,190    9,614    25,804    5,318    -    5,318 
Bean   11,594    8,057    19,651    12,755    8,057    20,813 
Bennett   8,351    5,820    14,171    8,493    5,820    14,313 
Benny   16,332    7,006    23,338    11,919    7,006    18,925 
Bluebell   23,450    8,215    31,665    12,729    8,215    20,945 
Bowling   8,214    5,724    13,938    7,443    5,724    13,167 
Boxwood   17,007    8,840    25,847    2,762    -    2,762 
Bradford   10,267    8,361    18,628    9,306    8,361    17,667 
Brookwood   11,440    7,707    19,147    10,331    7,707    18,038 
Bryant   33,673    8,784    42,457    14,739    8,784    23,523 
Caden   10,997    6,875    17,872    19,153    6,875    26,028 
Camellia   10,510    9,622    20,132    12,614    9,622    22,236 
Caterpillar   29,131    8,248    37,379    15,256    8,248    23,504 
Chilhowee   11,498    8,941    20,439    12,714    8,941    21,655 
Claremore   9,021    6,464    15,485    20,068    6,464    26,532 
Collinison   12,506    9,331    21,837    11,689    8,303    19,992 
Cordero   13,236    7,720    20,956    12,313    7,720    20,034 
Cristalino   12,501    8,450    20,952    22,796    8,450    31,246 
Ellie   22,165    7,897    30,062    11,336    7,897    19,232 
Emelina   12,209    8,243    20,452    9,860    8,243    18,103 
Ethan   17,643    8,294    25,937    12,484    7,279    19,763 
Frances   10,755    7,674    18,429    10,682    7,035    17,717 
Glenncrest   14,414    7,982    22,396    11,161    7,982    19,143 
Gordon   11,584    7,024    18,608    10,072    7,024    17,097 
Haikey   15,818    6,735    22,553    11,171    6,735    17,906 
Hamblen   12,196    7,053    19,249    6,772    7,053    13,826 
Hancock   15,403    8,454    23,856    10,887    8,454    19,340 
Hardman   14,335    10,652    24,986    13,004    10,652    23,656 
Haven   6,800    5,098    11,898    9,471    5,098    14,570 
Haverhill   16,552    6,449    23,001    10,290    6,449    16,740 
Haybridge   13,902    9,862    23,763    12,079    9,862    21,941 
Hedgecrest   19,252    10,874    30,126    14,192    9,862    24,053 
Helmerich   13,634    6,925    20,558    8,486    6,925    15,411 
Hermanos   12,282    11,828    24,110    17,028    11,828    28,856 
Holmes   14,906    4,839    19,745    4,973    4,839    9,812 

 

17

 

   December 31, 2025   December 31, 2024 
Series Name  Operating Expenses   Depreciation   Total Expenses   Operating Expenses   Depreciation   Total Expenses 
Johnson   12,708    9,021    21,729    14,483    3,759    18,242 
Keystone   12,947    9,569    22,515    13,600    8,771    22,371 
Langley   17,161    9,119    26,280    9,918    -    9,918 
Laurel   14,214    9,261    23,475    16,617    7,718    24,335 
Layla   11,926    8,906    20,832    14,987    8,906    23,893 
Liberty   13,049    11,091    24,139    17,468    9,716    27,184 
Lithonia   15,659    9,926    25,585    26,680    9,389    36,069 
Lola   12,506    8,831    21,337    9,723    8,288    18,011 
Lucas   18,949    8,140    27,090    16,994    8,140    25,134 
Macomber   19,692    8,571    28,264    17,840    8,571    26,411 
Mallard   8,481    5,724    14,204    12,419    5,724    18,142 
Marcy   7,747    4,933    12,680    7,201    4,933    12,134 
Meridian   14,768    8,983    23,751    11,094    8,697    19,791 
Metallo   17,725    7,348    25,073    6,023    -    6,023 
Misty   15,159    9,445    24,605    8,297    -    8,297 
Montgomery   8,793    8,347    17,140    16,133    7,441    23,574 
Northbrook   11,862    7,744    19,605    12,428    7,744    20,172 
Northridge   13,265    7,070    20,336    14,367    6,481    20,848 
Oakland   11,553    8,444    19,997    12,917    8,444    21,361 
Palmore   17,348    6,911    24,259    9,853    6,911    16,764 
Pebblestone   12,620    9,284    21,903    12,145    8,510    20,655 
Perdita   13,479    9,121    22,600    10,120    9,121    19,241 
Phoebe   10,140    7,636    17,776    13,098    7,000    20,098 
Pongo   12,846    9,121    21,966    11,008    9,121    20,129 
Portsmouth   17,289    6,862    24,152    10,119    5,864    15,983 
Presidio   14,152    6,575    20,727    13,782    -    13,782 
Rachel   10,559    7,943    18,502    12,582    7,943    20,526 
Ratliff   9,261    8,789    18,049    12,835    8,789    21,624 
Riverwood   18,631    10,040    28,671    11,757    10,040    21,797 
Roanoke   12,258    9,207    21,465    13,440    9,207    22,647 
Robinson   11,835    8,819    20,653    8,156    735    8,891 
Ross   11,188    9,164    20,352    13,125    9,164    22,290 
Sansa   7,450    4,933    12,383    4,906    4,933    9,839 
Sedgefield   11,426    8,027    19,453    16,115    6,020    22,135 
Seneca   14,264    8,114    22,378    8,324    1,352    9,676 
Sheezy   16,350    6,430    22,780    11,205    6,430    17,635 
Sherwood   16,252    4,796    21,048    4,666    4,796    9,463 
Spangler   22,458    11,745    34,203    7,144    -    7,144 
Summerglen   11,172    6,661    17,832    7,762    6,661    14,423 
Tansel   17,487    8,951    26,438    13,937    8,951    22,889 
Thomas   16,907    6,030    22,936    8,859    6,030    14,889 
Tomlinson   30,829    6,664    37,493    2,459    -    2,459 
Tytus   10,009    7,158    17,167    10,469    7,158    17,628 
Vanzant   14,778    9,724    24,502    18,342    8,914    27,255 
Watson   8,367    4,839    13,205    3,397    4,839    8,235 
Westhaven   10,960    7,017    17,976    18,890    7,017    25,907 
Wheeler   7,387    5,729    13,116    6,579    5,729    12,308 
Williamson   38,909    7,880    46,790    9,714    7,880    17,594 
Woodland   7,827    5,853    13,680    6,312    5,853    12,165 
Woodwind   13,719    7,008    20,727    13,585    7,008    20,594 
Wynde   11,397    8,048    19,445    11,538    8,048    19,585 
Wyndhurst   12,385    8,514    20,899    15,188    8,514    23,701 
Zane   8,003    4,602    12,605    6,251    4,481    10,732 
                               
   $1,341,971   $759,834   $2,101,805   $1,131,403   $646,366   $1,777,769 

 

18

 

Other Expenses (Income)

  

During the years ended December 31, 2025 and 2024, some series incurred interest expenses, including bridge financing interest and amortization of loan fees. The following table summarizes the total of such expenses incurred by each series during the years ended December 31, 2025 and 2024. Total other income (expense) changed from net expense of $65,117 for the year ended December 31, 2024 to net income of $7,307 for the year ended December 31, 2025. This change of $72,424 is primarily attributable to the repayment of outstanding debt and interest income earned on the Company’s cash balances during the year. Such amounts are based on the audited financial statements of the Company and each series included in this Annual Report on Form 1-K:

 

OTHER EXPENSES (INCOME)
 
Series Name  December 31,
2025		   December 31,
2024		 
Adams  $540   $3,000 
Antares   -    - 
Aramis   -    - 
Arkoma   -    - 
Arya   389    - 
Aspen   -    - 
Athos   -    - 
Barclay   -    - 
Bayne   2,260    2,876 
Bean   -    - 
Bennett   -    - 
Benny   -    - 
Bluebell   -    - 
Bowling   -    - 
Boxwood   3,080    2,695 
Bradford   -    - 
Brookwood   -    - 
Bryant   (14,762)   - 
Caden   413    15 
Camellia   -    - 
Caterpillar   9    - 
Chilhowee   -    - 
Claremore   -    - 
Collinison   -    - 
Cordero   -    - 
Cristalino   1,175    46 
Ellie   119    - 
Emelina   -    - 
Ethan   (1,200)   98 
Frances   -    - 
Glenncrest   -    6,314 
Gordon   -    - 
Haikey   -    - 
Hamblen   -    - 
Hancock   -    - 
Hardman   -    - 
Haven   395    - 
Haverhill   -    - 
Haybridge   -    - 
Hedgecrest   -    - 
Helmerich   -    - 
Hermanos   487    - 
Holmes   -    - 

 

19

 

Series Name  December 31,
2025		   December 31,
2024		 
Johnson   -    2,993 
Keystone   -    - 
Langley   663    3,644 
Laurel   -    7,746 
Layla   -    - 
Liberty   600    60 
Lithonia   1,823    66 
Lola   -    - 
Lucas   -    - 
Macomber   -    - 
Mallard   -    - 
Marcy   -    - 
Meridian   -    - 
Metallo   1,657    1,657 
Misty   -    3,270 
Montgomery   803    (6,969)
Northbrook   -    - 
Northridge   -    - 
Oakland   -    8,263 
Palmore   -    - 
Pebblestone   -    - 
Perdita   -    - 
Phoebe   -    6,011 
Pongo   -    - 
Portsmouth   -    - 
Presidio   2,576    2,338 
Rachel   -    - 
Ratliff   -    - 
Riverwood   5    - 
Roanoke   -    - 
Robinson   -    3,134 
Ross   -    - 
Sansa   -    - 
Sedgefield   -    9,583 
Seneca   -    2,743 
Sheezy   -    - 
Sherwood   -    - 
Spangler   2,489    3,168 
Summerglen   -    - 
Tansel   5    - 
Thomas   -    - 
Tomlinson   4,156    2,368 
Tytus   -    - 
Vanzant   -    - 
Watson   -    - 
Westhaven   -    - 
Wheeler   -    - 
Williamson   (15,391)   - 
Woodland   -    - 
Woodwind   -    - 
Wynde   402    - 
Wyndhurst   -    - 
Zane   -    - 
           
   $(7,307)  $65,117 

 

Liquidity and Capital Resources

  

From inception, our manager has financed the business activities of each series. Upon the first closing of a particular series offering, the manager is reimbursed out of the proceeds of the relevant offering. Until such time as the series have the capacity to generate cash flows from operations, our manager may cover any deficits through capital contributions, which may be reimbursed upon closing of the relevant offering.

 

20

 

As discussed in Note 3 to the consolidated financial statements, the Company’s ability to continue as a going concern is dependent upon the ability to generate cash flow from rental activities and/or obtain financing from the manager. Management believes that the continued support of the manager, the planned launch of additional series offerings, and the cash generated from rental operations will provide sufficient liquidity to meet the Company’s obligations. However, there can be no assurance that these plans will be successful.

 

Cash and Cash Equivalent Balances

 

Cash is held at the series level. The following table summarizes the cash and cash equivalents held by each series as of December 31, 2025 and 2024. Total consolidated cash and cash equivalents decreased from $1,129,818 as of December 31, 2024 to $1,054,521 as of December 31, 2025. This decrease was primarily attributable to distributions to investors of $1,217,737 during 2025, partially offset by cash provided by operating activities and net proceeds from the issuance of membership units of $2,711,403. Such amounts are based on the audited financial statements of the Company and each series included in this Annual Report on Form 1-K:

 

Cash & Cash Equivalents
 
Series Name  December 31,
2025		   December 31,
2024		 
Adams  $17,449   $- 
Antares   10,441    12,203 
Aramis   8,460    7,204 
Arkoma   18,959    23,313 
Arya   5,000    2,277 
Aspen   6,987    3,249 
Athos   7,823    9,313 
Barclay   23,120    24,025 
Bayne   20,693    - 
Bean   9,210    11,429 
Bennett   7,383    7,455 
Benny   7,499    3,024 
Bluebell   9,768    19,029 
Bowling   5,912    5,720 
Boxwood   22,179    - 
Bradford   21,592    22,583 
Brookwood   5,814    6,608 
Bryant   9,087    8,432 
Caden   5,048    1,152 
Camellia   7,649    5,838 
Caterpillar   3,475    11,778 
Chilhowee   11,278    12,661 
Claremore   5,478    - 
Collinison   14,600    24,688 
Cordero   8,053    14,543 
Cristalino   8,211    6,894 
Ellie   11,100    4,683 
Emelina   5,986    3,176 
Ethan   6,809    3,281 
Frances   15,231    19,302 
Glenncrest   14,445    18,053 
Gordon   11,415    14,335 
Haikey   8,750    10,753 
Hamblen   10,196    13,581 
Hancock   7,279    7,665 
Hardman   15,198    18,728 
Haven   7,071    2,123 
Haverhill   7,384    6,658 
Haybridge   17,840    18,262 
Hedgecrest   11,384    16,561 
Helmerich   13,100    15,946 
Hermanos   8,110    6,549 
Holmes   7,168    12,837 

 

21

 

Series Name  December 31,
2025		   December 31,
2024		 
Johnson   20,851    23,239 
Keystone   11,359    16,296 
Langley   10,723    - 
Laurel   17,601    24,838 
Layla   10,760    14,604 
Liberty   7,694    4,897 
Lithonia   5,603    6,926 
Lola   8,921    20,051 
Lucas   8,321    15,168 
Macomber   8,254    10,353 
Mallard   10,438    11,162 
Marcy   6,595    10,940 
Meridian   3,298    4,306 
Metallo   13,131    - 
Misty   24,756    25,490 
Montgomery   8,198    4,362 
Northbrook   14,424    16,387 
Northridge   9,949    19,278 
Oakland   14,331    18,656 
Palmore   704    4,155 
Pebblestone   10,154    14,763 
Perdita   17,167    20,002 
Phoebe   13,273    17,909 
Pongo   21,033    22,874 
Portsmouth   2,270    8,984 
Presidio   7,747    - 
Rachel   11,023    17,393 
Ratliff   10,698    14,030 
Riverwood   4,342    7,240 
Roanoke   15,280    22,621 
Robinson   26,868    24,787 
Ross   18,303    23,357 
Sansa   11,946    13,296 
Sedgefield   26,098    23,488 
Seneca   18,665    23,414 
Sheezy   7,284    14,858 
Sherwood   631    8,977 
Spangler   13,075    - 
Summerglen   7,409    6,370 
Tansel   8,065    6,633 
Thomas   5,351    9,480 
Tomlinson   8,009    - 
Tytus   16,773    19,226 
Vanzant   6,993    15,649 
Watson   10,942    14,142 
Westhaven   7,364    6,388 
Wheeler   16,527    14,689 
Williamson   6,845    20,047 
Woodland   5,923    4,751 
Woodwind   3,710    4,408 
Wynde   7,666    4,051 
Wyndhurst   18,563    22,986 
Zane   12,979    15,987 
           
   $1,054,521   $1,129,818 

 

22

 

Plan of Operations

 

We intend to hold and manage the series properties for five to seven years during which time we will operate the series properties as single-family rental income properties. During this period, we intend to distribute any free cash flow to investors.

  

As each of our properties reaches what we believe to be its optimum value, we will consider disposing of the property. The determination of when a particular property should be sold or otherwise disposed of will be made after consideration of relevant factors, including prevailing and projected economic conditions, whether the value of the property is anticipated to appreciate or decline substantially, local regulatory changes, environmental and other factors that may reduce the desirability of single-family rentals in a particular market, and how operating history may impact the potential sales price. The manager may determine that it is in the best interests of members to sell a property earlier than five years or to hold a property for more than seven years.

  

We plan to launch a number of additional series and related offerings in the next twelve months.  As of the current date, we do not know how many series we will be offering. However, in any case, the aggregate dollar amount of all of the series interests that we will sell within the 12-month period will not exceed the maximum amount allowed under Regulation A. It is anticipated that the proceeds from any offerings closed during the next twelve months will be used to acquire additional properties.

 

Our Policies for Approving New Tenants 

 

We intend to seek out tenants for our properties who are financially responsible and capable of paying their rent. We will conduct due diligence on prospective tenant applicants by (a) verifying their incomes, (b) running credit checks, (c) performing criminal background checks, and (d) requesting references from previous landlords. While we do not have specific standards for any of these items, we will use these screening methods to determine, prior to approving a lease, whether we believe a potential lessee is financially responsible.

 

Trend Information

 

Our results of operations are affected by a variety of factors, including conditions in the financial markets and the economic and political environments, particularly in the United States. Global economic conditions, including political environments, financial market performance, interest rates, credit spreads or other conditions beyond our control are unpredictable and could negatively affect the value of the series properties, our ability to acquire and manage single family rentals and the success of our current and future offerings. In addition to the aforementioned macroeconomic trends, we believe the following factors will influence our future performance:

 

  - Recent increases in interest rates may have a negative effect on the demand for our offerings due to the attractiveness of alternative investments.

 

  - The continuing increase in prices in the United States housing market may result in difficulties in sourcing properties and meeting demand for our offerings.

 

  - Continued increases in remote work arrangements may lead to greater rental activity in our target markets.

 

23

 

Recent Developments

 

Revenues

  

Revenues are generated at the series level and are derived from leases on the series property. All revenues generated by any series during the period January 1, 2026 through February 28, 2026 are listed below. For the avoidance of doubt, the below amounts are unaudited.

 

Rental Income
     
Series Name  February 28,
2026		 
Adams  $4,290 
Antares   1,951 
Aramis   4,250 
Arkoma   3,490 
Arya   2,700 
Aspen   3,740 
Athos   4,350 
Barclay   4,110 
Bayne   5,040 
Bean   4,590 
Bennett   3,590 
Benny   3,730 
Bluebell   4,240 
Bowling   3,200 
Boxwood   4,390 
Bradford   3,980 
Brookwood   3,970 
Bryant   4,320 
Caden   3,190 
Camellia   3,810 
Caterpillar   3,500 
Chilhowee   4,790 
Claremore   3,040 
Collinison   4,190 
Cordero   1,578 
Cristalino   5,090 
Ellie   3,039 
Emelina   3,590 
Ethan   3,150 
Frances   4,160 
Glenncrest   3,500 
Gordon   4,659 
Haikey   3,690 
Hamblen   4,290 
Hancock   261 
Hardman   5,150 
Haven   2,990 
Haverhill   3,651 
Haybridge   3,990 
Hedgecrest   - 
Helmerich   3,500 
Hermanos   4,390 
Holmes   2,750 

 

24

 

Series Name  February 28,
2026		 
Johnson   4,840 
Keystone   4,040 
Langley   5,090 
Laurel   2,395 
Layla   4,490 
Liberty   3,890 
Lithonia   3,990 
Lola   4,380 
Lucas   3,890 
Macomber   4,490 
Mallard   2,990 
Marcy   2,860 
Meridian   3,700 
Metallo   3,540 
Misty   5,190 
Montgomery   3,290 
Northbrook   3,790 
Northridge   3,300 
Oakland   4,440 
Palmore   930 
Pebblestone   4,590 
Perdita   4,190 
Phoebe   4,020 
Pongo   - 
Portsmouth   2,842 
Presidio   3,490 
Rachel   3,990 
Ratliff   4,240 
Riverwood   3,228 
Roanoke   5,150 
Robinson   3,555 
Ross   4,800 
Sansa   2,970 
Sedgefield   3,863 
Seneca   4,490 
Sheezy   3,780 
Sherwood   2,440 
Spangler   5,090 
Summerglen   3,700 
Tansel   4,590 
Thomas   3,441 
Tomlinson   3,600 
Tytus   4,250 
Vanzant   4,490 
Watson   2,750 
Westhaven   3,840 
Wheeler   - 
Williamson   3,700 
Woodland   - 
Woodwind   3,190 
Wynde   3,890 
Wyndhurst   3,490 
Zane   2,670 
      
   $345,732 

 

25

 

Operating Expenses

 

The Company incurred the following operating expenses during the period January 1, 2026 through February 28, 2026. The operating expenses incurred prior to the closing of an offering related to any of the series are being paid by our manager and are reimbursed by such series out of the gross offering proceeds upon closing of the relevant series offering. Such operating expenses include real estate taxes, property insurance, HOA fees, legal fees, other professional fees, depreciation, and repair and maintenance costs. Upon closing, each series becomes responsible for its own operating expenses.

 

During the period January 1, 2026 through February 28, 2026, at the close of the respective offerings for the series, each individual series became or will become, as applicable, responsible for its own operating expenses. The following table summarizes the total operating expenses incurred by each series during the period January 1, 2026 through February 28, 2026. For the avoidance of doubt, the below amounts are unaudited.

 

Operating Expenses
             
February 28, 2026
Series Name  Operating Expenses   Depreciation   Total Expenses 
Adams  $2,468   $1,399   $3,867 
Antares   5,781    1,419    7,200 
Aramis   2,008    1,374    3,382 
Arkoma   1,543    1,082    2,624 
Arya   2,393    822    3,215 
Aspen   1,765    1,226    2,991 
Athos   3,237    1,526    4,763 
Barclay   1,638    1,403    3,041 
Bayne   2,345    1,602    3,948 
Bean   1,517    1,343    2,860 
Bennett   1,614    970    2,584 
Benny   3,275    1,168    4,443 
Bluebell   3,125    1,369    4,494 
Bowling   1,971    954    2,925 
Boxwood   2,038    1,473    3,511 
Bradford   1,620    1,393    3,014 
Brookwood   1,924    1,285    3,209 
Bryant   2,640    1,464    4,104 
Caden   2,619    1,146    3,765 
Camellia   1,546    1,604    3,149 
Caterpillar   3,975    1,375    5,350 
Chilhowee   2,329    1,490    3,819 
Claremore   1,613    1,077    2,691 
Collinison   2,066    1,555    3,621 
Cordero   3,919    1,287    5,206 
Cristalino   2,761    1,408    4,169 
Ellie   3,460    1,316    4,776 
Emelina   2,001    1,374    3,375 
Ethan   1,644    1,382    3,027 
Frances   1,497    1,279    2,776 
Glenncrest   1,713    1,330    3,043 
Gordon   2,782    1,171    3,953 
Haikey   1,908    1,123    3,031 
Hamblen   2,696    1,176    3,871 
Hancock   2,261    1,409    3,670 
Hardman   2,387    1,775    4,163 
Haven   2,129    850    2,979 
Haverhill   4,637    1,075    5,712 
Haybridge   1,733    1,644    3,376 
Hedgecrest   2,727    1,846    4,573 
Helmerich   1,910    1,154    3,064 
Hermanos   3,607    1,971    5,579 
Holmes   1,448    806    2,255 

 

26

 

Series Name  Operating Expenses   Depreciation   Total Expenses 
Johnson   2,583    1,503    4,086 
Keystone   2,945    1,595    4,540 
Langley   1,990    1,520    3,510 
Laurel   1,851    1,544    3,394 
Layla   2,089    1,484    3,573 
Liberty   2,480    1,848    4,329 
Lithonia   4,347    1,654    6,001 
Lola   1,980    1,562    3,542 
Lucas   2,660    1,357    4,017 
Macomber   2,630    1,429    4,058 
Mallard   1,429    954    2,383 
Marcy   1,370    822    2,192 
Meridian   2,146    1,497    3,643 
Metallo   1,797    1,336    3,133 
Misty   2,546    1,574    4,120 
Montgomery   1,559    1,391    2,950 
Northbrook   1,773    1,291    3,064 
Northridge   1,392    1,178    2,571 
Oakland   2,289    1,407    3,696 
Palmore   6,625    1,152    7,777 
Pebblestone   1,697    1,547    3,244 
Perdita   1,740    1,520    3,260 
Phoebe   1,732    1,273    3,005 
Pongo   2,484    1,520    4,004 
Portsmouth   1,820    1,177    2,997 
Presidio   2,805    1,096    3,901 
Rachel   2,446    1,324    3,770 
Ratliff   2,078    1,465    3,543 
Riverwood   9,809    1,673    11,482 
Roanoke   2,831    1,535    4,366 
Robinson   2,593    1,470    4,062 
Ross   2,676    1,527    4,203 
Sansa   1,590    822    2,412 
Sedgefield   2,214    1,338    3,552 
Seneca   2,287    1,352    3,639 
Sheezy   2,812    1,072    3,884 
Sherwood   2,449    799    3,248 
Spangler   2,015    1,957    3,973 
Summerglen   1,941    1,110    3,051 
Tansel   3,038    1,492    4,530 
Thomas   1,431    1,005    2,436 
Tomlinson   1,195    1,111    2,306 
Tytus   2,375    1,193    3,568 
Vanzant   2,187    1,621    3,808 
Watson   1,417    806    2,224 
Westhaven   3,692    1,169    4,861 
Wheeler   2,969    955    3,924 
Williamson   3,574    1,313    4,888 
Woodland   2,079    976    3,055 
Woodwind   2,052    1,168    3,220 
Wynde   1,755    1,341    3,097 
Wyndhurst   1,487    1,419    2,906 
Zane   1,249    989    2,237 
                
   $233,270   $127,129   $360,400 

 

27

 

Other Expenses

 

During the period between January 1, 2026 and February 28, 2026, certain series incurred interest expenses. The following table summarizes the total of such expenses incurred by each series. For the avoidance of doubt, the below amounts are unaudited.

 

OTHER EXPENSES
     
Series Name  February 28,
2026		 
Adams  $- 
Antares   - 
Aramis   - 
Arkoma   - 
Arya   75 
Aspen   - 
Athos   - 
Barclay   - 
Bayne   - 
Bean   - 
Bennett   - 
Benny   - 
Bluebell   - 
Bowling   - 
Boxwood   - 
Bradford   - 
Brookwood   - 
Bryant   - 
Caden   69 
Camellia   - 
Caterpillar   109 
Chilhowee   - 
Claremore   - 
Collinison   - 
Cordero   - 
Cristalino   128 
Ellie   96 
Emelina   - 
Ethan   210 
Frances   - 
Glenncrest   - 
Gordon   - 
Haikey   - 
Hamblen   - 
Hancock   - 
Hardman   - 
Haven   71 
Haverhill   - 
Haybridge   - 
Hedgecrest   - 
Helmerich   - 
Hermanos   51 
Holmes   - 

 

28

 

Series Name  February 28,
2026		 
Johnson   - 
Keystone   - 
Langley   - 
Laurel   - 
Layla   - 
Liberty   100 
Lithonia   304 
Lola   - 
Lucas   - 
Macomber   - 
Mallard   - 
Marcy   - 
Meridian   - 
Metallo   - 
Misty   - 
Montgomery   134 
Northbrook   - 
Northridge   - 
Oakland   - 
Palmore   - 
Pebblestone   - 
Perdita   - 
Phoebe   - 
Pongo   - 
Portsmouth   - 
Presidio   - 
Rachel   - 
Ratliff   - 
Riverwood   65 
Roanoke   - 
Robinson   - 
Ross   - 
Sansa   - 
Sedgefield   - 
Seneca   - 
Sheezy   - 
Sherwood   - 
Spangler   - 
Summerglen   - 
Tansel   60 
Thomas   - 
Tomlinson   - 
Tytus   - 
Vanzant   - 
Watson   - 
Westhaven   - 
Wheeler   - 
Williamson   - 
Woodland   - 
Woodwind   - 
Wynde   73 
Wyndhurst   - 
Zane   - 
      
   $1,544 

 

29

 

Cash and Cash Equivalent Balances

 

Cash is held at the series level. The following table summarizes the cash and cash equivalents held by series as of February 28, 2026. For the avoidance of doubt, the below amounts are unaudited.

 

Cash & Cash Equivalents
     
Series Name  February 28, 2026 
Adams  $16,088 
Antares   10,742 
Aramis   7,834 
Arkoma   17,744 
Arya   4,694 
Aspen   8,131 
Athos   7,952 
Barclay   19,897 
Bayne   18,755 
Bean   7,795 
Bennett   8,211 
Benny   5,187 
Bluebell   9,279 
Bowling   7,106 
Boxwood   20,886 
Bradford   20,151 
Brookwood   7,234 
Bryant   8,807 
Caden   4,384 
Camellia   9,026 
Caterpillar   5,835 
Chilhowee   9,823 
Claremore   5,267 
Collinison   13,016 
Cordero   7,466 
Cristalino   8,245 
Ellie   9,547 
Emelina   5,679 
Ethan   6,489 
Frances   13,690 
Glenncrest   12,731 
Gordon   10,231 
Haikey   8,459 
Hamblen   8,969 
Hancock   6,326 
Hardman   13,687 
Haven   6,692 
Haverhill   2,744 
Haybridge   15,927 
Hedgecrest   7,379 
Helmerich   12,293 
Hermanos   7,605 
Holmes   6,596 

 

30

 

Series Name  February 28,
2026		 
Johnson   18,904 
Keystone   9,580 
Langley   9,006 
Laurel   16,073 
Layla   9,239 
Liberty   7,730 
Lithonia   8,076 
Lola   7,541 
Lucas   7,905 
Macomber   8,071 
Mallard   9,540 
Marcy   5,702 
Meridian   4,106 
Metallo   12,424 
Misty   23,550 
Montgomery   7,922 
Northbrook   13,715 
Northridge   9,717 
Oakland   13,186 
Palmore   704 
Pebblestone   8,654 
Perdita   16,498 
Phoebe   12,039 
Pongo   20,793 
Portsmouth   750 
Presidio   6,791 
Rachel   9,800 
Ratliff   8,902 
Riverwood   2,594 
Roanoke   13,960 
Robinson   25,407 
Ross   16,772 
Sansa   10,898 
Sedgefield   24,745 
Seneca   17,725 
Sheezy   5,728 
Sherwood   631 
Spangler   11,811 
Summerglen   6,856 
Tansel   8,296 
Thomas   6,729 
Tomlinson   7,630 
Tytus   15,487 
Vanzant   5,918 
Watson   10,010 
Westhaven   6,940 
Wheeler   16,583 
Williamson   5,683 
Woodland   5,722 
Woodwind   4,174 
Wynde   7,227 
Wyndhurst   17,640 
Zane   4,901 
      
   $971,584 

 

31

 

Item 3. Directors AND Officers

 

General

 

The manager of our Company is Arrived Fund Manager, LLC, a Delaware limited liability company. The manager has established a board of directors for our Company, consisting of two members, Ryan Frazier and Kenneth Cason.

 

The nature of our business to be conducted or promoted by us must at all times be to engage in any lawful act or activity for which LLCs may be organized under the Delaware Limited Liability Company Act.

 

All of our directors and executive officers are employees of the manager. The executive offices of the manager are located at 1700 Westlake Avenue N, Suite 200, Seattle, WA 98109, and the telephone number of the manager’s executive offices is (814) 277-4833.

 

Executive Officers & Directors

 

The following table sets forth certain information with respect to each of the directors and executive officers of the manager:

 

Executive Officer   Age   Position Held with our Company(1) (2)   Position Held with the Manager
Ryan Frazier   37   Chief Executive Officer and Director   Chief Executive Officer, President and Director
Sue Korn   56   Chief Financial Officer   Chief Financial Officer
Kenneth Cason   39   Chief Technology Officer and Director   Chief Technology Officer and Director
Alejandro Chouza   45   Chief Operating Officer   Chief Operating Officer

 

(1)The terms in office of Mr. Frazier, Mr. Cason, and Mr. Chouza began upon the organization of our Company on January 4, 2023. Ms. Korn’s term in office began upon her appointment as CFO on January 11, 2024. The current executive officers and directors will serve in these capacities indefinitely, or until their successors are duly appointed or elected, as applicable.

 

(2)The executive officers of the manager are currently devoting a significant amount of their working time to the operations of our Company to satisfy their respective responsibilities to the management of our Company. Our officers will be working on a part-time basis for our business and are expected to devote at least forty (40) hours per month to the operations and management of our Company.

 

Biographical Information

 

Set forth below is biographical information of our executive officers and directors.

 

Ryan Frazier, our Chief Executive Officer and a director, has served as the Chief Executive Officer, President, and a director of Arrived Holdings, Inc. since its inception in February 2019 and as CEO and director of our Company since its inception. In 2011, Mr. Frazier co-founded and was the CEO of DataRank, Inc., a social media listening platform used by Fortune 500 companies, including Procter & Gamble, Coca Cola, and The Clorox Company, to garner insights from their consumers. Mr. Frazier led DataRank through a merger with Simply Measured, Inc. in 2015, and again through a merger with Sprout Social, Inc. in 2017, after which he acted in the role of General Manager, leading the integration of the Simply Measured, Inc. and Sprout Social businesses in Sprout Social’s Seattle office. Mr. Frazier is an alumnus of Y Combinator, S13, and he graduated from the University of Arkansas in 2010 with a B.S. in International Business.

 

32

 

Sue Korn, our Chief Financial Officer, has served as the Chief Financial Officer of Arrived Holdings since January 2024. Ms. Korn began her career in equity research for diversified financial services companies at Kidder, Peabody in 1992, later moving to investment banking in Salomon Smith Barney’s Financial Institutions Group in 1997. She joined Providian Financial in 1998, where she oversaw planning and analysis, data management and reporting for a $33 billion credit card business. In 2011, she transitioned to FinTech, bringing her financial expertise to companies such as Prosper Marketplace (FP&A and back office operations), LendingClub (marketplace operations and treasury), Oportun (FP&A and accounting) and was co-founder/CFO/Head of Operations for online lender Vouch Financial. Ms. Korn graduated from Colby College with a B.A. in Philosophy/Math in 1991 and earned her M.B.A. from Kellogg Graduate School of Management at Northwestern University in 1997 with majors in Finance, Management and Strategy and Organizational Behavior. She has held the Chartered Financial Analyst® designation since 1998.

 

Kenneth Cason, our Chief Technology Officer and a director, has served as the Chief Technology Officer and director of Arrived Holdings, Inc. since its inception in February 2019. Beginning in 2011, Mr. Cason served as the Co-Founder and Chief Technology Officer of DataRank, Inc. Mr. Cason worked extensively to help design and build large scale data collection, processing, and search systems. He remained employed with DataRank through two mergers; first with Simply Measured, Inc., in 2015, and then again with Sprout Social in 2017. During both mergers, he worked to lead and integrate each company’s tech stack. Mr. Cason is an alumnus of Y Combinator, S13, and he graduated from the University of Arkansas in 2010 with a B.S. in Computer Science and also received Associate degrees in Mathematics, Japanese and Chinese.

 

Alejandro Chouza, our Chief Operating Officer, has served as the Chief Operating Officer of Arrived Holdings, Inc. since its inception in February 2019. Mr. Chouza was previously the VP of Operations of Oyo Rooms beginning in May 2019. Prior to that, Mr. Chouza was the Regional General Manager of Uber Technologies, Inc., from September 2014 through May 2019, where he launched and managed operations in Mexico and the Northwest USA markets. Mr. Chouza graduated with a B.S. from Babson College and an M.B.A. from The Wharton School of the University of Pennsylvania.

 

There are no arrangements or understandings known to us pursuant to which any director was or is to be selected as a director or nominee. There are no agreements or understandings for any executive officer or director to resign at the request of another person and no officer or director is acting on behalf of nor will any of them act at the direction of any other person.

 

There are no family relationships between any director, executive officer, person nominated or chosen to become a director or executive officer or any significant employee.

 

The Manager and the Operating Agreement

 

The manager will be responsible for directing the management of our business and affairs, managing our day-to-day affairs, and implementing our investment strategy. The manager and its officers will not be required to devote all of their time to our business and are only required to devote such time to our affairs as their duties require.

 

The manager will perform its duties and responsibilities pursuant to the operating agreement. The manager will maintain a contractual, as opposed to a fiduciary relationship, with us and our investors. Furthermore, we have agreed to limit the liability of the manager and to indemnify the manager against certain liabilities.

 

The operating agreement further provides that our manager, in exercising its rights in its capacity as the managing member, will be entitled to consider only such interests and factors as it desires, including its own interests, and will have no duty or obligation (fiduciary or otherwise) to give any consideration to any interest of or factors affecting our Company, any series of interests or any of the interest holders and will not be subject to any different standards imposed by the operating agreement, the LLC Act or under any other law, rule or regulation or in equity.  In addition, the operating agreement provides that our manager will not have any duty (including any fiduciary duty) to our Company, any series or any of the interest holders.

  

33

 

Responsibilities of the Manager 

 

The responsibilities of the manager include:

 

  ● Investment Advisory, Origination and Acquisition Services such as approving and overseeing our overall investment strategy, which will consist of elements such as investment selection criteria, diversification strategies and asset disposition strategies;

 

  ● Offering Services such as the development of our series offerings, including the determination of their specific terms;

 

  ● Management Services such as investigating, selecting, and, on our behalf, engaging and conducting business with such persons as the manager deems necessary to the proper performance of its obligations under the operating agreement, including but not limited to consultants, accountants, lenders, technical managers, attorneys, corporate fiduciaries, escrow agents, depositaries, custodians, agents for collection, insurers, insurance agents, developers, construction companies, property managers and any and all persons acting in any other capacity deemed by the manager necessary or desirable for the performance of any of the services under the operating agreement;

 

  ● Accounting and Other Administrative Services such as maintaining accounting data and any other information concerning our activities as will be required to prepare and to file all periodic financial reports and returns required to be filed with the Commission and any other regulatory agency, including annual financial statements, and managing and performing the various administrative functions necessary for our day-to-day operations;

 

  ● Investor Services such as managing communications with our investors, including answering phone calls, preparing and sending written and electronic reports and other communications;

 

  ● Financing Services such as monitoring and overseeing the service of our debt facilities and other financings, if any; and 

 

  ● Disposition Services such as evaluating and approving potential asset dispositions, sales or liquidity transactions.

  

Manager Affiliates

 

Our manager controls nine affiliated entities also conducting offerings under Tier 2 of Regulation A:

 

Arrived Homes, LLC – Arrived Homes, LLC was formed on July 13, 2020 as a Delaware series limited liability company to permit public investment in individual real estate properties that will be owned by individual series of Arrived Homes, LLC.

 

Arrived Homes II, LLC – Arrived Homes II, LLC was formed on February 2, 2022 as a Delaware series limited liability company to permit public investment in individual real estate properties that will be owned by individual series of Arrived Homes II, LLC.

 

Arrived Homes 4, LLC – Arrived Homes 4, LLC was formed on July 28, 2023 as a Delaware series limited liability company to permit public investment in individual real estate properties that will be owned by individual series of Arrived Homes 4, LLC.

 

Arrived Homes 5, LLC – Arrived Homes 5, LLC was formed on July 12, 2024 as a Delaware series limited liability company to permit public investment in individual real estate properties that will be owned by individual series of Arrived Homes 5, LLC. 

 

Arrived STR, LLC – Arrived STR, LLC was formed on July 11, 2022 as a Delaware series limited liability company to permit public investment in individual real estate properties that will be owned by individual series of Arrived STR, LLC.

 

Arrived STR 2, LLC – Arrived STR 2, LLC was formed on January 12, 2023 as a Delaware series limited liability company to permit public investment in individual real estate properties that will be owned by individual series of Arrived STR 2, LLC.

 

Arrived SFR Genesis Fund, LLC – Arrived SFR Genesis Fund, LLC was formed on May 1, 2023 as a Delaware limited liability company to originate, invest in and manage a diversified portfolio of single family residential real estate properties. 

 

Arrived Debt Fund, LLC – Arrived Debt Fund, LLC was formed on December 21, 2023 as a Delaware limited liability company to invest in and manage a diversified portfolio of residential real estate investments.

 

Arrived Seattle Fund, LLC – Arrived Seattle Fund, LLC was formed on February 25, 2025 as a Delaware limited liability company to invest in and manage a diversified portfolio of real estate properties located in the Seattle/Tacoma, Washington area, and real estate credit investments.

 

34

 

Compensation of Executive Officers

 

We do not currently have any employees nor do we currently intend to hire any employees who will be compensated directly by our Company. Each of our executive officers, who are also executive officers of the manager, manages our day-to-day affairs, oversees the review, selection and recommendation of investment opportunities, services acquired properties and monitors the performance of these properties to ensure that they are consistent with our investment objectives. Each of these individuals receives compensation for his or her services, including services performed for us on behalf of the manager, from the manager. We do not intend to pay any compensation to these individuals.

 

Compensation of the Manager

 

The manager will receive compensation and reimbursement for costs incurred relating to our series offerings (e.g., Offering Expenses and Acquisition Expenses). Neither the manager nor any of its affiliates will receive any selling commissions or dealer manager fees in connection with this or other series offerings. See “Management—Management Compensation” in our offering circular and Note 8, Related Party Transactions in our financial statements for further details.

 

Item 4. Security Ownership of Management and Certain Securityholders

 

Our Company is managed by Arrived Fund Manager, LLC, the manager, who will also be the manager of all of our series. The manager currently does not own, and at the closing of each series offering is not expected to own, any of the interests in any series.

 

As of April 20, 2026, no executive officers and directors beneficially own more than 10% of any series of our Company. Additionally, as of April 20, 2026, no other security holders beneficially own more than 10% of any series of our Company.

 

The manager or an affiliate of the manager may purchase interests in any series of our Company on the same terms as offered to investors. No brokerage fee will be paid on any interests purchased by the manager or its affiliates. Additionally, the manager may acquire interests in any series of our Company in the event that a promissory note issued to the manager in connection with the acquisition of a series property, if outstanding, is not repaid on or prior to its maturity date, at which point, the outstanding balance of the promissory note will be converted into series interests under the same terms as in the applicable series offering.

 

The address of Arrived Fund Manager, LLC is 1700 Westlake Avenue N, Suite 200, Seattle, WA 98109.

 

Item 5. INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN Transactions

 

Since our formation in January 2023, we have entered into a number of transactions in which we were a participant and the amount involved exceeded or exceeds the lesser of $120,000 and one percent of the average of our total assets as of the date of formation, and in which any related person had a direct or indirect material interest (other than compensation described under “Compensation of Directors and Executive Officers”). See “The Series Properties Being Offered” section in our latest offering circular, which can be accessed here, for a description of the manager’s involvement in the purchase of properties on the relevant series’ behalf and the subsequent issuance of promissory notes by the series to the manager. See “Management—Management Compensation” section in our offering circular for a description of the fees paid to the manager. We believe the terms obtained or consideration that we paid or received, as applicable, in connection with such transactions were comparable to terms available or the amounts that would be paid or received, as applicable, in arm’s-length transactions. With respect to the additional series that will be offering their interests by way of this offering circular and other future series, their properties will be acquired in accordance with one of the acquisition methods discussed in the section titled “Description of Business-Acquisition Mechanics” in our offering circular. Therefore, the manager is expected to continue to receive interest income from loans to the multiple series.

 

Item 6. Other Information

 

None.

 

35

 

Item 7. Financial Statements

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING FINANCIAL STATEMENTS

DECEMBER 31, 2025 AND 2024

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB ID #3523)   F-2
CONSOLIDATED AND CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2025   F-3
CONSOLIDATED AND CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2024   F-15
CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) FOR THE YEAR ENDED DECEMBER 31, 2025   F-27
CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) FOR THE YEAR ENDED DECEMBER 31, 2024   F-39
CONSOLIDATED AND CONSOLIDATING STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT) FOR THE YEAR ENDED DECEMBER 31, 2025   F-51
CONSOLIDATED AND CONSOLIDATING STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT) FOR THE YEAR ENDED DECEMBER 31, 2024   F-63
CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2025   F-75
CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2024   F-87
NOTES TO CONSOLIDATED AND CONSOLIDATING FINANCIAL STATEMENTS   F-99 to F-123


 

F-1

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Manager and Members of
Arrived Homes 3, LLC

Seattle, Washington

 

Opinion on the Consolidated and Consolidating Financial Statements

 

We have audited the accompanying consolidated and consolidating balance sheets of Arrived Homes 3, LLC and its series (the Company) as of December 31, 2025 and 2024, and the related consolidated and consolidating statements of comprehensive income (loss), changes in members’ equity (deficit), and cash flows for each of the two years in the period ended December 31, 2025, and the related notes (collectively referred to as the consolidated and consolidating financial statements). In our opinion, the consolidated and consolidating financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of their operations and their cash flows for each of the two years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

 

Substantial Doubt About the Company’s Ability to Continue as a Going Concern

 

The accompanying consolidated and consolidating financial statements have been prepared assuming that the Company will continue as a going concern.  As discussed in Note 3 to the consolidated and consolidating financial statements, the Company’s lack of liquidity raises substantial doubt about their ability to continue as a going concern.  Management’s plans in regard to these matters are also described in Note 3. The consolidated and consolidating financial statements do not include any adjustments that might result from the outcome of this uncertainty.  

 

Basis for Opinion

 

These consolidated and consolidating financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated and consolidating financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated and consolidating financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the consolidated and consolidating financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated and consolidating financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated and consolidating financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

/s/ Stephano Slack LLC

 

We have served as the Company’s auditor since 2024.

 

Wayne, Pennsylvania

April 30, 2026

 

F-2

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2025

 

 

   Adams   Antares   Aramis   Arkoma   Arya   Aspen   Athos   Barclay 
ASSETS                                
Current assets:                                
Cash  $17,449   $10,441   $8,460   $18,959   $5,000   $6,987   $7,823   $23,120 
Prepaid expenses   -    104    101    82    -    1,883    101    102 
Due from (to) third party property manager   4,879    1,854    5,633    5,338    2,659    3,848    6,449    14 
Total current assets   22,328    12,400    14,194    24,380    7,659    12,719    14,373    23,236 
Property and equipment, net   298,435    290,881    281,743    221,181    170,599    250,169    276,205    286,843 
Total assets  $320,763   $303,280   $295,936   $245,561   $178,257   $262,888   $290,578   $310,079 
                                         
LIABILITIES AND MEMBERS’ EQUITY                                        
Current liabilities:                                        
Accrued expenses   3,013    1,188    1,545    1,463    1,420    -    5,671    1,219 
Tenant deposits   2,595    -    3,790    3,890    1,350    1,795    4,190    - 
Due to related parties   2,077    7,165    6,063    3,339    3,916    8,158    5,044    6,972 
Total current liabilities   7,685    8,353    11,398    8,692    6,686    9,953    14,905    8,191 
Operational notes, related party   -    -    -    -    6,000    -    -    - 
Total liabilities   7,685    8,353    11,398    8,692    12,686    9,953    14,905    8,191 
Members’ equity                                        
Members’ capital   320,874    305,940    298,278    231,163    189,806    264,964    292,341    293,800 
Retained earnings (accumulated deficit)   (7,796)   (11,012)   (13,740)   5,706    (24,235)   (12,029)   (16,667)   8,088 
Total members’ equity   313,078    294,928    284,538    236,869    165,571    252,935    275,673    301,888 
Total liabilities and members’ equity  $320,763   $303,280   $295,936   $245,561   $178,257   $262,888   $290,578   $310,079 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-3

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2025

 

 

   Bayne   Bean   Bennett   Benny   Bluebell   Bowling   Boxwood   Bradford 
ASSETS                                
Current assets:                                
Cash  $20,693   $9,210   $7,383   $7,499   $9,768   $5,912   $22,179   $21,592 
Prepaid expenses   -    -    196    952    101    769    -    102 
Due from (to) third party property manager   4,836    4,005    3,677    579    3,774    1,799    6,495    4,065 
Total current assets   25,528    13,214    11,257    9,031    13,643    8,480    28,674    25,759 
Property and equipment, net   341,673    277,980    197,882    238,204    280,688    194,134    315,510    285,064 
Total assets  $367,201   $291,195   $209,139   $247,235   $294,331   $202,614   $344,183   $310,823 
                                         
LIABILITIES AND MEMBERS’ EQUITY                                        
Current liabilities:                                        
Accrued expenses   2,882    2,905    1,272    643    1,145    1,236    4,558    1,226 
Tenant deposits   2,745    2,145    1,695    1,795    2,345    -    4,390    2,145 
Due to related parties   2,225    4,179    4,830    9,600    7,953    5,228    2,847    6,854 
Total current liabilities   7,852    9,229    7,797    12,038    11,443    6,464    11,795    10,225 
Operational notes, related party   -    -    -    -    -    -    -    - 
Total liabilities   7,852    9,229    7,797    12,038    11,443    6,464    11,795    10,225 
Members’ equity                                        
Members’ capital   367,815    281,192    195,048    249,301    293,967    190,606    344,325    299,871 
Retained earnings (accumulated deficit)   (8,465)   774    6,293    (14,105)   (11,080)   5,545    (11,937)   727 
Total members’ equity   359,350    281,965    201,342    235,197    282,888    196,151    332,388    300,598 
Total liabilities and members’ equity  $367,201   $291,195   $209,139   $247,235   $294,331   $202,614   $344,183   $310,823 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-4

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2025

 

 

   Brookwood   Bryant   Caden   Camellia   Caterpillar   Chilhowee   Claremore   Collinison 
ASSETS                                
Current assets:                                
Cash  $5,814   $9,087   $5,048   $7,649   $3,475   $11,278   $5,478   $14,600 
Prepaid expenses   257    95    607    258    184    673    79    - 
Due from (to) third party property manager   3,956    3,954    3,795    4,153    2,840    4,291    3,313    4,034 
Total current assets   10,027    13,136    9,450    12,060    6,499    16,243    8,870    18,635 
Property and equipment, net   262,054    264,826    233,169    244,088    281,795    300,764    220,330    291,094 
Total assets  $272,080   $277,962   $242,619   $256,148   $288,294   $317,006   $229,201   $309,728 
                                         
LIABILITIES AND MEMBERS’ EQUITY                                        
Current liabilities:                                        
Accrued expenses   1,248    5,833    1,210    1,173    -    2,315    871    2,966 
Tenant deposits   1,795    2,095    2,393    1,795    1,750    2,395    1,745    2,095 
Due to related parties   6,347    9,508    7,730    7,555    4,092    5,748    8,956    3,807 
Total current liabilities   9,390    17,436    11,333    10,523    5,842    10,459    11,572    8,869 
Operational notes, related party   -    -    5,500    -    10,100    -    -    - 
Total liabilities   9,390    17,436    16,833    10,523    15,942    10,459    11,572    8,869 
Members’ equity                                        
Members’ capital   265,417    270,042    249,527    245,133    318,935    301,917    234,911    300,584 
Retained earnings (accumulated deficit)   (2,726)   (9,516)   (23,741)   493    (46,583)   4,631    (17,282)   275 
Total members’ equity   262,691    260,527    225,786    245,625    272,352    306,548    217,629    300,860 
Total liabilities and members’ equity  $272,080   $277,962   $242,619   $256,148   $288,294   $317,006   $229,201   $309,728 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-5

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2025

 

 

   Cordero   Cristalino   Ellie   Emelina   Ethan   Frances   Glenncrest   Gordon 
ASSETS                                
Current assets:                                
Cash  $8,053   $8,211   $11,100   $5,986   $6,809   $15,231   $14,445   $11,415 
Prepaid expenses   161    384    0.01    261    138    -    -    176 
Due from (to) third party property manager   -    5,618    -    3,608    2,953    4,221    1,213    3,816 
Total current assets   8,214    14,214    11,100    9,856    9,900    19,452    15,658    15,407 
Property and equipment, net   255,950    286,605    272,436    235,505    190,635    265,838    276,045    239,410 
Total assets  $264,164   $300,818   $283,536   $245,360   $200,535   $285,290   $291,702   $254,817 
                                         
LIABILITIES AND MEMBERS’ EQUITY                                        
Current liabilities:                                        
Accrued expenses   3,455    3,413    4,835    1,156    1,343    5,221    1,164    793 
Tenant deposits   -    2,995    -    1,795    1,475    2,245    1,750    1,895 
Due to related parties   4,158    6,789    3,870    9,141    5,808    3,529    6,682    3,675 
Total current liabilities   7,613    13,197    8,704    12,092    8,626    10,995    9,596    6,363 
Operational notes, related party   -    11,800    8,900    -    19,400    -    -    - 
Total liabilities   7,613    24,997    17,604    12,092    28,026    10,995    9,596    6,363 
Members’ equity                                        
Members’ capital   272,759    313,479    299,220    242,587    197,650    265,918    295,426    247,997 
Retained earnings (accumulated deficit)   (16,208)   (37,658)   (33,288)   (9,319)   (25,140)   8,377    (13,319)   458 
Total members’ equity   256,551    275,821    265,931    233,268    172,509    274,295    282,106    248,454 
Total liabilities and members’ equity  $264,164   $300,818   $283,536   $245,360   $200,535   $285,290   $291,702   $254,817 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-6

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2025

 

 

   Haikey   Hamblen   Hancock   Hardman   Haven   Haverhill   Haybridge   Hedgecrest 
ASSETS                                
Current assets:                                
Cash  $8,750   $10,196   $7,279   $15,198   $7,071   $7,384   $17,840   $11,384 
Prepaid expenses   -    635    93    -    882    257    -    - 
Due from (to) third party property manager   4,146    4,767    2,276    4,963    2,906    -    5,076    - 
Total current assets   12,896    15,598    9,647    20,161    10,859    7,641    22,916    11,384 
Property and equipment, net   230,117    239,812    255,442    369,255    172,908    219,271    341,048    346,109 
Total assets  $243,014   $255,410   $265,089   $389,416   $183,768   $226,912   $363,964   $357,493 
                                         
LIABILITIES AND MEMBERS’ EQUITY                                        
Current liabilities:                                        
Accrued expenses   843    3,024    1,425    4,683    1,303    2,473    1,188    5,192 
Tenant deposits   2,295    2,595    2,045    2,495    1,495    1,745    3,990    - 
Due to related parties   7,864    4,304    8,215    4,922    5,814    4,024    7,349    7,627 
Total current liabilities   11,002    9,923    11,685    12,100    8,611    8,241    12,526    12,820 
Operational notes, related party   -    -    -    -    5,700    -    -    - 
Total liabilities   11,002    9,923    11,685    12,100    14,311    8,241    12,526    12,820 
Members’ equity                                        
Members’ capital   237,625    241,930    262,857    373,041    178,703    229,061    364,251    368,517 
Retained earnings (accumulated deficit)   (5,614)   3,558    (9,453)   4,274    (9,247)   (10,391)   (12,813)   (23,843)
Total members’ equity   232,011    245,488    253,404    377,315    169,456    218,670    351,438    344,673 
Total liabilities and members’ equity  $243,014   $255,410   $265,089   $389,416   $183,768   $226,912   $363,964   $357,493 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-7

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2025

 

 

   Helmerich   Hermanos   Holmes   Johnson   Keystone   Langley   Laurel   Layla 
ASSETS                                
Current assets:                                
Cash  $13,100   $8,110   $7,168   $20,851   $11,359   $10,723   $17,601   $10,760 
Prepaid expenses   84    1,320    110    -    -    1,100    -    - 
Due from (to) third party property manager   3,072    4,907    2,980    4,427    1,634    5,432    4,725    4,543 
Total current assets   16,257    14,337    10,258    25,278    12,993    17,254    22,326    15,303 
Property and equipment, net   236,021    294,500    164,508    316,802    331,495    325,393    321,514    308,736 
Total assets  $252,277   $308,836   $174,766   $342,081   $344,488   $342,647   $343,840   $324,040 
                                         
LIABILITIES AND MEMBERS’ EQUITY                                        
Current liabilities:                                        
Accrued expenses   874    3,487    1,322    4,901    3,579    -    2,848    3,326 
Tenant deposits   1,750    3,293    1,600    2,645    2,245    2,995    2,395    2,695 
Due to related parties   6,889    7,903    5,498    3,069    4,540    2,302    3,478    4,427 
Total current liabilities   9,514    14,682    8,420    10,615    10,364    5,297    8,721    10,448 
Operational notes, related party   -    4,700    -    -    -    -    -    - 
Total liabilities   9,514    19,382    8,420    10,615    10,364    5,297    8,721    10,448 
Members’ equity                                        
Members’ capital   245,285    309,002    168,685    332,204    338,004    347,200    339,661    314,875 
Retained earnings (accumulated deficit)   (2,521)   (19,548)   (2,339)   (739)   (3,880)   (9,850)   (4,542)   (1,284)
Total members’ equity   242,764    289,454    166,346    331,466    334,124    337,350    335,118    313,591 
Total liabilities and members’ equity  $252,277   $308,836   $174,766   $342,081   $344,488   $342,647   $343,840   $324,040 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-8

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2025

 

 

   Liberty   Lithonia   Lola   Lucas   Macomber   Mallard   Marcy   Meridian 
ASSETS                                
Current assets:                                
Cash  $7,694   $5,603   $8,921   $8,321   $8,254   $10,438   $6,595   $3,298 
Prepaid expenses   86    260    -    87    94    123    -    181 
Due from (to) third party property manager   4,290    6,310    4,099    3,942    4,868    2,907    4,149    3,856 
Total current assets   12,071    12,174    13,020    12,351    13,216    13,467    10,744    7,336 
Property and equipment, net   248,115    271,416    292,217    242,175    260,834    195,079    170,599    253,152 
Total assets  $260,186   $283,590   $305,237   $254,525   $274,050   $208,546   $181,342   $260,488 
                                         
LIABILITIES AND MEMBERS’ EQUITY                                        
Current liabilities:                                        
Accrued expenses   5,240    578    3,026    6,046    5,754    1,227    1,383    1,089 
Tenant deposits   2,395    3,990    2,345    2,395    2,695    1,495    2,690    1,850 
Due to related parties   5,377    6,669    4,125    3,614    7,417    4,562    2,429    6,089 
Total current liabilities   13,011    11,237    9,496    12,055    15,866    7,284    6,501    9,029 
Operational notes, related party   8,000    24,300    -    -    -    -    -    - 
Total liabilities   21,011    35,537    9,496    12,055    15,866    7,284    6,501    9,029 
Members’ equity                                        
Members’ capital   252,617    288,794    291,983    258,837    272,658    202,315    178,926    264,319 
Retained earnings (accumulated deficit)   (13,442)   (40,740)   3,757    (16,367)   (14,474)   (1,052)   (4,085)   (12,860)
Total members’ equity   239,175    248,053    295,741    242,471    258,184    201,263    174,841    251,459 
Total liabilities and members’ equity  $260,186   $283,590   $305,237   $254,525   $274,050   $208,546   $181,342   $260,488 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-9

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2025

 

 

   Metallo   Misty   Montgomery   Northbrook   Northridge   Oakland   Palmore   Pebblestone 
ASSETS                                
Current assets:                                
Cash  $13,131   $24,756   $8,198   $14,424   $9,949   $14,331   $704   $10,154 
Prepaid expenses   -    -    129    -    -    0    2,688    - 
Due from (to) third party property manager   3,695    7,780    4,029    3,587    3,590    4,543    -    4,970 
Total current assets   16,826    32,536    12,357    18,011    13,539    18,873    3,391    15,125 
Property and equipment, net   287,835    336,547    200,437    268,450    248,360    292,018    190,941    321,615 
Total assets  $304,661   $369,082   $212,794   $286,460   $261,900   $310,891   $194,332   $336,739 
                                         
LIABILITIES AND MEMBERS’ EQUITY                                        
Current liabilities:                                        
Accrued expenses   4,368    1,302    1,289    5,751    1,516    3,258    6,727    3,622 
Tenant deposits   1,995    5,190    2,468    1,895    1,650    2,445    -    2,795 
Due to related parties   1,912    8,175    5,836    3,619    3,354    3,028    6,784    4,264 
Total current liabilities   8,275    14,667    9,593    11,265    6,520    8,731    13,511    10,682 
Operational notes, related party   -    -    10,700    -    -    -    -    - 
Total liabilities   8,275    14,667    20,293    11,265    6,520    8,731    13,511    10,682 
Members’ equity                                        
Members’ capital   318,286    358,043    211,003    281,694    277,020    309,394    201,484    322,951 
Retained earnings (accumulated deficit)   (21,901)   (3,628)   (18,502)   (6,499)   (21,640)   (7,233)   (20,662)   3,107 
Total members’ equity   296,385    354,415    192,501    275,195    255,380    302,160    180,821    326,058 
Total liabilities and members’ equity  $304,661   $369,082   $212,794   $286,460   $261,900   $310,891   $194,332   $336,739 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-10

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2025

 

 

   Perdita   Phoebe   Pongo   Portsmouth   Presidio   Rachel   Ratliff   Riverwood 
ASSETS                                
Current assets:                                
Cash  $17,167   $13,273   $21,033   $2,270   $7,747   $11,023   $10,698   $4,342 
Prepaid expenses   110    -    110    134    -    -    -    98 
Due from (to) third party property manager   4,053    4,245    -    -    3,397    4,086    4,616    - 
Total current assets   21,330    17,518    21,143    2,404    11,144    15,109    15,314    4,440 
Property and equipment, net   310,866    264,391    310,866    204,378    234,750    275,368    303,936    274,950 
Total assets  $332,197   $281,909   $332,009   $206,782   $245,893   $290,477   $319,250   $279,390 
                                         
LIABILITIES AND MEMBERS’ EQUITY                                        
Current liabilities:                                        
Accrued expenses   1,176    3,041    1,415    2,514    3,701    2,250    2,061    1,334 
Tenant deposits   2,095    2,145    -    1,495    1,745    1,995    2,345    - 
Due to related parties   7,409    2,855    7,529    5,033    1,520    3,643    4,348    3,888 
Total current liabilities   10,680    8,041    8,944    9,041    6,966    7,888    8,754    5,222 
Operational notes, related party   -    -    -    -    -    -    -    6,000 
Total liabilities   10,680    8,041    8,944    9,041    6,966    7,888    8,754    11,222 
Members’ equity                                        
Members’ capital   330,804    279,385    330,070    211,719    260,529    285,353    312,559    301,786 
Retained earnings (accumulated deficit)   (9,287)   (5,516)   (7,005)   (13,978)   (21,601)   (2,764)   (2,064)   (33,618)
Total members’ equity   321,517    273,869    323,065    197,741    238,927    282,589    310,495    268,168 
Total liabilities and members’ equity  $332,197   $281,909   $332,009   $206,782   $245,893   $290,477   $319,250   $279,390 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-11

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2025

 

 

   Roanoke   Robinson   Ross   Sansa   Sedgefield   Seneca   Sheezy   Sherwood 
ASSETS                                
Current assets:                                
Cash  $15,280   $26,868   $18,303   $11,946   $26,098   $18,665   $7,284   $631 
Prepaid expenses   1,280    -    -    -    -    -    181    64 
Due from (to) third party property manager   5,222    5,100    5,031    2,895    5,173    4,536    3,213    444 
Total current assets   21,781    31,969    23,333    14,841    31,271    23,201    10,677    1,139 
Property and equipment, net   314,574    313,956    317,692    170,599    282,423    287,404    216,331    163,473 
Total assets  $336,354   $345,925   $341,026   $185,439   $313,695   $310,605   $227,009   $164,612 
                                         
LIABILITIES AND MEMBERS’ EQUITY                                        
Current liabilities:                                        
Accrued expenses   -    4,774    3,103    3,289    1,167    1,128    3,790    1,321 
Tenant deposits   2,495    2,595    2,545    1,395    3,243    2,695    2,045    1,445 
Due to related parties   4,795    2,544    4,241    2,438    2,806    2,531    4,123    5,967 
Total current liabilities   7,290    9,914    9,889    7,121    7,216    6,354    9,958    8,733 
Operational notes, related party   -    -    -    -    -    -    -    - 
Total liabilities   7,290    9,914    9,889    7,121    7,216    6,354    9,958    8,733 
Members’ equity                                        
Members’ capital   321,449    336,500    322,030    176,353    314,644    308,043    212,200    178,732 
Retained earnings (accumulated deficit)   7,616    (489)   9,107    1,965    (8,165)   (3,793)   4,851    (22,852)
Total members’ equity   329,065    336,011    331,137    178,318    306,479    304,250    217,050    155,880 
Total liabilities and members’ equity  $336,354   $345,925   $341,026   $185,439   $313,695   $310,605   $227,009   $164,612 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-12

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2025

 

 

   Spangler   Summerglen   Tansel   Thomas   Tomlinson   Tytus   Vanzant   Watson 
ASSETS                                
Current assets:                                
Cash  $13,075   $7,409   $8,065   $5,351   $8,009   $16,773   $6,993   $10,942 
Prepaid expenses   -    149    110    203    -    89    -    110 
Due from (to) third party property manager   5,047    3,364    4,562    3,614    3,980    4,439    4,781    2,899 
Total current assets   18,122    10,922    12,737    9,169    11,989    21,301    11,774    13,951 
Property and equipment, net   378,344    226,467    305,092    205,013    237,836    243,975    337,528    164,508 
Total assets  $396,466   $237,389   $317,828   $214,182   $249,825   $265,276   $349,302   $178,459 
                                         
LIABILITIES AND MEMBERS’ EQUITY                                        
Current liabilities:                                        
Accrued expenses   1,318    910    618    1,300    1,430    5,049    2,365    1,322 
Tenant deposits   2,995    1,795    2,295    1,695    2,250    2,495    2,695    1,600 
Due to related parties   2,418    7,049    4,521    7,791    5,986    3,710    4,479    2,901 
Total current liabilities   6,731    9,754    7,435    10,786    9,666    11,254    9,539    5,823 
Operational notes, related party   -    -    5,500    -    -    -    -    - 
Total liabilities   6,731    9,754    12,935    10,786    9,666    11,254    9,539    5,823 
Members’ equity                                        
Members’ capital   414,428    227,477    329,270    207,558    269,956    247,401    347,110    171,913 
Retained earnings (accumulated deficit)   (24,692)   157    (24,376)   (4,162)   (29,797)   6,621    (7,348)   724 
Total members’ equity   389,735    227,635    304,894    203,397    240,159    254,022    339,763    172,636 
Total liabilities and members’ equity  $396,466   $237,389   $317,828   $214,182   $249,825   $265,276   $349,302   $178,459 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-13

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2025

 

 

   Westhaven   Wheeler   Williamson   Woodland   Woodwind   Wynde   Wyndhurst   Zane   Consolidated 
ASSETS                                    
Current assets:                                    
Cash  $7,364   $16,527   $6,845   $5,923   $3,710   $7,666   $18,563   $12,979   $1,054,521 
Prepaid expenses   158    129    174    84    234    86    -    60    19,459 
Due from (to) third party property manager   3,904    57    688    1,094    3,114    4,086    3,061    -    334,841 
Total current assets   11,425    16,713    7,707    7,101    7,058    11,839    21,624    13,040    1,408,820 
Property and equipment, net   238,563    194,770    269,239    153,685    238,285    237,228    295,149    160,247    25,012,345 
Total assets  $249,989   $211,483   $276,945   $160,786   $245,343   $249,067   $316,774   $173,286   $26,421,165 
                                              
LIABILITIES AND MEMBERS’ EQUITY                                             
Current liabilities:                                             
Accrued expenses   1,982    1,236    1,215    1,284    1,283    1,135    1,352    6,037   $226,926 
Tenant deposits   2,145    -    1,850    1,295    1,595    2,395    1,745    1,275    198,055 
Due to related parties   8,068    5,050    3,939    5,280    9,100    7,413    5,999    3,690    502,389 
Total current liabilities   12,195    6,285    7,004    7,860    11,977    10,943    9,096    11,002    927,370 
Operational notes, related party   -    -    -    -    -    5,800    -    -    132,400 
Total liabilities   12,195    6,285    7,004    7,860    11,977    16,743    9,096    11,002    1,059,770 
Members’ equity                                             
Members’ capital   246,794    192,821    279,866    160,193    249,152    247,769    316,503    159,440    26,231,825 
Retained earnings (accumulated deficit)   (9,000)   12,376    (9,925)   (7,266)   (15,786)   (15,444)   (8,825)   2,844    (870,430)
Total members’ equity   237,794    205,198    269,941    152,927    233,366    232,325    307,677    162,284    25,361,395 
Total liabilities and members’ equity  $249,989   $211,483   $276,945   $160,786   $245,343   $249,067   $316,774   $173,286   $26,421,165 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-14

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2024

 

 

   Adams   Antares   Aramis   Arkoma   Arya   Aspen   Athos   Barclay 
ASSETS                                
Current assets:                                
Cash  $-   $12,203   $7,204   $23,313   $2,277   $3,249   $9,313   $24,025 
Prepaid expenses   -    499    551    438    277    633    1,623    465 
Due from related parties   -    -    -    -    -    -    -    - 
Due from (to) third party property manager   548    4,379    5,453    2,770    2,766    3,778    3,173    1,925 
Total current assets   548    17,082    13,209    26,522    5,320    7,660    14,110    26,415 
Property and equipment, net   306,829    299,395    289,989    227,671    175,531    257,527    285,361    295,259 
Total assets  $307,377   $316,476   $303,197   $254,193   $180,851   $265,187   $299,471   $321,674 
                                         
LIABILITIES AND MEMBERS’ EQUITY (DEFICIT)                                        
Current liabilities:                                        
Accrued expenses   4,871    3,092    2,964    3,796    2,375    2,399    8,074    3,518 
Tenant deposits   2,345    2,395    3,790    1,595    1,395    1,795    4,190    - 
Bridge financing, related party   288,000    -    -    -    -    -    -    - 
Due to related party   20,263    2,341    2,437    1,893    6,278    4,610    1,505    2,453 
Total current liabilities   315,479    7,828    9,191    7,284    10,048    8,804    13,770    5,971 
Operational notes, related party   -    -    -    -    -    -    -    - 
Total liabilities   315,479    7,828    9,191    7,284    10,048    8,804    13,770    5,971 
Members’ equity (deficit)                                        
Members’ capital   3,000    321,862    312,136    243,635    195,041    276,262    304,467    311,399 
Retained earnings (accumulated deficit)   (11,102)   (13,214)   (18,129)   3,274    (24,237)   (19,879)   (18,766)   4,304 
Total members’ equity (deficit)   (8,102)   308,648    294,006    246,908    170,803    256,383    285,701    315,703 
Total liabilities and members’ equity  $307,377   $316,476   $303,197   $254,193   $180,851   $265,187   $299,471   $321,674 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-15

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2024

 

 

   Bayne   Bean   Bennett   Benny   Bluebell   Bowling   Boxwood   Bradford 
ASSETS                                
Current assets:                                
Cash  $-   $11,429   $7,455   $3,024   $19,029   $5,720   $-   $22,583 
Prepaid expenses   -    450    507    1,892    541    1,116    -    458 
Due from related parties   -    -    -    -    -    -    -    - 
Due from (to) third party property manager   -    4,206    3,192    3,586    4,258    2,016    -    3,929 
Total current assets   -    16,085    11,154    8,503    23,828    8,851    -    26,970 
Property and equipment, net   351,287    286,038    203,702    245,210    288,903    199,858    324,350    293,425 
Total assets  $351,287   $302,123   $214,856   $253,713   $312,731   $208,709   $324,350   $320,395 
                                         
LIABILITIES AND MEMBERS’ EQUITY (DEFICIT)                                        
Current liabilities:                                        
Accrued expenses   4,831    5,100    3,050    2,432    2,938    2,808    5,161    3,288 
Tenant deposits   -    2,145    1,695    1,795    2,345    -    -    2,145 
Bridge financing, related party   328,683    -    -    -    -    -    308,000    - 
Due to related party   25,894    2,425    1,666    2,796    2,449    2,159    16,646    2,285 
Total current liabilities   359,409    9,670    6,410    7,023    7,732    4,967    329,807    7,718 
Operational notes, related party   -    -    -    -    -    -    -    - 
Total liabilities   359,409    9,670    6,410    7,023    7,732    4,967    329,807    7,718 
Members’ equity (deficit)                                        
Members’ capital   -    298,518    208,908    259,416    305,649    203,219    -    316,782 
Retained earnings (accumulated deficit)   (8,122)   (6,065)   (463)   (12,727)   (650)   524    (5,457)   (4,105)
Total members’ equity (deficit)   (8,122)   292,453    208,445    246,690    304,999    203,742    (5,457)   312,677 
Total liabilities and members’ equity  $351,287   $302,123   $214,856   $253,713   $312,731   $208,709   $324,350   $320,395 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-16

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2024

 

 

   Brookwood   Bryant   Caden   Camellia   Caterpillar   Chilhowee   Claremore   Collinison 
ASSETS                                
Current assets:                                
Cash  $6,608   $8,432   $1,152   $5,838   $11,778   $12,661   $-   $24,688 
Prepaid expenses   591    1,347    1,013    667    1,772    1,185    790    414 
Due from related parties   -    -    -    -    -    -    -    - 
Due from (to) third party property manager   3,849    4,300    1,370    4,258    3,624    2,355    2,097    558 
Total current assets   11,047    14,079    3,535    10,764    17,174    16,200    2,887    25,660 
Property and equipment, net   269,761    273,609    240,044    253,710    290,043    309,705    226,795    295,285 
Total assets  $280,808   $287,689   $243,580   $264,474   $307,216   $325,905   $229,682   $320,945 
                                         
LIABILITIES AND MEMBERS’ EQUITY (DEFICIT)                                        
Current liabilities:                                        
Accrued expenses   2,668    8,257    1,533    2,720    2,251    3,821    2,780    4,542 
Tenant deposits   1,795    2,095    2,393    1,795    1,795    2,395    1,745    2,095 
Bridge financing, related party   -    -    -    -    -    -    -    - 
Due to related party   4,262    2,300    1,969    2,525    2,322    3,595    2,138    1,694 
Total current liabilities   8,725    12,652    5,895    7,039    6,368    9,811    6,663    8,330 
Operational notes, related party   -    -    5,500    -    -    -    -    - 
Total liabilities   8,725    12,652    11,395    7,039    6,368    9,811    6,663    8,330 
Members’ equity (deficit)                                        
Members’ capital   278,625    282,322    256,781    259,274    322,402    319,764    243,056    315,642 
Retained earnings (accumulated deficit)   (6,542)   (7,286)   (24,596)   (1,840)   (21,554)   (3,670)   (20,037)   (3,027)
Total members’ equity (deficit)   272,083    275,037    232,185    257,434    300,848    316,094    223,019    312,615 
Total liabilities and members’ equity  $280,808   $287,689   $243,580   $264,474   $307,216   $325,905   $229,682   $320,945 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-17

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2024

 

 

   Cordero   Cristalino   Ellie   Emelina   Ethan   Frances   Glenncrest   Gordon 
ASSETS                                
Current assets:                                        
Cash  $14,543   $6,894   $4,683   $3,176   $3,281   $19,302   $18,053   $14,335 
Prepaid expenses   501    944    482    687    483    376    418    552 
Due from related parties   -    -    -    -    -    -    -    - 
Due from (to) third party property manager   4,390    5,553    2,092    3,878    2,378    4,154    5,781    3,815 
Total current assets   19,434    13,391    7,257    7,741    6,142    23,833    24,252    18,702 
Property and equipment, net   263,670    295,055    280,333    243,748    198,929    273,512    284,027    246,434 
Total assets  $283,104   $308,446   $287,590   $251,488   $205,071   $297,345   $308,279   $265,137 
                                         
LIABILITIES AND MEMBERS’ EQUITY (DEFICIT)                                        
Current liabilities:                                        
Accrued expenses   4,368    4,984    2,001    2,506    2,463    4,901    3,437    2,949 
Tenant deposits   2,495    2,995    2,445    2,195    1,475    2,245    3,990    1,895 
Bridge financing, related party   -    -    -    -    -    -    -    - 
Due to related party   2,616    3,480    2,467    4,744    2,320    1,851    100    2,076 
Total current liabilities   9,479    11,459    6,913    9,445    6,259    8,997    7,527    6,920 
Operational notes, related party   -    16,800    -    -    13,000    -    -    - 
Total liabilities   9,479    28,259    6,913    9,445    19,259    8,997    7,527    6,920 
Members’ equity (deficit)                                        
Members’ capital   281,147    326,259    302,667    249,907    204,516    286,202    305,441    264,497 
Retained earnings (accumulated deficit)   (7,522)   (46,071)   (21,990)   (7,864)   (18,704)   2,146    (4,690)   (6,280)
Total members’ equity (deficit)   273,626    280,188    280,678    242,043    185,812    288,348    300,751    258,217 
Total liabilities and members’ equity  $283,104   $308,446   $287,590   $251,488   $205,071   $297,345   $308,279   $265,137 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-18

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2024

 

 

   Haikey   Hamblen   Hancock   Hardman   Haven   Haverhill   Haybridge   Hedgecrest 
ASSETS                                
Current assets:                                        
Cash  $10,753   $13,581   $7,665   $18,728   $2,123   $6,658   $18,262   $16,561 
Prepaid expenses   738    1,038    570    406    1,197    642    394    394 
Due from related parties   -    -    -    -    -    -    -    - 
Due from (to) third party property manager   3,511    4,184    4,837    5,009    2,910    1,885    3,814    3,920 
Total current assets   15,002    18,803    13,071    24,143    6,230    9,185    22,471    20,875 
Property and equipment, net   236,852    246,865    263,896    379,906    178,006    225,720    350,910    350,910 
Total assets  $251,854   $265,668   $276,967   $404,049   $184,236   $234,905   $373,380   $371,785 
                                         
LIABILITIES AND MEMBERS’ EQUITY (DEFICIT)                                        
Current liabilities:                                        
Accrued expenses   2,647    5,338    3,565    6,713    2,388    1,518    1,280    2,928 
Tenant deposits   1,795    2,095    2,045    2,495    1,495    1,745    -    1,995 
Bridge financing, related party   -    -    -    -    -    -    -    - 
Due to related party   2,129    2,581    6,373    2,584    7,690    2,501    2,559    2,339 
Total current liabilities   6,572    10,014    11,982    11,792    11,573    5,764    3,840    7,262 
Operational notes, related party   -    -    -    -    -    -    -    - 
Total liabilities   6,572    10,014    11,982    11,792    11,573    5,764    3,840    7,262 
Members’ equity (deficit)                                        
Members’ capital   246,803    255,098    275,072    393,337    187,557    240,619    377,092    378,190 
Retained earnings (accumulated deficit)   (1,521)   556    (10,087)   (1,080)   (14,893)   (11,477)   (7,552)   (13,668)
Total members’ equity (deficit)   245,282    255,655    264,985    392,257    172,663    229,141    369,541    364,523 
Total liabilities and members’ equity  $251,854   $265,668   $276,967   $404,049   $184,236   $234,905   $373,380   $371,785 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-19

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2024

 

 

   Helmerich   Hermanos   Holmes   Johnson   Keystone   Langley   Laurel   Layla 
ASSETS                                
Current assets:                                
Cash  $15,946   $6,549   $12,837   $23,239   $16,296   $-   $24,838   $14,604 
Prepaid expenses   791    1,784    385    -    539    -    482    506 
Due from related parties   -    -    -    -    -    -    -    - 
Due from (to) third party property manager   3,503    4,808    2,743    4,864    2,913    869    4,708    4,856 
Total current assets   20,240    13,141    15,965    28,103    19,748    869    30,028    19,966 
Property and equipment, net   242,946    306,328    169,346    325,823    341,063    334,512    330,775    317,642 
Total assets  $263,186   $319,468   $185,311   $353,926   $360,811   $335,380   $360,803   $337,608 
                                         
LIABILITIES AND MEMBERS’ EQUITY (DEFICIT)                                        
Current liabilities:                                        
Accrued expenses   3,168    4,584    3,102    5,609    6,396    5,524    5,854    5,282 
Tenant deposits   2,095    3,293    1,395    2,645    2,295    2,995    2,295    2,695 
Bridge financing, related party   -    -    -    -    -    318,000    -    - 
Due to related party   2,138    11,685    1,846    971    2,308    18,665    1,427    2,485 
Total current liabilities   7,402    19,561    6,343    9,224    10,999    345,185    9,576    10,462 
Operational notes, related party   -    -    -    -    -    -    -    - 
Total liabilities   7,402    19,561    6,343    9,224    10,999    345,185    9,576    10,462 
Members’ equity (deficit)                                        
Members’ capital   255,965    321,198    176,217    352,751    353,031    3,644    358,598    334,437 
Retained earnings (accumulated deficit)   (181)   (21,291)   2,751    (8,050)   (3,219)   (13,448)   (7,371)   (7,291)
Total members’ equity (deficit)   255,784    299,907    178,968    344,701    349,812    (9,804)   351,227    327,146 
Total liabilities and members’ equity  $263,186   $319,468   $185,311   $353,926   $360,811   $335,380   $360,803   $337,608 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-20

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2024

 

 

   Liberty   Lithonia   Lola   Lucas   Macomber   Mallard   Marcy   Meridian 
ASSETS                                
Current assets:                                
Cash  $4,897   $6,926   $20,051   $15,168   $10,353   $11,162   $10,940   $4,306 
Prepaid expenses   1,186    674    415    1,379    1,464    477    277    674 
Due from related parties   -    -    -    -    -    -    -    - 
Due from (to) third party property manager   4,319    6,186    4,388    1,662    4,507    3,921    4,156    3,602 
Total current assets   10,402    13,786    24,854    18,209    16,324    15,560    15,373    8,581 
Property and equipment, net   259,206    281,343    295,617    250,315    269,405    200,803    175,531    262,135 
Total assets  $269,608   $295,129   $320,471   $268,524   $285,729   $216,363   $190,904   $270,716 
                                         
LIABILITIES AND MEMBERS’ EQUITY (DEFICIT)                                        
Current liabilities:                                        
Accrued expenses   6,111    2,379    4,945    7,547    8,153    3,100    3,166    3,127 
Tenant deposits   2,395    3,990    2,345    -    2,445    2,195    2,690    1,850 
Bridge financing, related party   -    -    -    -    -    -    -    - 
Due to related party   1,913    3,000    2,307    2,100    1,519    1,544    1,335    2,146 
Total current liabilities   10,420    9,369    9,598    9,647    12,118    6,839    7,192    7,123 
Operational notes, related party   8,000    24,300    -    -    -    -    -    - 
Total liabilities   18,420    33,669    9,598    9,647    12,118    6,839    7,192    7,123 
Members’ equity (deficit)                                        
Members’ capital   263,232    298,733    311,569    266,178    285,515    210,878    191,853    274,857 
Retained earnings (accumulated deficit)   (12,043)   (37,273)   (696)   (7,301)   (11,903)   (1,354)   (8,141)   (11,264)
Total members’ equity (deficit)   251,189    261,460    310,873    258,877    273,612    209,524    183,713    263,593 
Total liabilities and members’ equity  $269,608   $295,129   $320,471   $268,524   $285,729   $216,363   $190,904   $270,716 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-21

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2024

 

 

   Metallo   Misty   Montgomery   Northbrook   Northridge   Oakland   Palmore   Pebblestone 
ASSETS                                
Current assets:                                
Cash  $-   $25,490   $4,362   $16,387   $19,278   $18,656   $4,155   $14,763 
Prepaid expenses   -    -    489    376    390    439    1,520    539 
Due from related parties   -    -    -    -    -    -    -    - 
Due from (to) third party property manager   -    5,493    3,557    4,005    2,002    4,273    1,545    4,926 
Total current assets   -    30,983    8,408    20,768    21,671    23,367    7,220    20,228 
Property and equipment, net   295,182    345,992    208,784    276,193    255,431    300,462    197,852    330,898 
Total assets  $295,182   $376,975   $217,192   $296,961   $277,101   $323,829   $205,072   $351,127 
                                         
LIABILITIES AND MEMBERS’ EQUITY (DEFICIT)                                        
Current liabilities:                                        
Accrued expenses   7,777    1,884    2,263    6,945    2,928    4,847    2,654    6,424 
Tenant deposits   -    5,190    2,468    1,895    2,543    2,445    1,645    2,795 
Bridge financing, related party   284,000    -    -    -    -    -    -    - 
Due to related party   9,429    1,539    2,264    1,855    1,479    1,136    3,743    2,246 
Total current liabilities   301,205    8,612    6,995    10,695    6,950    8,428    8,042    11,465 
Operational notes, related party   -    -    10,700    -    -    -    -    - 
Total liabilities   301,205    8,612    17,695    10,695    6,950    8,428    8,042    11,465 
Members’ equity (deficit)                                        
Members’ capital   1,657    378,527    219,798    295,899    283,217    329,278    205,736    342,191 
Retained earnings (accumulated deficit)   (7,680)   (10,164)   (20,300)   (9,633)   (13,066)   (13,877)   (8,706)   (2,529)
Total members’ equity (deficit)   (6,023)   368,363    199,498    286,266    270,152    315,401    197,030    339,662 
Total liabilities and members’ equity  $295,182   $376,975   $217,192   $296,961   $277,101   $323,829   $205,072   $351,127 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-22

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2024

 

 

   Perdita   Phoebe   Pongo   Portsmouth   Presidio   Rachel   Ratliff   Riverwood 
ASSETS                                
Current assets:                                
Cash  $20,002   $17,909   $22,874   $8,984   $-   $17,393   $14,030   $7,240 
Prepaid expenses   516    414    516    454    -    414    415    552 
Due from related parties   -    -    -    -    -    -    -    - 
Due from (to) third party property manager   3,920    4,008    5,168    4,386    -    4,663    4,329    4,253 
Total current assets   24,438    22,331    28,557    13,824    -    22,469    18,774    12,046 
Property and equipment, net   319,987    272,028    319,987    205,252    241,325    283,311    312,724    284,990 
Total assets  $344,425   $294,359   $348,545   $219,076   $241,325   $305,781   $331,498   $297,036 
                                         
LIABILITIES AND MEMBERS’ EQUITY (DEFICIT)                                        
Current liabilities:                                        
Accrued expenses   3,322    5,516    3,438    3,688    6,735    4,777    4,750    2,887 
Tenant deposits   1,995    2,145    3,143    2,693    -    3,093    2,345    1,995 
Bridge financing, related party   -    -    -    -    229,000    -    -    - 
Due to related party   2,467    1,119    2,485    2,384    21,709    1,899    2,433    2,243 
Total current liabilities   7,784    8,780    9,065    8,764    257,445    9,769    9,529    7,125 
Operational notes, related party   -    -    -    -    -    -    -    - 
Total liabilities   7,784    8,780    9,065    8,764    257,445    9,769    9,529    7,125 
Members’ equity (deficit)                                        
Members’ capital   342,491    297,169    341,277    215,255    -    302,229    331,424    309,475 
Retained earnings (accumulated deficit)   (5,849)   (11,590)   (1,798)   (4,943)   (16,120)   (6,217)   (9,455)   (19,564)
Total members’ equity (deficit)   336,641    285,579    339,479    210,312    (16,120)   296,012    321,970    289,911 
Total liabilities and members’ equity  $344,425   $294,359   $348,545   $219,076   $241,325   $305,781   $331,498   $297,036 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-23

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2024

 

 

   Roanoke   Robinson   Ross   Sansa   Sedgefield   Seneca   Sheezy   Sherwood 
ASSETS                                
Current assets:                                
Cash  $22,621   $24,787   $23,357   $13,296   $23,488   $23,414   $14,858   $8,977 
Prepaid expenses   636    -    527    277    418    -    531    340 
Due from related parties   -    3,128    -    -    6,955    2    -    - 
Due from (to) third party property manager   1,788    4,012    4,828    2,764    3,123    3,692    3,690    2,742 
Total current assets   25,046    31,928    28,711    16,337    33,983    27,107    19,079    12,059 
Property and equipment, net   323,781    322,775    326,857    175,531    290,451    295,518    222,762    168,270 
Total assets  $348,826   $354,702   $355,568   $191,868   $324,434   $322,626   $241,841   $180,328 
                                         
LIABILITIES AND MEMBERS’ EQUITY (DEFICIT)                                        
Current liabilities:                                        
Accrued expenses   3,343    4,094    5,694    2,901    3,242    3,770    5,515    3,034 
Tenant deposits   2,495    2,345    2,545    1,395    3,243    2,695    2,045    1,395 
Bridge financing, related party   -    -    -    -    -    -    -    - 
Due to related party   2,569    -    2,230    1,343    -    -    2,583    1,396 
Total current liabilities   8,407    6,439    10,469    5,639    6,485    6,465    10,143    5,824 
Operational notes, related party   -    -    -    -    -    -    -    - 
Total liabilities   8,407    6,439    10,469    5,639    6,485    6,465    10,143    5,824 
Members’ equity (deficit)                                        
Members’ capital   341,678    356,490    344,040    189,071    332,900    324,515    226,607    186,239 
Retained earnings (accumulated deficit)   (1,259)   (8,226)   1,059    (2,842)   (14,952)   (8,355)   5,091    (11,736)
Total members’ equity (deficit)   340,419    348,264    345,099    186,229    317,949    316,161    231,698    174,504 
Total liabilities and members’ equity  $348,826   $354,702   $355,568   $191,868   $324,434   $322,626   $241,841   $180,328 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-24

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2024

 

 

   Spangler   Summerglen   Tansel   Thomas   Tomlinson   Tytus   Vanzant   Watson 
ASSETS                                
Current assets:                                
Cash  $-   $6,370   $6,633   $9,480   $-   $19,226   $15,649   $14,142 
Prepaid expenses   -    820    1,080    489    -    437    357    385 
Due from related parties   -    -    -    -    -    -    -    - 
Due from (to) third party property manager   -    3,211    4,676    3,789    -    4,281    4,847    2,739 
Total current assets   -    10,402    12,389    13,757    -    23,945    20,853    17,266 
Property and equipment, net   390,088    233,128    314,043    211,043    244,500    251,134    347,252    169,346 
Total assets  $390,088   $243,529   $326,432   $224,800   $244,500   $275,078   $368,104   $186,612 
                                         
LIABILITIES AND MEMBERS’ EQUITY (DEFICIT)                                        
Current liabilities:                                        
Accrued expenses   15,631    2,837    2,941    2,785    4,523    6,810    5,775    3,083 
Tenant deposits   -    1,795    2,395    1,795    -    2,495    2,695    1,395 
Bridge financing, related party   362,000    -    -    -    232,000    -    -    - 
Due to related party   22,769    2,223    4,607    3,000    12,804    2,010    2,349    1,846 
Total current liabilities   400,400    6,855    9,943    7,580    249,328    11,315    10,819    6,324 
Operational notes, related party   -    -    -    -    -    -    -    - 
Total liabilities   400,400    6,855    9,943    7,580    249,328    11,315    10,819    6,324 
Members’ equity (deficit)                                        
Members’ capital   -    240,554    339,118    214,538    -    264,995    367,071    179,562 
Retained earnings (accumulated deficit)   (10,312)   (3,880)   (22,629)   2,682    (4,828)   (1,232)   (9,786)   726 
Total members’ equity (deficit)   (10,312)   236,674    316,489    217,221    (4,828)   263,763    357,285    180,288 
Total liabilities and members’ equity  $390,088   $243,529   $326,432   $224,800   $244,500   $275,078   $368,104   $186,612 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-25

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2024

 

 

   Westhaven   Wheeler   Williamson   Woodland   Woodwind   Wynde   Wyndhurst   Zane   Consolidated 
ASSETS                                    
Current assets:                                             
Cash  $6,388   $14,689   $20,047   $4,751   $4,408   $4,051   $22,986   $15,987   $1,129,818 
Prepaid expenses   502    476    542    382    535    570    461    362    55,245 
Due from related parties   -    -    -    -    -    -    -    -    10,085 
Due from (to) third party property manager   565    3,232    5,790    2,163    3,172    4,838    344    2,462    321,782 
Total current assets   7,455    18,397    26,379    7,296    8,115    9,459    23,792    18,811    1,516,931 
Property and equipment, net   245,580    200,499    277,119    159,538    245,293    245,276    303,663    157,597    25,742,294 
Total assets  $253,035   $218,895   $303,498   $166,834   $253,408   $254,735   $327,455   $176,408   $27,259,224 
                                              
LIABILITIES AND MEMBERS’ EQUITY (DEFICIT)                                             
Current liabilities:                                             
Accrued expenses   5,070    2,970    3,131    2,651    1,518    2,622    1,750    2,742   $390,569 
Tenant deposits   2,145    1,649    3,543    1,295    1,695    2,645    -    1,275    196,117 
Bridge financing, related party   -    -    -    -    -    -    -    -    2,349,683 
Due to related party   2,601    2,047    2,228    1,751    4,436    8,331    1,868    1,205    371,332 
Total current liabilities   9,816    6,666    8,901    5,696    7,649    13,598    3,618    5,222    3,307,700 
Operational notes, related party   -    -    -    -    -    -    -    -    78,300 
Total liabilities   9,816    6,666    8,901    5,696    7,649    13,598    3,618    5,222    3,386,000 
Members’ equity (deficit)                                             
Members’ capital   257,282    207,393    289,712    169,469    254,853    257,851    328,032    171,337    24,710,152 
Retained earnings (accumulated deficit)   (14,063)   4,837    4,885    (8,331)   (9,095)   (16,713)   (4,194)   (151)   (836,928)
Total members’ equity (deficit)   243,218    212,230    294,597    161,138    245,758    241,137    323,837    171,186    23,873,224 
Total liabilities and members’ equity  $253,035   $218,895   $303,498   $166,834   $253,408   $254,735   $327,455   $176,408   $27,259,224 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-26

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Adams   Antares   Aramis   Arkoma   Arya   Aspen   Athos   Barclay 
Rental income  $25,690   $23,820   $24,940   $19,492   $13,815   $24,860   $25,620   $24,360 
                                         
Operating expenses:                                        
Depreciation   8,394    8,514    8,246    6,489    4,933    7,358    9,155    8,416 
Insurance   1,183    1,008    1,144    910    1,086    1,016    3,820    926 
Management fees   909    1,160    981    1,015    989    1,447    886    1,061 
Management fees, related party   3,039    2,926    2,955    2,141    1,447    2,293    2,950    2,940 
Repairs & maintenance   695    3,000    1,174    1,182    932    880    390    2,105 
Property taxes   1,933    3,202    4,026    2,552    1,363    3,033    5,814    3,315 
Other operating expenses   5,691    1,809    2,024    2,770    2,674    984    508    1,813 
Total operating expenses   21,844    21,618    20,551    17,060    13,424    17,010    23,522    20,576 
                                         
Income (loss) from operations   3,846    2,202    4,389    2,432    391    7,850    2,098    3,784 
                                         
Other expense (income)                                        
Interest expense   540    -    -    -    389    -    -    - 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   540    -    -    -    389    -    -    - 
                                         
Net income (loss)  $3,306   $2,202   $4,389   $2,432   $2   $7,850   $2,098   $3,784 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-27

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Bayne   Bean   Bennett   Benny   Bluebell   Bowling   Boxwood   Bradford 
Rental income  $27,720   $26,490   $20,927   $21,960   $21,236   $18,960   $22,448   $23,460 
                                         
Operating expenses:                                        
Depreciation   9,614    8,057    5,820    7,006    8,215    5,724    8,840    8,361 
Insurance   1,444    1,143    795    2,366    1,139    899    1,189    910 
Management fees   891    881    1,250    1,193    1,757    1,131    872    898 
Management fees, related party   3,290    3,036    1,694    2,447    2,863    1,633    2,831    2,867 
Repairs & maintenance   50    -    350    3,527    9,273    427    672    583 
Property taxes   3,460    3,566    1,824    3,894    4,668    1,628    3,618    3,229 
Other operating expenses   7,055    2,968    2,437    2,906    3,749    2,495    7,826    1,780 
Total operating expenses   25,804    19,651    14,171    23,338    31,665    13,938    25,847    18,628 
                                         
Income (loss) from operations   1,917    6,839    6,756    (1,378)   (10,430)   5,022    (3,399)   4,832 
                                         
Other expense (income)                                        
Interest expense   2,260    -    -    -    -    -    3,080    - 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   2,260    -    -    -    -    -    3,080    - 
                                         
Net income (loss)  $(344)  $6,839   $6,756   $(1,378)  $(10,430)  $5,022   $(6,479)  $4,832 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-28

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Brookwood   Bryant   Caden   Camellia   Caterpillar   Chilhowee   Claremore   Collinison 
Rental income  $22,963   $25,465   $19,140   $22,464   $12,358   $28,740   $18,240   $25,140 
                                         
Operating expenses:                                        
Depreciation   7,707    8,784    6,875    9,622    8,248    8,941    6,464    9,331 
Insurance   854    3,146    1,048    1,055    4,653    1,296    1,794    1,300 
Management fees   1,371    2,572    1,103    1,346    744    875    840    1,445 
Management fees, related party   2,149    2,877    2,261    1,981    2,152    3,402    2,026    2,977 
Repairs & maintenance   897    16,878    2,679    -    11,737    -    -    988 
Property taxes   3,855    5,705    1,442    3,271    4,933    2,484    2,463    2,513 
Other operating expenses   2,314    2,496    2,464    2,857    4,912    3,441    1,898    3,284 
Total operating expenses   19,147    42,457    17,872    20,132    37,379    20,439    15,485    21,837 
                                         
Income (loss) from operations   3,816    (16,992)   1,268    2,332    (25,020)   8,301    2,755    3,303 
                                         
Other expense (income)                                        
Interest expense   -    -    413    -    9    -    -    - 
Insurance claim proceeds   -    (14,762)   -    -    -    -    -    - 
Total other income (expense)   -    (14,762)   413    -    9    -    -    - 
                                         
Net income (loss)  $3,816   $(2,230)  $855   $2,332   $(25,030)  $8,301   $2,755   $3,303 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-29

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Cordero   Cristalino   Ellie   Emelina   Ethan   Frances   Glenncrest   Gordon 
Rental income  $12,270   $30,540   $18,883   $18,997   $18,300   $24,660   $13,767   $25,346 
                                         
Operating expenses:                                        
Depreciation   7,720    8,450    7,897    8,243    8,294    7,674    7,982    7,024 
Insurance   870    1,419    1,224    1,097    894    959    1,342    959 
Management fees   979    859    1,352    1,196    1,743    871    990    939 
Management fees, related party   2,092    3,463    2,741    2,244    1,782    2,801    2,328    2,718 
Repairs & maintenance   3,230    190    7,809    2,167    8,881    -    2,010    370 
Property taxes   3,369    4,705    3,053    2,946    2,195    3,901    3,807    3,612 
Other operating expenses   2,696    1,866    5,986    2,558    2,148    2,223    3,938    2,986 
Total operating expenses   20,956    20,952    30,062    20,452    25,937    18,429    22,396    18,608 
                                         
Income (loss) from operations   (8,686)   9,588    (11,180)   (1,455)   (7,637)   6,231    (8,630)   6,737 
                                         
Other expense (income)                                        
Interest expense   -    1,175    119    -    1,034    -    -    - 
Insurance claim proceeds   -    -    -    -    (2,234)   -    -    - 
Total other income (expense)   -    1,175    119    -    (1,200)   -    -    - 
                                         
Net income (loss)  $(8,686)  $8,413   $(11,298)  $(1,455)  $(6,436)  $6,231   $(8,630)  $6,737 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-30

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Haikey   Hamblen   Hancock   Hardman   Haven   Haverhill   Haybridge   Hedgecrest 
Rental income  $18,459   $22,251   $24,490   $30,340   $17,940   $24,088   $18,502   $19,950 
                                         
Operating expenses:                                        
Depreciation   6,735    7,053    8,454    10,652    5,098    6,449    9,862    10,874 
Insurance   1,862    1,026    1,212    1,209    821    983    1,243    1,243 
Management fees   1,122    1,127    1,179    981    905    1,468    966    1,799 
Management fees, related party   2,237    2,446    2,739    3,912    1,705    1,693    2,966    3,187 
Repairs & maintenance   3,651    1,737    3,377    1,410    650    5,450    2,655    4,915 
Property taxes   4,290    3,217    3,886    4,489    915    3,928    3,051    3,776 
Other operating expenses   2,656    2,643    3,010    2,333    1,803    3,030    3,020    4,333 
Total operating expenses   22,553    19,249    23,856    24,986    11,898    23,001    23,763    30,126 
                                         
Income (loss) from operations   (4,093)   3,002    634    5,354    6,042    1,086    (5,261)   (10,176)
                                         
Other expense (income)                                        
Interest expense   -    -    -    -    395    -    -    - 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   -    -    -    -    395    -    -    - 
                                         
Net income (loss)  $(4,093)  $3,002   $634   $5,354   $5,646   $1,086   $(5,261)  $(10,176)

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-31

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Helmerich   Hermanos   Holmes   Johnson   Keystone   Langley   Laurel   Layla 
Rental income  $18,219   $26,340   $14,655   $29,040   $21,854   $30,540   $26,304   $26,840 
                                         
Operating expenses:                                        
Depreciation   6,925    11,828    4,839    9,021    9,569    9,119    9,261    8,906 
Insurance   1,786    1,178    705    1,174    1,365    1,592    1,224    1,639 
Management fees   1,089    902    1,367    947    1,390    1,219    1,330    871 
Management fees, related party   2,190    3,117    1,494    3,440    3,199    3,588    3,301    3,249 
Repairs & maintenance   2,666    511    6,374    655    837    3,998    3,047    100 
Property taxes   2,680    4,746    1,368    3,481    2,963    2,121    3,052    3,069 
Other operating expenses   3,223    1,829    3,598    3,011    3,192    4,643    2,260    2,998 
Total operating expenses   20,558    24,110    19,745    21,729    22,515    26,280    23,475    20,832 
                                         
Income (loss) from operations   (2,340)   2,230    (5,090)   7,311    (661)   4,260    2,829    6,008 
                                         
Other expense (income)                                        
Interest expense   -    487    -    -    -    663    -    - 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   -    487    -    -    -    663    -    - 
                                         
Net income (loss)  $(2,340)  $1,743   $(5,090)  $7,311   $(661)  $3,598   $2,829   $6,008 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-32

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Liberty   Lithonia   Lola   Lucas   Macomber   Mallard   Marcy   Meridian 
Rental income  $23,340   $23,940   $25,790   $18,024   $25,692   $14,506   $16,735   $22,155 
                                         
Operating expenses:                                        
Depreciation   11,091    9,926    8,831    8,140    8,571    5,724    4,933    8,983 
Insurance   2,766    1,054    1,304    3,245    3,440    920    966    1,264 
Management fees   853    1,436    1,507    1,073    1,258    866    890    1,297 
Management fees, related party   2,527    2,177    3,030    2,300    2,865    1,778    1,579    2,557 
Repairs & maintenance   125    3,080    1,034    2,527    4,179    513    505    4,574 
Property taxes   4,909    5,602    2,636    5,958    5,744    1,654    1,870    2,360 
Other operating expenses   1,869    2,310    2,995    3,847    2,206    2,749    1,937    2,717 
Total operating expenses   24,139    25,585    21,337    27,090    28,264    14,204    12,680    23,751 
                                         
Income (loss) from operations   (799)   (1,645)   4,453    (9,066)   (2,571)   301    4,055    (1,596)
                                         
Other expense (income)                                        
Interest expense   600    1,823    -    -    -    -    -    - 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   600    1,823    -    -    -    -    -    - 
                                         
Net income (loss)  $(1,399)  $(3,468)  $4,453   $(9,066)  $(2,571)  $301   $4,055   $(1,596)

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-33

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Metallo   Misty   Montgomery   Northbrook   Northridge   Oakland   Palmore   Pebblestone 
Rental income  $12,508   $31,140   $19,740   $22,740   $11,761   $26,640   $12,303   $27,540 
                                         
Operating expenses:                                        
Depreciation   7,348    9,445    8,347    7,744    7,070    8,444    6,911    9,284 
Insurance   1,178    1,729    932    959    1,009    1,466    535    1,365 
Management fees   914    908    982    857    867    976    1,647    1,015 
Management fees, related party   2,270    3,711    1,969    2,671    2,137    3,133    1,626    3,382 
Repairs & maintenance   3,578    120    868    161    2,362    1,357    8,638    1,145 
Property taxes   3,387    5,924    2,329    4,394    2,277    2,904    1,063    3,022 
Other operating expenses   6,398    2,768    1,713    2,820    4,613    1,716    3,839    2,692 
Total operating expenses   25,073    24,605    17,140    19,605    20,336    19,997    24,259    21,903 
                                         
Income (loss) from operations   (12,565)   6,535    2,600    3,135    (8,574)   6,643    (11,956)   5,637 
                                         
Other expense (income)                                        
Interest expense   1,657    -    803    -    -    -    -    - 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   1,657    -    803    -    -    -    -    - 
                                         
Net income (loss)  $(14,222)  $6,535   $1,798   $3,135   $(8,574)  $6,643   $(11,956)  $5,637 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-34

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Perdita   Phoebe   Pongo   Portsmouth   Presidio   Rachel   Ratliff   Riverwood 
Rental income  $19,163   $23,850   $16,760   $15,117   $17,822   $21,955   $25,440   $14,623 
                                         
Operating expenses:                                        
Depreciation   9,121    7,636    9,121    6,862    6,575    7,943    8,789    10,040 
Insurance   1,035    1,054    1,035    959    1,042    1,268    1,354    1,155 
Management fees   1,088    874    1,047    1,780    802    845    897    1,044 
Management fees, related party   2,828    2,725    2,776    1,946    2,027    2,657    3,110    2,852 
Repairs & maintenance   1,125    335    2,149    4,796    370    50    -    5,510 
Property taxes   3,427    3,250    3,427    2,451    2,546    2,643    1,699    4,673 
Other operating expenses   3,976    1,903    2,412    5,358    7,365    3,096    2,201    3,397 
Total operating expenses   22,600    17,776    21,966    24,152    20,727    18,502    18,049    28,671 
                                         
Income (loss) from operations   (3,437)   6,074    (5,206)   (9,035)   (2,905)   3,453    7,391    (14,048)
                                         
Other expense (income)                                        
Interest expense   -    -    -    -    2,576    -    -    5 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   -    -    -    -    2,576    -    -    5 
                                         
Net income (loss)  $(3,437)  $6,074   $(5,206)  $(9,035)  $(5,482)  $3,453   $7,391   $(14,054)

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-35

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Roanoke   Robinson   Ross   Sansa   Sedgefield   Seneca   Sheezy   Sherwood 
Rental income  $30,340   $28,390   $28,400   $17,190   $26,239   $26,940   $22,540   $9,932 
                                         
Operating expenses:                                        
Depreciation   9,207    8,819    9,164    4,933    8,027    8,114    6,430    4,796 
Insurance   1,331    1,193    1,649    966    1,225    1,330    896    709 
Management fees   849    840    848    851    938    840    1,443    1,253 
Management fees, related party   3,597    3,362    3,430    1,605    3,066    3,085    2,361    1,300 
Repairs & maintenance   90    -    75    -    150    -    6,490    6,548 
Property taxes   4,759    3,827    3,360    2,133    3,492    3,297    3,130    1,306 
Other operating expenses   1,632    2,613    1,826    1,897    2,555    5,712    2,029    5,137 
Total operating expenses   21,465    20,653    20,352    12,383    19,453    22,378    22,780    21,048 
                                         
Income (loss) from operations   8,875    7,737    8,048    4,807    6,786    4,562    (240)   (11,116)
                                         
Other expense (income)                                        
Interest expense   -    -    -    -    -    -    -    - 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   -    -    -    -    -    -    -    - 
                                         
Net income (loss)  $8,875   $7,737   $8,048   $4,807   $6,786   $4,562   $(240)  $(11,116)

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-36

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Spangler   Summerglen   Tansel   Thomas   Tomlinson   Tytus   Vanzant   Watson 
Rental income  $22,311   $21,870   $24,697   $16,092   $16,680   $25,020   $26,940   $13,203 
                                         
Operating expenses:                                        
Depreciation   11,745    6,661    8,951    6,030    6,664    7,158    9,724    4,839 
Insurance   1,761    1,696    2,440    732    1,096    890    911    705 
Management fees   967    955    999    922    2,343    840    1,051    1,013 
Management fees, related party   3,256    2,431    3,235    1,647    1,891    2,722    3,445    1,429 
Repairs & maintenance   2,811    550    2,995    7,146    16,427    -    2,107    1,088 
Property taxes   5,502    2,902    4,124    2,414    2,745    3,678    5,244    1,347 
Other operating expenses   8,162    2,638    3,694    4,046    6,328    1,879    2,020    2,785 
Total operating expenses   34,203    17,832    26,438    22,936    37,493    17,167    24,502    13,205 
                                         
Income (loss) from operations   (11,892)   4,038    (1,742)   (6,844)   (20,813)   7,853    2,438    (3)
                                         
Other expense (income)                                        
Interest expense   2,489    -    5    -    4,156    -    -    - 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   2,489    -    5    -    4,156    -    -    - 
                                         
Net income (loss)  $(14,381)  $4,038   $(1,747)  $(6,844)  $(24,969)  $7,853   $2,438   $(3)

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-37

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Westhaven   Wheeler   Williamson   Woodland   Woodwind   Wynde   Wyndhurst   Zane   Consolidated 
Rental income  $23,040   $20,655   $16,588   $14,745   $14,036   $21,116   $16,268   $15,600   $2,060,996 
                                              
Operating expenses:                                             
Depreciation   7,017    5,729    7,880    5,853    7,008    8,048    8,514    4,602    759,834 
Insurance   880    899    1,106    779    772    1,241    1,186    788    125,363 
Management fees   951    840    3,118    974    754    1,000    849    1,037    107,401 
Management fees, related party   2,533    2,120    2,578    1,370    2,035    2,419    2,495    1,386    245,237 
Repairs & maintenance   1,108    -    23,962    1,343    4,162    979    1,325    1,464    255,030 
Property taxes   3,491    1,628    4,803    1,515    2,543    3,242    2,124    1,497    310,661 
Other operating expenses   1,997    1,900    3,342    1,845    3,454    2,516    4,407    1,831    298,280 
Total operating expenses   17,976    13,116    46,790    13,680    20,727    19,445    20,899    12,605    2,101,805 
                                              
Income (loss) from operations   5,064    7,539    (30,201)   1,065    (6,691)   1,672    (4,631)   2,995    (40,809)
                                              
Other expense (income)                                             
Interest expense   -    -    -    -    -    402    -    -    25,080 
Insurance claim proceeds   -    -    (15,391)   -    -    -    -    -    (32,387)
Total other income (expense)   -    -    (15,391)   -    -    402    -    -    (7,307)
                                              
Net income (loss)  $5,064   $7,539   $(14,810)  $1,065   $(6,691)  $1,269   $(4,631)  $2,995   $(33,502)

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-38

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Adams   Antares   Aramis   Arkoma   Arya   Aspen   Athos   Barclay 
Rental income  $(559)  $23,340   $24,540   $19,140   $16,740   $17,776   $25,140   $23,586 
                                         
Operating expenses:                                        
Depreciation   -    8,514    8,246    6,489    4,933    7,358    9,155    8,416 
Insurance   91    1,332    1,338    1,219    662    1,166    4,824    1,178 
Management fees   463    856    1,047    1,038    2,368    1,067    1,342    964 
Management fees, related party   (115)   3,042    3,073    2,232    1,669    1,962    3,056    3,042 
Repairs & maintenance   3,930    150    1,729    1,608    15,279    3,327    4,951    559 
Property taxes   228    3,183    3,568    (1,340)   (243)   2,621    5,629    2,482 
Other operating expenses   2,946    1,775    2,588    2,103    2,134    5,095    2,086    2,899 
Total operating expenses   7,544    18,851    21,588    13,349    26,802    22,596    31,043    19,541 
                                         
Income (loss) from operations   (8,102)   4,489    2,952    5,791    (10,062)   (4,820)   (5,903)   4,046 
                                         
Other expense (income)                                        
Interest expense   3,000    -    -    -    -    -    -    - 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   3,000    -    -    -    -    -    -    - 
                                         
Net income (loss)  $(11,102)  $4,489   $2,952   $5,791   $(10,062)  $(4,820)  $(5,903)  $4,046 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-39

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Bayne   Bean   Bennett   Benny   Bluebell   Bowling   Boxwood   Bradford 
Rental income  $72   $25,740   $20,340   $21,184   $25,440   $17,953   $-   $22,686 
                                         
Operating expenses:                                        
Depreciation   -    8,057    5,820    7,006    8,215    5,724    -    8,361 
Insurance   104    1,691    887    3,003    1,235    953    98    924 
Management fees   252    1,100    1,322    859    850    1,199    5    840 
Management fees, related party   6    3,122    1,575    2,385    3,145    1,485    -    2,957 
Repairs & maintenance   2,515    2,254    1,336    -    -    -    45    - 
Property taxes   16    1,373    1,474    3,666    5,632    1,628    61    2,507 
Other operating expenses   2,426    3,216    1,899    2,007    1,867    2,178    2,555    2,078 
Total operating expenses   5,318    20,813    14,313    18,925    20,945    13,167    2,762    17,667 
                                         
Income (loss) from operations   (5,246)   4,927    6,027    2,258    4,495    4,786    (2,762)   5,019 
                                         
Other expense (income)                                        
Interest expense   2,876    -    -    -    -    -    2,695    - 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   2,876    -    -    -    -    -    2,695    - 
                                         
Net income (loss)  $(8,122)  $4,927   $6,027   $2,258   $4,495   $4,786   $(5,457)  $5,019 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-40

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Brookwood   Bryant   Caden   Camellia   Caterpillar   Chilhowee   Claremore   Collinison 
Rental income  $22,440   $25,140   $17,313   $21,540   $21,540   $19,000   $11,334   $24,860 
                                         
Operating expenses:                                        
Depreciation   7,707    8,784    6,875    9,622    8,248    8,941    6,464    8,303 
Insurance   866    3,692    1,130    1,130    4,327    1,880    2,088    1,099 
Management fees   1,459    874    2,596    1,580    1,460    858    1,142    979 
Management fees, related party   2,020    2,851    1,405    1,674    2,213    2,903    1,614    3,025 
Repairs & maintenance   505    -    10,126    3,276    -    2,865    3,959    1,462 
Property taxes   3,657    5,488    1,348    3,354    4,581    (1,329)   797    1,618 
Other operating expenses   1,824    1,835    2,548    1,601    2,675    5,537    10,469    3,507 
Total operating expenses   18,038    23,523    26,028    22,236    23,504    21,655    26,532    19,992 
                                         
Income (loss) from operations   4,402    1,617    (8,715)   (696)   (1,964)   (2,655)   (15,198)   4,868 
                                         
Other expense (income)                                        
Interest expense   -    -    15    -    -    -    -    - 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   -    -    15    -    -    -    -    - 
                                         
Net income (loss)  $4,402   $1,617   $(8,730)  $(696)  $(1,964)  $(2,655)  $(15,198)  $4,868 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-41

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Cordero   Cristalino   Ellie   Emelina   Ethan   Frances   Glenncrest   Gordon 
Rental income  $24,540   $26,214   $8,362   $20,940   $17,700   $23,163   $23,741   $22,740 
                                         
Operating expenses:                                        
Depreciation   7,720    8,450    7,897    8,243    7,279    7,035    7,982    7,024 
Insurance   936    1,796    1,805    1,216    974    1,086    1,096    1,092 
Management fees   1,141    1,453    822    930    2,134    873    854    925 
Management fees, related party   2,653    3,187    1,762    2,335    1,734    2,264    1,639    2,637 
Repairs & maintenance   2,525    6,830    140    675    3,956    -    -    252 
Property taxes   3,247    4,814    (700)   2,693    2,052    551    1,547    3,130 
Other operating expenses   1,811    4,717    7,506    2,010    1,634    5,910    6,024    2,037 
Total operating expenses   20,034    31,246    19,232    18,103    19,763    17,717    19,143    17,097 
                                         
Income (loss) from operations   4,506    (5,033)   (10,870)   2,837    (2,063)   5,445    4,598    5,643 
                                         
Other expense (income)                                        
Interest expense   -    46    -    -    98    -    6,314    - 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   -    46    -    -    98    -    6,314    - 
                                         
Net income (loss)  $4,506   $(5,078)  $(10,870)  $2,837   $(2,160)  $5,445   $(1,716)  $5,643 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-42

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Haikey   Hamblen   Hancock   Hardman   Haven   Haverhill   Haybridge   Hedgecrest 
Rental income  $20,574   $25,140   $23,870   $29,940   $13,820   $24,819   $22,626   $18,554 
                                         
Operating expenses:                                        
Depreciation   6,735    7,053    8,454    10,652    5,098    6,449    9,862    9,862 
Insurance   2,534    713    1,507    1,161    359    1,172    1,005    1,005 
Management fees   946    870    919    944    946    1,588    824    1,051 
Management fees, related party   2,274    2,709    2,690    3,880    1,516    1,805    3,270    2,944 
Repairs & maintenance   739    -    790    843    2,457    605    980    3,510 
Property taxes   1,945    346    3,290    3,549    856    3,465    2,088    2,068 
Other operating expenses   2,734    2,134    1,691    2,628    3,338    1,655    3,912    3,614 
Total operating expenses   17,906    13,826    19,340    23,656    14,570    16,740    21,941    24,053 
                                         
Income (loss) from operations   2,668    11,314    4,529    6,284    (749)   8,080    685    (5,500)
                                         
Other expense (income)                                        
Interest expense   -    -    -    -    -    -    -    - 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   -    -    -    -    -    -    -    - 
                                         
Net income (loss)  $2,668   $11,314   $4,529   $6,284   $(749)  $8,080   $685   $(5,500)

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-43

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Helmerich   Hermanos   Holmes   Johnson   Keystone   Langley   Laurel   Layla 
Rental income  $19,306   $16,270   $16,740   $13,185   $25,322   $114   $24,710   $24,845 
                                         
Operating expenses:                                        
Depreciation   6,925    11,828    4,839    3,759    8,771    -    7,718    8,906 
Insurance   1,996    1,667    932    587    1,494    101    1,606    1,304 
Management fees   897    1,056    981    694    1,013    657    993    1,199 
Management fees, related party   2,231    2,602    1,557    1,450    3,266    (61)   2,380    3,251 
Repairs & maintenance   -    2,274    1,406    2,744    1,430    5,870    2,225    3,293 
Property taxes   884    4,680    (1,430)   1,780    2,279    596    2,878    1,831 
Other operating expenses   2,478    4,750    1,528    7,228    4,118    2,755    6,535    4,108 
Total operating expenses   15,411    28,856    9,812    18,242    22,371    9,918    24,335    23,893 
                                         
Income (loss) from operations   3,895    (12,586)   6,928    (5,057)   2,950    (9,804)   375    952 
                                         
Other expense (income)                                        
Interest expense   -    -    -    2,993    -    3,644    7,746    - 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   -    -    -    2,993    -    3,644    7,746    - 
                                         
Net income (loss)  $3,895   $(12,586)  $6,928   $(8,050)  $2,950   $(13,448)  $(7,371)  $952 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-44

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Liberty   Lithonia   Lola   Lucas   Macomber   Mallard   Marcy   Meridian 
Rental income  $21,787   $17,689   $25,440   $24,540   $26,005   $20,940   $15,692   $22,245 
                                         
Operating expenses:                                        
Depreciation   9,716    9,389    8,288    8,140    8,571    5,724    4,933    8,697 
Insurance   3,220    1,209    1,101    4,640    4,249    988    662    1,474 
Management fees   2,572    1,446    892    1,040    940    1,246    970    1,841 
Management fees, related party   2,528    1,668    3,153    2,781    3,028    2,187    1,585    2,662 
Repairs & maintenance   1,899    11,214    220    1,741    999    4,058    1,298    956 
Property taxes   4,543    4,659    1,582    5,002    5,392    1,654    (238)   2,021 
Other operating expenses   2,706    6,484    2,776    1,790    3,232    2,286    2,923    2,139 
Total operating expenses   27,184    36,069    18,011    25,134    26,411    18,142    12,134    19,791 
                                         
Income (loss) from operations   (5,397)   (18,380)   7,429    (594)   (406)   2,798    3,558    2,454 
                                         
Other expense (income)                                        
Interest expense   60    66    -    -    -    -    -    - 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   60    66    -    -    -    -    -    - 
                                         
Net income (loss)  $(5,457)  $(18,446)  $7,429   $(594)  $(406)  $2,798   $3,558   $2,454 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-45

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Metallo   Misty   Montgomery   Northbrook   Northridge   Oakland   Palmore   Pebblestone 
Rental income  $-   $1,403   $16,624   $17,055   $10,679   $20,129   $17,040   $24,394 
                                         
Operating expenses:                                        
Depreciation   -    -    7,441    7,744    6,481    8,444    6,911    8,510 
Insurance   -    104    1,014    1,006    1,485    1,062    2,032    1,481 
Management fees   369    235    3,652    666    651    762    1,095    812 
Management fees, related party   -    215    1,450    2,426    1,844    1,441    1,723    3,200 
Repairs & maintenance   3,695    1,650    3,958    -    199    1,316    2,282    - 
Property taxes   (25)   575    2,177    3,362    2,411    1,366    994    2,349 
Other operating expenses   1,984    5,518    3,881    4,968    7,777    6,971    1,727    4,303 
Total operating expenses   6,023    8,297    23,574    20,172    20,848    21,361    16,764    20,655 
                                         
Income (loss) from operations   (6,023)   (6,894)   (6,949)   (3,117)   (10,170)   (1,232)   276    3,740 
                                         
Other expense (income)                                        
Interest expense   1,657    3,270    29    -    -    8,263    -    - 
Insurance claim proceeds   -    -    (6,998)   -    -    -    -    - 
Total other income (expense)   1,657    3,270    (6,969)   -    -    8,263    -    - 
                                         
Net income (loss)  $(7,680)  $(10,164)  $19   $(3,117)  $(10,170)  $(9,496)  $276   $3,740 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-46

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Perdita   Phoebe   Pongo   Portsmouth   Presidio   Rachel   Ratliff   Riverwood 
Rental income  $23,452   $18,240   $24,577   $21,540   $-   $18,315   $21,200   $24,528 
                                         
Operating expenses:                                        
Depreciation   9,121    7,000    9,121    5,864    -    7,943    8,789    10,040 
Insurance   1,093    1,526    1,093    1,122    73    1,087    1,021    1,377 
Management fees   859    865    931    980    1,029    821    909    1,719 
Management fees, related party   3,197    1,311    3,287    2,161    -    2,064    3,001    2,115 
Repairs & maintenance   190    1,650    910    1,405    10,293    810    990    880 
Property taxes   2,672    1,534    2,672    2,976    378    819    422    4,039 
Other operating expenses   2,109    6,211    2,115    1,474    2,009    6,980    6,492    1,626 
Total operating expenses   19,241    20,098    20,129    15,983    13,782    20,526    21,624    21,797 
                                         
Income (loss) from operations   4,211    (1,858)   4,448    5,557    (13,782)   (2,211)   (424)   2,731 
                                         
Other expense (income)                                        
Interest expense   -    6,011    -    -    2,338    -    -    - 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   -    6,011    -    -    2,338    -    -    - 
                                         
Net income (loss)  $4,211   $(7,869)  $4,448   $5,557   $(16,120)  $(2,211)  $(424)  $2,731 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-47

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Roanoke   Robinson   Ross   Sansa   Sedgefield   Seneca   Sheezy   Sherwood 
Rental income  $32,239   $3,799   $27,531   $16,740   $16,766   $4,065   $21,840   $16,740 
                                         
Operating expenses:                                        
Depreciation   9,207    735    9,164    4,933    6,020    1,352    6,430    4,796 
Insurance   1,602    194    1,353    662    1,018    265    1,025    939 
Management fees   1,208    197    880    846    1,123    225    937    1,008 
Management fees, related party   3,917    488    2,861    1,669    1,399    628    2,305    1,637 
Repairs & maintenance   3,683    572    -    60    4,232    466    1,224    819 
Property taxes   1,965    124    1,875    (243)   2,736    191    2,382    (1,260)
Other operating expenses   1,065    6,580    6,156    1,912    5,608    6,549    3,331    1,524 
Total operating expenses   22,647    8,891    22,290    9,839    22,135    9,676    17,635    9,463 
                                         
Income (loss) from operations   9,592    (5,092)   5,241    6,901    (5,369)   (5,612)   4,205    7,277 
                                         
Other expense (income)                                        
Interest expense   -    3,134    -    -    9,583    2,743    -    - 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   -    3,134    -    -    9,583    2,743    -    - 
                                         
Net income (loss)  $9,592   $(8,226)  $5,241   $6,901   $(14,952)  $(8,355)  $4,205   $7,277 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-48

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Spangler   Summerglen   Tansel   Thomas   Tomlinson   Tytus   Vanzant   Watson 
Rental income  $-   $20,122   $28,740   $21,390   $-   $24,540   $24,022   $16,740 
                                         
Operating expenses:                                        
Depreciation   -    6,661    8,951    6,030    -    7,158    8,914    4,839 
Insurance   115    1,883    2,844    762    74    963    1,139    932 
Management fees   961    912    995    1,421    27    879    1,322    840 
Management fees, related party   -    2,182    3,581    1,606    -    2,813    2,749    1,557 
Repairs & maintenance   3,300    150    1,271    1,116    274    386    6,260    - 
Property taxes   578    647    3,340    2,098    251    3,796    1,003    (1,430)
Other operating expenses   2,190    1,988    1,907    1,856    1,833    1,632    5,868    1,498 
Total operating expenses   7,144    14,423    22,889    14,889    2,459    17,628    27,255    8,235 
                                         
Income (loss) from operations   (7,144)   5,699    5,851    6,501    (2,459)   6,912    (3,234)   8,505 
                                         
Other expense (income)                                        
Interest expense   3,168    -    -    -    2,368    -    -    - 
Insurance claim proceeds   -    -    -    -    -    -    -    - 
Total other income (expense)   3,168    -    -    -    2,368    -    -    - 
                                         
Net income (loss)  $(10,312)  $5,699   $5,851   $6,501   $(4,828)  $6,912   $(3,234)  $8,505 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-49

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Westhaven   Wheeler   Williamson   Woodland   Woodwind   Wynde   Wyndhurst   Zane   Consolidated 
Rental income  $18,979   $19,788   $26,640   $15,540   $20,327   $23,640   $23,142   $15,300   $1,805,660 
                                              
Operating expenses:                                             
Depreciation   7,017    5,729    7,880    5,853    7,008    8,048    8,514    4,481    646,366 
Insurance   1,174    953    1,009    839    769    1,462    1,686    1,040    124,881 
Management fees   1,661    840    840    840    1,321    980    1,243    855    100,890 
Management fees, related party   2,278    1,991    3,144    1,443    1,835    2,551    2,553    1,444    201,974 
Repairs & maintenance   7,101    -    -    -    5,420    1,234    4,013    150    197,763 
Property taxes   4,839    1,628    2,882    1,416    2,341    3,246    497    1,531    190,208 
Other operating expenses   1,836    1,167    1,839    1,774    1,899    2,064    5,196    1,231    315,688 
Total operating expenses   25,907    12,308    17,594    12,165    20,594    19,585    23,701    10,732    1,777,769 
                                              
Income (loss) from operations   (6,927)   7,480    9,046    3,375    (267)   4,055    (559)   4,568    27,892 
                                              
Other expense (income)                                             
Interest expense   -    -    -    -    -    -    -    -    72,115 
Insurance claim proceeds   -    -    -    -    -    -    -    -    (6,998)
Total other income (expense)   -    -    -    -    -    -    -    -    65,117 
                                              
Net income (loss)  $(6,927)  $7,480   $9,046   $3,375   $(267)  $4,055   $(559)  $4,568   $(37,225)

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-50

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Adams   Antares   Aramis   Arkoma   Arya   Aspen   Athos   Barclay 
Balance at January 1, 2025  $(8,102)  $308,648   $294,006   $246,908   $170,803   $256,383   $285,701   $315,703 
Issuance of membership units, net of offering costs   334,077    -    -    -    -    -    -    - 
Deemed contribution from Manager   -    -    -    -    -    -    -    - 
Distributions   (16,203)   (15,922)   (13,858)   (12,471)   (5,234)   (11,299)   (12,126)   (17,599)
Net income (loss)   3,306    2,202    4,389    2,432    2    7,850    2,098    3,784 
Balance at December 31, 2025  $313,078   $294,928   $284,538   $236,869   $165,571   $252,935   $275,673   $301,888 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-51

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Bayne   Bean   Bennett   Benny   Bluebell   Bowling   Boxwood   Bradford 
Balance at January 1, 2025  $(8,122)  $292,453   $208,445   $246,690   $304,999   $203,742   $(5,457)  $312,677 
Issuance of membership units, net of offering costs   380,478    -    -    -    -    -    353,436    - 
Deemed contribution from Manager   5,136    -    -    -    -    -    5,775    - 
Distributions   (17,798)   (17,326)   (13,860)   (10,115)   (11,682)   (12,613)   (14,886)   (16,911)
Net income (loss)   (344)   6,839    6,756    (1,378)   (10,430)   5,022    (6,479)   4,832 
Balance at December 31, 2025  $359,350   $281,965   $201,342   $235,197   $282,888   $196,151   $332,388   $300,598 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-52

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Brookwood   Bryant   Caden   Camellia   Caterpillar   Chilhowee   Claremore   Collinison 
Balance at January 1, 2025  $272,083   $275,037   $232,185   $257,434   $300,848   $316,094   $223,019   $312,615 
Issuance of membership units, net of offering costs   -    -    -    -    -    -    -    - 
Deemed contribution from Manager   -    -    -    -    -    -    -    - 
Distributions   (13,208)   (12,280)   (7,254)   (14,141)   (3,467)   (17,847)   (8,145)   (15,058)
Net income (loss)   3,816    (2,230)   855    2,332    (25,030)   8,301    2,755    3,303 
Balance at December 31, 2025  $262,691   $260,527   $225,786   $245,625   $272,352   $306,548   $217,629   $300,860 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-53

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Cordero   Cristalino   Ellie   Emelina   Ethan   Frances   Glenncrest   Gordon 
Balance at January 1, 2025  $273,626   $280,188   $280,678   $242,043   $185,812   $288,348   $300,751   $258,217 
Issuance of membership units, net of offering costs   -    -    -    -    -    -    -    - 
Deemed contribution from Manager   -    -    -    -    -    -    -    - 
Distributions   (8,388)   (12,780)   (3,448)   (7,320)   (6,866)   (20,283)   (10,015)   (16,500)
Net income (loss)   (8,686)   8,413    (11,298)   (1,455)   (6,436)   6,231    (8,630)   6,737 
Balance at December 31, 2025  $256,551   $275,821   $265,931   $233,268   $172,509   $274,295   $282,106   $248,454 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-54

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Haikey   Hamblen   Hancock   Hardman   Haven   Haverhill   Haybridge   Hedgecrest 
Balance at January 1, 2025  $245,282   $255,655   $264,985   $392,257   $172,663   $229,141   $369,541   $364,523 
Issuance of membership units, net of offering costs   -    -    -    -    -    -    -    - 
Deemed contribution from Manager   -    -    -    -    -    -    -    - 
Distributions   (9,178)   (13,169)   (12,215)   (20,296)   (8,853)   (11,558)   (12,841)   (9,674)
Net income (loss)   (4,093)   3,002    634    5,354    5,646    1,086    (5,261)   (10,176)
Balance at December 31, 2025  $232,011   $245,488   $253,404   $377,315   $169,456   $218,670   $351,438   $344,673 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-55

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Helmerich   Hermanos   Holmes   Johnson   Keystone   Langley   Laurel   Layla 
Balance at January 1, 2025  $255,784   $299,907   $178,968   $344,701   $349,812   $(9,804)  $351,227   $327,146 
Issuance of membership units, net of offering costs   -    -    -    -    -    362,757    -    - 
Deemed contribution from Manager   -    -    -    -    -    -    -    - 
Distributions   (10,681)   (12,196)   (7,532)   (20,547)   (15,027)   (19,200)   (18,938)   (19,563)
Net income (loss)   (2,340)   1,743    (5,090)   7,311    (661)   3,598    2,829    6,008 
Balance at December 31, 2025  $242,764   $289,454   $166,346   $331,466   $334,124   $337,350   $335,118   $313,591 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-56

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Liberty   Lithonia   Lola   Lucas   Macomber   Mallard   Marcy   Meridian 
Balance at January 1, 2025  $251,189   $261,460   $310,873   $258,877   $273,612   $209,524   $183,713   $263,593 
Issuance of membership units, net of offering costs   -    -    -    -    -    -    -    - 
Deemed contribution from Manager   -    -    -    -    -    -    -    - 
Distributions   (10,615)   (9,939)   (19,585)   (7,341)   (12,857)   (8,562)   (12,927)   (10,538)
Net income (loss)   (1,399)   (3,468)   4,453    (9,066)   (2,571)   301    4,055    (1,596)
Balance at December 31, 2025  $239,175   $248,053   $295,741   $242,471   $258,184   $201,263   $174,841   $251,459 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-57

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Metallo   Misty   Montgomery   Northbrook   Northridge   Oakland   Palmore   Pebblestone 
Balance at January 1, 2025  $(6,023)  $368,363   $199,498   $286,266   $270,152   $315,401   $197,030   $339,662 
Issuance of membership units, net of offering costs   322,979    495    -    -    -    -    -    - 
Deemed contribution from Manager   -    -    -    -    -    -    -    - 
Distributions   (6,349)   (20,978)   (8,794)   (14,206)   (6,197)   (19,885)   (4,253)   (19,241)
Net income (loss)   (14,222)   6,535    1,798    3,135    (8,574)   6,643    (11,956)   5,637 
Balance at December 31, 2025  $296,385   $354,415   $192,501   $275,195   $255,380   $302,160   $180,821   $326,058 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-58

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Perdita   Phoebe   Pongo   Portsmouth   Presidio   Rachel   Ratliff   Riverwood 
Balance at January 1, 2025  $336,641   $285,579   $339,479   $210,312   $(16,120)  $296,012   $321,970   $289,911 
Issuance of membership units, net of offering costs   -    -    -    -    265,302    -    -    - 
Deemed contribution from Manager   -    -    -    -    4,914    -    -    - 
Distributions   (11,687)   (17,784)   (11,208)   (3,536)   (9,688)   (16,876)   (18,865)   (7,690)
Net income (loss)   (3,437)   6,074    (5,206)   (9,035)   (5,482)   3,453    7,391    (14,054)
Balance at December 31, 2025  $321,517   $273,869   $323,065   $197,741   $238,927   $282,589   $310,495   $268,168 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-59

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Roanoke   Robinson   Ross   Sansa   Sedgefield   Seneca   Sheezy   Sherwood 
Balance at January 1, 2025  $340,419   $348,264   $345,099   $186,229   $317,949   $316,161   $231,698   $174,504 
Issuance of membership units, net of offering costs   -    -    -    -    -    -    -    - 
Deemed contribution from Manager   -    -    -    -    -    -    -    - 
Distributions   (20,229)   (19,989)   (22,010)   (12,718)   (18,256)   (16,472)   (14,407)   (7,508)
Net income (loss)   8,875    7,737    8,048    4,807    6,786    4,562    (240)   (11,116)
Balance at December 31, 2025  $329,065   $336,011   $331,137   $178,318   $306,479   $304,250   $217,050   $155,880 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-60

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Spangler   Summerglen   Tansel   Thomas   Tomlinson   Tytus   Vanzant   Watson 
Balance at January 1, 2025  $(10,312)  $236,674   $316,489   $217,221   $(4,828)  $263,763   $357,285   $180,288 
Issuance of membership units, net of offering costs   420,629    -    -    -    271,251    -    -    - 
Deemed contribution from Manager   5,657    -    -    -    6,525    -    -    - 
Distributions   (11,858)   (13,077)   (9,849)   (6,980)   (7,820)   (17,593)   (19,960)   (7,649)
Net income (loss)   (14,381)   4,038    (1,747)   (6,844)   (24,969)   7,853    2,438    (3)
Balance at December 31, 2025  $389,735   $227,635   $304,894   $203,397   $240,159   $254,022   $339,763   $172,636 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-61

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Westhaven   Wheeler   Williamson   Woodland   Woodwind   Wynde   Wyndhurst   Zane   Consolidated 
Balance at January 1, 2025  $243,218   $212,230   $294,597   $161,138   $245,758   $241,137   $323,837   $171,186   $23,873,224 
Issuance of membership units, net of offering costs   -    -    -    -    -    -    -    -    2,711,403 
Deemed contribution from Manager   -    -    -    -    -    -    -    -    28,006 
Distributions   (10,488)   (14,572)   (9,846)   (9,276)   (5,701)   (10,082)   (11,529)   (11,897)   (1,217,737)
Net income (loss)   5,064    7,539    (14,810)   1,065    (6,691)   1,269    (4,631)   2,995    (33,502)
Balance at December 31, 2025  $237,794   $205,198   $269,941   $152,927   $233,366   $232,325   $307,677   $162,284   $25,361,395 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-62

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Adams   Antares   Aramis   Arkoma   Arya   Aspen   Athos   Barclay 
Balance at  January 1, 2024  $-   $319,898   $305,955   $255,800   $189,707   $271,438   $304,549   $329,476 
Issuance of membership units, net of offering costs   -    -    650    -    -    -    762    289 
Redemption of membership units   -    -    -    -    -    (100)   -    - 
Deemed contribution from Manager   3,000    -    -    -    -    -    -    - 
Distributions   -    (15,739)   (15,551)   (14,682)   (8,841)   (10,135)   (13,706)   (18,107)
Net income (loss)   (11,102)   4,489    2,952    5,791    (10,062)   (4,820)   (5,903)   4,046 
Balance at December 31, 2024  $(8,102)  $308,648   $294,006   $246,908   $170,803   $256,383   $285,701   $315,703 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-63

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Bayne   Bean   Bennett   Benny   Bluebell   Bowling   Boxwood   Bradford 
Balance at  January 1, 2024  $-   $305,397   $216,679   $258,203   $318,328   $211,130   $-   $324,785 
Issuance of membership units, net of offering costs   -    -    -    -    -    -    -    - 
Redemption of membership units   -    -    -    (300)   -    -    -    - 
Deemed contribution from Manager   -    -    -    -    -    -    -    - 
Distributions   -    (17,871)   (14,261)   (13,472)   (17,824)   (12,174)   -    (17,127)
Net income (loss)   (8,122)   4,927    6,027    2,258    4,495    4,786    (5,457)   5,019 
Balance at December 31, 2024  $(8,122)  $292,453   $208,445   $246,690   $304,999   $203,742   $(5,457)  $312,677 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-64

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Brookwood   Bryant   Caden   Camellia   Caterpillar   Chilhowee   Claremore   Collinison 
Balance at  January 1, 2024  $282,410   $288,572   $246,877   $273,042   $314,213   $333,585   $246,890   $321,701 
Issuance of membership units, net of offering costs   -    -    -    -    -    -    -    - 
Redemption of membership units   (300)   (300)   -    -    -    -    (300)   - 
Deemed contribution from Manager   -    -    -    -    -    -    -    - 
Distributions   (14,429)   (14,852)   (5,962)   (14,912)   (11,401)   (14,836)   (8,373)   (13,954)
Net income (loss)   4,402    1,617    (8,730)   (696)   (1,964)   (2,655)   (15,198)   4,868 
Balance at December 31, 2024  $272,083   $275,037   $232,185   $257,434   $300,848   $316,094   $223,019   $312,615 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-65

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Cordero   Cristalino   Ellie   Emelina   Ethan   Frances   Glenncrest   Gordon 
Balance at  January 1, 2024  $287,156   $293,548   $299,850   $250,360   $195,283   $(3,010)  $(2,974)  $268,739 
Issuance of membership units, net of offering costs   -    -    -    -    -    304,290    310,787    - 
Redemption of membership units   -    (100)   -    -    -    -    -    - 
Deemed contribution from Manager   -    -    -    -    -    -    5,510    - 
Distributions   (18,036)   (8,182)   (8,302)   (11,154)   (7,310)   (18,377)   (10,856)   (16,165)
Net income (loss)   4,506    (5,078)   (10,870)   2,837    (2,160)   5,445    (1,716)   5,643 
Balance at December 31, 2024  $273,626   $280,188   $280,678   $242,043   $185,812   $288,348   $300,751   $258,217 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-66

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Haikey   Hamblen   Hancock   Hardman   Haven   Haverhill   Haybridge   Hedgecrest 
Balance at  January 1, 2024  $257,206   $262,776   $275,115   $406,226   $179,568   $230,845   $382,626   $382,695 
Issuance of membership units, net of offering costs   -    -    -    -    -    -    -    - 
Redemption of membership units   -    (300)   (800)   -    -    -    -    - 
Deemed contribution from Manager   -    -    -    -    -    -    -    - 
Distributions   (14,591)   (18,136)   (13,859)   (20,252)   (6,156)   (9,784)   (13,771)   (12,673)
Net income (loss)   2,668    11,314    4,529    6,284    (749)   8,080    685    (5,500)
Balance at December 31, 2024  $245,282   $255,655   $264,985   $392,257   $172,663   $229,141   $369,541   $364,523 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-67

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Helmerich   Hermanos   Holmes   Johnson   Keystone   Langley   Laurel   Layla 
Balance at  January 1, 2024  $267,521   $316,341   $184,876   $-   $366,522   $-   $-   $346,216 
Issuance of membership units, net of offering costs   -    -    -    359,646    -    -    364,407    - 
Redemption of membership units   -    -    -    -    -    -    -    - 
Deemed contribution from Manager   -    -    -    2,165    -    3,644    6,988    - 
Distributions   (15,632)   (3,847)   (12,836)   (9,060)   (19,661)   -    (12,796)   (20,022)
Net income (loss)   3,895    (12,586)   6,928    (8,050)   2,950    (13,448)   (7,371)   952 
Balance at December 31, 2024  $255,784   $299,907   $178,968   $344,701   $349,812   $(9,804)  $351,227   $327,146 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-68

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Liberty   Lithonia   Lola   Lucas   Macomber   Mallard   Marcy   Meridian 
Balance at  January 1, 2024  $264,873   $288,681   $321,499   $275,513   $289,132   $221,670   $192,203   $276,379 
Issuance of membership units, net of offering costs   658    -    -    -    -    549    -    - 
Redemption of membership units   -    (300)   -    -    -    -    -    - 
Deemed contribution from Manager   -    3,192    -    -    -    -    -    - 
Distributions   (8,885)   (11,667)   (18,054)   (16,041)   (15,114)   (15,492)   (12,048)   (15,239)
Net income (loss)   (5,457)   (18,446)   7,429    (594)   (406)   2,798    3,558    2,454 
Balance at December 31, 2024  $251,189   $261,460   $310,873   $258,877   $273,612   $209,524   $183,713   $263,593 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-69

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Metallo   Misty   Montgomery   Northbrook   Northridge   Oakland   Palmore   Pebblestone 
Balance at  January 1, 2024  $-   $-   $205,383   $302,255   $(2,896)  $(4,381)  $206,903   $355,515 
Issuance of membership units, net of offering costs   -    377,301    -    -    295,804    333,402    -    - 
Redemption of membership units   -    -    -    -    -    -    -    - 
Deemed contribution from Manager   1,657    1,226    -    -    -    7,656    -    - 
Distributions   -    -    (5,904)   (12,872)   (12,586)   (11,779)   (10,149)   (19,593)
Net income (loss)   (7,680)   (10,164)   19    (3,117)   (10,170)   (9,496)   276    3,740 
Balance at December 31, 2024  $(6,023)  $368,363   $199,498   $286,266   $270,152   $315,401   $197,030   $339,662 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-70

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Perdita   Phoebe   Pongo   Portsmouth   Presidio   Rachel   Ratliff   Riverwood 
Balance at  January 1, 2024  $349,607   $(3,721)  $353,449   $219,491   $-   $(3,470)  $340,241   $301,731 
Issuance of membership units, net of offering costs   -    302,613    -    -    -    316,212    -    864 
Redemption of membership units   -    -    -    (300)   -    -    -    - 
Deemed contribution from Manager   -    5,246    -    -    -    -    -    - 
Distributions   (17,178)   (10,690)   (18,418)   (14,436)   -    (14,519)   (17,848)   (15,414)
Net income (loss)   4,211    (7,869)   4,448    5,557    (16,120)   (2,211)   (424)   2,731 
Balance at December 31, 2024  $336,641   $285,579   $339,479   $210,312   $(16,120)  $296,012   $321,970   $289,911 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-71

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Roanoke   Robinson   Ross   Sansa   Sedgefield   Seneca   Sheezy   Sherwood 
Balance at  January 1, 2024  $351,576   $-   $(3,646)  $191,739   $-   $-   $243,643   $178,874 
Issuance of membership units, net of offering costs   671    356,598    364,451    -    334,076    325,931    -    - 
Redemption of membership units   -    -    -    -    -    -    -    - 
Deemed contribution from Manager   -    1,471    -    -    7,917    1,576    -    - 
Distributions   (21,419)   (1,579)   (20,947)   (12,411)   (9,092)   (2,992)   (16,151)   (11,648)
Net income (loss)   9,592    (8,226)   5,241    6,901    (14,952)   (8,355)   4,205    7,277 
Balance at December 31, 2024  $340,419   $348,264   $345,099   $186,229   $317,949   $316,161   $231,698   $174,504 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-72

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Spangler   Summerglen   Tansel   Thomas   Tomlinson   Tytus   Vanzant   Watson 
Balance at  January 1, 2024  $-   $246,203   $328,603   $225,638   $-   $274,145   $(6,552)  $184,838 
Issuance of membership units, net of offering costs   -    -    -    -    -    699    384,745    - 
Redemption of membership units   -    -    -    -    -    -    -    (300)
Deemed contribution from Manager   -    -    -    -    -    -    -    - 
Distributions   -    (15,228)   (17,966)   (14,918)   -    (17,993)   (17,674)   (12,755)
Net income (loss)   (10,312)   5,699    5,851    6,501    (4,828)   6,912    (3,234)   8,505 
Balance at December 31, 2024  $(10,312)  $236,674   $316,489   $217,221   $(4,828)  $263,763   $357,285   $180,288 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-73

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY (DEFICIT)

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Westhaven   Wheeler   Williamson   Woodland   Woodwind   Wynde   Wyndhurst   Zane   Consolidated 
Balance at  January 1, 2024  $262,942   $219,997   $303,669   $169,207   $258,538   $248,596   $(3,113)  $178,916   $19,969,988 
Issuance of membership units, net of offering costs   -    -    465    -    -    -    339,809    -    5,075,676 
Redemption of membership units   (300)   -    -    -    -    -    -    -    (3,700)
Deemed contribution from Manager   -    -    -    -    -    -    -    -    51,247 
Distributions   (12,496)   (15,248)   (18,583)   (11,444)   (12,513)   (11,513)   (12,300)   (12,298)   (1,182,761)
Net income (loss)   (6,927)   7,480    9,046    3,375    (267)   4,055    (559)   4,568    (37,225)
Balance at December 31, 2024  $243,218   $212,230   $294,597   $161,138   $245,758   $241,137   $323,837   $171,186   $23,873,224 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-74

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Adams   Antares   Aramis   Arkoma   Arya   Aspen   Athos   Barclay 
Cash Flows from Operating Activities:                                
Net income (loss)  $3,306   $2,202   $4,389   $2,432   $2   $7,850   $2,098   $3,784 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   8,394    8,514    8,246    6,489    4,933    7,358    9,155    8,416 
Increase in assets                                        
Prepaid expenses   -    395    450    356    277    (1,251)   1,522    363 
Due (from) to third party property managers   (4,331)   2,525    (180)   (2,568)   107    (70)   (3,276)   1,911 
Increase (decrease) in liabilities                                        
Accrued expenses   (1,858)   (1,904)   (1,419)   (2,333)   (955)   (2,399)   (2,403)   (2,299)
Tenant deposits   250    (2,395)   -    2,295    (45)   -    -    - 
Due to (from) related parties   (2,186)   4,823    3,626    1,446    (2,361)   3,548    3,538    4,518 
Net cash provided by (used in) operating activities   3,575    14,160    15,113    8,117    1,957    15,036    10,635    16,694 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    -    -    -    -    -    - 
Net cash used in investing activities   -    -    -    -    -    -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    -    -    6,000    -    -    - 
Repayment of operational notes, related party   -    -    -    -    -    -    -    - 
Repayments of amounts due to related party   (16,000)   -    -    -    -    -    -    - 
Repayments of bridge financing, related party   (288,000)   -    -    -    -    -    -    - 
Redemption of membership units   -    -    -    -    -    -    -    - 
Net proceeds from the issuance of membership units   334,077    -    -    -    -    -    -    - 
Distributions   (16,203)   (15,922)   (13,858)   (12,471)   (5,234)   (11,299)   (12,126)   (17,599)
Net cash provided by (used in) financing activities   13,874    (15,922)   (13,858)   (12,471)   766    (11,299)   (12,126)   (17,599)
                                         
Net change in cash   17,449    (1,762)   1,256    (4,354)   2,723    3,738    (1,491)   (905)
Cash at beginning of year   -    12,203    7,204    23,313    2,277    3,249    9,313    24,025 
Cash at end of year  $17,449   $10,441   $8,460   $18,959   $5,000   $6,987   $7,823   $23,120 
                                         
Cash paid for income taxes  $100   $250   $200   $153   $153   $200   $200   $676 
Cash paid for interest expenses  $540   $-   $-   $-   $389   $-   $-   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $16,000   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $304,000   $-   $-   $-   $-   $-   $-   $- 
Bridge financing, related party for acquisition of property  $288,000   $-   $-   $-   $-   $-   $-   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $-   $-   $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-75

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Bayne   Bean   Bennett   Benny   Bluebell   Bowling   Boxwood   Bradford 
Cash Flows from Operating Activities:                                
Net income (loss)  $(344)  $6,839   $6,756   $(1,378)  $(10,430)  $5,022   $(6,479)  $4,832 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   9,614    8,057    5,820    7,006    8,215    5,724    8,840    8,361 
Increase in assets                                        
Prepaid expenses   -    450    310    940    440    346    -    356 
Due (from) to third party property managers   (4,836)   201    (486)   3,007    484    216    (6,495)   (136)
Increase (decrease) in liabilities                                        
Accrued expenses   (1,950)   (2,195)   (1,778)   (1,789)   (1,793)   (1,573)   (603)   (2,063)
Tenant deposits   2,745    -    -    -    -    -    4,390    - 
Due to (from) related parties   409    1,754    3,164    6,804    5,504    3,069    6,481    4,569 
Net cash provided by (used in) operating activities   5,638    15,106    13,787    14,590    2,421    12,805    6,134    15,919 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    -    -    -    -    -    - 
Net cash used in investing activities   -    -    -    -    -    -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    -    -    -    -    -    - 
Repayment of operational notes, related party   -    -    -    -    -    -    -    - 
Repayments of amounts due to related party   (18,942)   -    -    -    -    -    (14,505)   - 
Repayments of bridge financing, related party   (328,683)   -    -    -    -    -    (308,000)   - 
Redemption of membership units   -    -    -    -    -    -    -    - 
Net proceeds from the issuance of membership units   380,478    -    -    -    -    -    353,436    - 
Distributions   (17,798)   (17,326)   (13,860)   (10,115)   (11,682)   (12,613)   (14,886)   (16,911)
Net cash provided by (used in) financing activities   15,054    (17,326)   (13,860)   (10,115)   (11,682)   (12,613)   16,045    (16,911)
                                         
Net change in cash   20,693    (2,220)   (72)   4,475    (9,261)   192    22,179    (992)
Cash at beginning of year   -    11,429    7,455    3,024    19,029    5,720    -    22,583 
Cash at end of year  $20,693   $9,210   $7,383   $7,499   $9,768   $5,912   $22,179   $21,592 
                                         
Cash paid for income taxes  $100   $731   $200   $-   $-   $-   $25   $671 
Cash paid for interest expenses  $2,260   $-   $-   $-   $-   $-   $3,080   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $18,942   $-   $-   $-   $-   $-   $14,505   $- 
Acquisition of property purchase price  $347,625   $-   $-   $-   $-   $-   $322,505   $- 
Bridge financing, related party for acquisition of property  $328,683   $-   $-   $-   $-   $-   $308,000   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $5,136   $-   $-   $-   $-   $-   $5,775   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-76

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Brookwood   Bryant   Caden   Camellia   Caterpillar   Chilhowee   Claremore   Collinison 
Cash Flows from Operating Activities:                                
Net income (loss)  $3,816   $(2,230)  $855   $2,332   $(25,030)  $8,301   $2,755   $3,303 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   7,707    8,784    6,875    9,622    8,248    8,941    6,464    9,331 
Increase in assets                                        
Prepaid expenses   334    1,252    406    409    1,588    511    711    414 
Due (from) to third party property managers   (107)   345    (2,425)   105    783    (1,936)   (1,216)   (3,476)
Increase (decrease) in liabilities                                        
Accrued expenses   (1,420)   (2,424)   (323)   (1,546)   (2,251)   (1,506)   (1,909)   (1,575)
Tenant deposits   -    -    -    -    (45)   -    -    - 
Due to (from) related parties   2,085    7,208    5,761    5,030    1,770    2,153    6,818    2,114 
Net cash provided by (used in) operating activities   12,414    12,935    11,150    15,952    (14,936)   16,465    13,623    10,110 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    -    -    -    -    -    (5,140)
Net cash used in investing activities   -    -    -    -    -    -    -    (5,140)
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    -    -    10,100    -    -    - 
Repayment of operational notes, related party   -    -    -    -    -    -    -    - 
Repayments of amounts due to related party   -    -    -    -    -    -    -    - 
Repayments of bridge financing, related party   -    -    -    -    -    -    -    - 
Redemption of membership units   -    -    -    -    -    -    -    - 
Net proceeds from the issuance of membership units   -    -    -    -    -    -    -    - 
Distributions   (13,208)   (12,280)   (7,254)   (14,141)   (3,467)   (17,847)   (8,145)   (15,058)
Net cash provided by (used in) financing activities   (13,208)   (12,280)   (7,254)   (14,141)   6,633    (17,847)   (8,145)   (15,058)
                                         
Net change in cash   (794)   655    3,896    1,810    (8,303)   (1,382)   5,478    (10,088)
Cash at beginning of year   6,608    8,432    1,152    5,838    11,778    12,661    -    24,688 
Cash at end of year  $5,814   $9,087   $5,048   $7,649   $3,475   $11,278   $5,478   $14,600 
                                         
Cash paid for income taxes  $200   $200   $-   $-   $-   $1,239   $-   $738 
Cash paid for interest expenses  $-   $-   $413   $-   $9   $-   $-   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $-   $-   $-   $-   $-   $-   $-   $- 
Bridge financing, related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $-   $-   $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-77

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Cordero   Cristalino   Ellie   Emelina   Ethan   Frances   Glenncrest   Gordon 
Cash Flows from Operating Activities:                                
Net income (loss)  $(8,686)  $8,413   $(11,298)  $(1,455)  $(6,436)  $6,231   $(8,630)  $6,737 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   7,720    8,450    7,897    8,243    8,294    7,674    7,982    7,024 
Increase in assets                                        
Prepaid expenses   340    560    482    426    344    376    418    376 
Due (from) to third party property managers   4,390    (65)   2,092    269    (575)   (67)   4,568    (1)
Increase (decrease) in liabilities                                        
Accrued expenses   (913)   (1,571)   2,834    (1,349)   (1,121)   320    (2,273)   (2,156)
Tenant deposits   (2,495)   -    (2,445)   (400)   -    -    (2,240)   - 
Due to (from) related parties   1,542    3,310    1,403    4,397    3,487    1,678    6,582    1,599 
Net cash provided by (used in) operating activities   1,899    19,097    964    10,130    3,994    16,212    6,407    13,580 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    -    -    -    -    -    - 
Net cash used in investing activities   -    -    -    -    -    -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    8,900    -    6,400    -    -    - 
Repayment of operational notes, related party   -    (5,000)   -    -    -    -    -    - 
Repayments of amounts due to related party   -    -    -    -    -    -    -    - 
Repayments of bridge financing, related party   -    -    -    -    -    -    -    - 
Redemption of membership units   -    -    -    -    -    -    -    - 
Net proceeds from the issuance of membership units   -    -    -    -    -    -    -    - 
Distributions   (8,388)   (12,780)   (3,448)   (7,320)   (6,866)   (20,283)   (10,015)   (16,500)
Net cash provided by (used in) financing activities   (8,388)   (17,780)   5,452    (7,320)   (466)   (20,283)   (10,015)   (16,500)
                                         
Net change in cash   (6,490)   1,318    6,417    2,810    3,528    (4,071)   (3,608)   (2,920)
Cash at beginning of year   14,543    6,894    4,683    3,176    3,281    19,302    18,053    14,335 
Cash at end of year  $8,053   $8,211   $11,100   $5,986   $6,809   $15,231   $14,445   $11,415 
                                         
Cash paid for income taxes  $116   $50   $702   $253   $-   $219   $-   $200 
Cash paid for interest expenses  $-   $1,175   $119   $-   $1,034   $-   $-   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $-   $-   $-   $-   $-   $-   $-   $- 
Bridge financing, related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $-   $-   $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-78

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Haikey   Hamblen   Hancock   Hardman   Haven   Haverhill   Haybridge   Hedgecrest 
Cash Flows from Operating Activities:                                
Net income (loss)  $(4,093)  $3,002   $634   $5,354   $5,646   $1,086   $(5,261)  $(10,176)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   6,735    7,053    8,454    10,652    5,098    6,449    9,862    10,874 
Increase in assets                                        
Prepaid expenses   738    403    477    406    315    386    394    394 
Due (from) to third party property managers   (635)   (583)   2,561    46    3    1,885    (1,261)   3,920 
Increase (decrease) in liabilities                                        
Accrued expenses   (1,804)   (2,314)   (2,139)   (2,029)   (1,085)   955    (93)   2,264 
Tenant deposits   500    500    -    -    -    -    3,990    (1,995)
Due to (from) related parties   5,734    1,723    1,843    2,338    (1,876)   1,523    4,789    5,288 
Net cash provided by (used in) operating activities   7,175    9,784    11,829    16,766    8,101    12,284    12,420    10,570 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    -    -    -    -    -    (6,073)
Net cash used in investing activities   -    -    -    -    -    -    -    (6,073)
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    -    -    5,700    -    -    - 
Repayment of operational notes, related party   -    -    -    -    -    -    -    - 
Repayments of amounts due to related party   -    -    -    -    -    -    -    - 
Repayments of bridge financing, related party   -    -    -    -    -    -    -    - 
Redemption of membership units   -    -    -    -    -    -    -    - 
Net proceeds from the issuance of membership units   -    -    -    -    -    -    -    - 
Distributions   (9,178)   (13,169)   (12,215)   (20,296)   (8,853)   (11,558)   (12,841)   (9,674)
Net cash provided by (used in) financing activities   (9,178)   (13,169)   (12,215)   (20,296)   (3,153)   (11,558)   (12,841)   (9,674)
                                         
Net change in cash   (2,002)   (3,385)   (386)   (3,530)   4,948    726    (421)   (5,176)
Cash at beginning of year   10,753    13,581    7,665    18,728    2,123    6,658    18,262    16,561 
Cash at end of year  $8,750   $10,196   $7,279   $15,198   $7,071   $7,384   $17,840   $11,384 
                                         
Cash paid for income taxes  $495   $1,372   $200   $981   $-   $200   $202   $948 
Cash paid for interest expenses  $-   $-   $-   $-   $395   $-   $-   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $-   $-   $-   $-   $-   $-   $-   $- 
Bridge financing, related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $-   $-   $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-79

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Helmerich   Hermanos   Holmes   Johnson   Keystone   Langley   Laurel   Layla 
Cash Flows from Operating Activities:                                
Net income (loss)  $(2,340)  $1,743   $(5,090)  $7,311   $(661)  $3,598   $2,829   $6,008 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   6,925    11,828    4,839    9,021    9,569    9,119    9,261    8,906 
Increase in assets                                        
Prepaid expenses   707    464    274    -    539    (1,100)   482    506 
Due (from) to third party property managers   431    (98)   (236)   436    1,279    (4,563)   (17)   312 
Increase (decrease) in liabilities                                        
Accrued expenses   (2,294)   (1,097)   (1,780)   (707)   (2,818)   (5,524)   (3,006)   (1,956)
Tenant deposits   (345)   -    205    -    (50)   -    100    - 
Due to (from) related parties   4,751    (3,782)   3,652    2,098    2,232    (4,363)   2,051    1,942 
Net cash provided by (used in) operating activities   7,835    9,057    1,863    18,159    10,090    (2,834)   11,701    15,719 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    -    -    -    -    -    - 
Net cash used in investing activities   -    -    -    -    -    -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    4,700    -    -    -    -    -    - 
Repayment of operational notes, related party   -    -    -    -    -    -    -    - 
Repayments of amounts due to related party   -    -    -    -    -    (12,000)   -    - 
Repayments of bridge financing, related party   -    -    -    -    -    (318,000)   -    - 
Redemption of membership units   -    -    -    -    -    -    -    - 
Net proceeds from the issuance of membership units   -    -    -    -    -    362,757    -    - 
Distributions   (10,681)   (12,196)   (7,532)   (20,547)   (15,027)   (19,200)   (18,938)   (19,563)
Net cash provided by (used in) financing activities   (10,681)   (7,496)   (7,532)   (20,547)   (15,027)   13,557    (18,938)   (19,563)
                                         
Net change in cash   (2,846)   1,561    (5,669)   (2,388)   (4,937)   10,723    (7,237)   (3,844)
Cash at beginning of year   15,946    6,549    12,837    23,239    16,296    -    24,838    14,604 
Cash at end of year  $13,100   $8,110   $7,168   $20,851   $11,359   $10,723   $17,601   $10,760 
                                         
Cash paid for income taxes  $-   $59   $181   $100   $851   $-   $100   $818 
Cash paid for interest expenses  $-   $487   $-   $-   $-   $663   $-   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $12,000   $-   $- 
Acquisition of property purchase price  $-   $-   $-   $-   $-   $330,000   $-   $- 
Bridge financing, related party for acquisition of property  $-   $-   $-   $-   $-   $318,000   $-   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $-   $-   $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-80

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Liberty   Lithonia   Lola   Lucas   Macomber   Mallard   Marcy   Meridian 
Cash Flows from Operating Activities:                                
Net income (loss)  $(1,399)  $(3,468)  $4,453   $(9,066)  $(2,571)  $301   $4,055   $(1,596)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   11,091    9,926    8,831    8,140    8,571    5,724    4,933    8,983 
Increase in assets                                        
Prepaid expenses   1,100    414    415    1,292    1,370    355    277    492 
Due (from) to third party property managers   28    (124)   289    (2,281)   (361)   1,014    7    (254)
Increase (decrease) in liabilities                                        
Accrued expenses   (872)   (1,801)   (1,919)   (1,501)   (2,399)   (1,873)   (1,784)   (2,038)
Tenant deposits   -    -    -    2,395    250    (700)   -    - 
Due to (from) related parties   3,463    3,669    1,818    1,514    5,898    3,017    1,094    3,944 
Net cash provided by (used in) operating activities   13,411    8,616    13,886    494    10,757    7,838    8,582    9,531 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    (5,432)   -    -    -    -    - 
Net cash used in investing activities   -    -    (5,432)   -    -    -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    -    -    -    -    -    - 
Repayment of operational notes, related party   -    -    -    -    -    -    -    - 
Repayments of amounts due to related party   -    -    -    -    -    -    -    - 
Repayments of bridge financing, related party   -    -    -    -    -    -    -    - 
Redemption of membership units   -    -    -    -    -    -    -    - 
Net proceeds from the issuance of membership units   -    -    -    -    -    -    -    - 
Distributions   (10,615)   (9,939)   (19,585)   (7,341)   (12,857)   (8,562)   (12,927)   (10,538)
Net cash provided by (used in) financing activities   (10,615)   (9,939)   (19,585)   (7,341)   (12,857)   (8,562)   (12,927)   (10,538)
                                         
Net change in cash   2,797    (1,323)   (11,131)   (6,847)   (2,099)   (724)   (4,345)   (1,007)
Cash at beginning of year   4,897    6,926    20,051    15,168    10,353    11,162    10,940    4,306 
Cash at end of year  $7,694   $5,603   $8,921   $8,321   $8,254   $10,438   $6,595   $3,298 
                                         
Cash paid for income taxes  $200   $200   $777   $200   $200   $-   $153   $277 
Cash paid for interest expenses  $600   $1,823   $-   $-   $-   $-   $-   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $-   $-   $-   $-   $-   $-   $-   $- 
Bridge financing, related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $-   $-   $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-81

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Metallo   Misty   Montgomery   Northbrook   Northridge   Oakland   Palmore   Pebblestone 
Cash Flows from Operating Activities:                                
Net income (loss)  $(14,222)  $6,535   $1,798   $3,135   $(8,574)  $6,643   $(11,956)  $5,637 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   7,348    9,445    8,347    7,744    7,070    8,444    6,911    9,284 
Increase in assets                                        
Prepaid expenses   -    -    360    376    390    439    (1,167)   539 
Due (from) to third party property managers   (3,695)   (2,287)   (472)   418    (1,588)   (270)   1,545    (44)
Increase (decrease) in liabilities                                        
Accrued expenses   (3,408)   (581)   (974)   (1,193)   (1,412)   (1,589)   4,073    (2,802)
Tenant deposits   1,995    -    -    -    (893)   -    (1,645)   - 
Due to (from) related parties   2,483    6,637    3,573    1,764    1,875    1,892    3,041    2,019 
Net cash provided by (used in) operating activities   (9,499)   19,749    12,631    12,243    (3,132)   15,559    801    14,632 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    -    -    -    -    -    - 
Net cash used in investing activities   -    -    -    -    -    -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    -    -    -    -    -    - 
Repayment of operational notes, related party   -    -    -    -    -    -    -    - 
Repayments of amounts due to related party   (10,000)   -    -    -    -    -    -    - 
Repayments of bridge financing, related party   (284,000)   -    -    -    -    -    -    - 
Redemption of membership units   -    -    -    -    -    -    -    - 
Net proceeds from the issuance of membership units   322,979    495    -    -    -    -    -    - 
Distributions   (6,349)   (20,978)   (8,794)   (14,206)   (6,197)   (19,885)   (4,253)   (19,241)
Net cash provided by (used in) financing activities   22,630    (20,483)   (8,794)   (14,206)   (6,197)   (19,885)   (4,253)   (19,241)
                                         
Net change in cash   13,131    (734)   3,836    (1,963)   (9,329)   (4,325)   (3,451)   (4,609)
Cash at beginning of year   -    25,490    4,362    16,387    19,278    18,656    4,155    14,763 
Cash at end of year  $13,131   $24,756   $8,198   $14,424   $9,949   $14,331   $704   $10,154 
                                         
Cash paid for income taxes  $153   $-   $-   $187   $-   $789   $-   $849 
Cash paid for interest expenses  $1,657   $-   $803   $-   $-   $-   $-   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $10,000   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $294,000   $-   $-   $-   $-   $-   $-   $- 
Bridge financing, related party for acquisition of property  $284,000   $-   $-   $-   $-   $-   $-   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $-   $-   $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-82

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Perdita   Phoebe   Pongo   Portsmouth   Presidio   Rachel   Ratliff   Riverwood 
Cash Flows from Operating Activities:                                
Net income (loss)  $(3,437)  $6,074   $(5,206)  $(9,035)  $(5,482)  $3,453   $7,391   $(14,054)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   9,121    7,636    9,121    6,862    6,575    7,943    8,789    10,040 
Increase in assets                                        
Prepaid expenses   406    414    406    319    -    414    415    455 
Due (from) to third party property managers   (133)   (236)   5,168    4,386    (3,397)   577    (288)   4,253 
Increase (decrease) in liabilities                                        
Accrued expenses   (2,146)   (2,475)   (2,023)   (1,174)   (3,034)   (2,527)   (2,689)   (1,554)
Tenant deposits   100    -    (3,143)   (1,198)   1,745    (1,098)   -    (1,995)
Due to (from) related parties   4,942    1,735    5,044    2,649    (2,275)   1,744    1,915    1,645 
Net cash provided by (used in) operating activities   8,853    13,148    9,367    2,810    (5,868)   10,506    15,532    (1,208)
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    -    (5,989)   -    -    -    - 
Net cash used in investing activities   -    -    -    (5,989)   -    -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    -    -    -    -    -    6,000 
Repayment of operational notes, related party   -    -    -    -    -    -    -    - 
Repayments of amounts due to related party   -    -    -    -    (13,000)   -    -    - 
Repayments of bridge financing, related party   -    -    -    -    (229,000)   -    -    - 
Redemption of membership units   -    -    -    -    -    -    -    - 
Net proceeds from the issuance of membership units   -    -    -    -    265,302    -    -    - 
Distributions   (11,687)   (17,784)   (11,208)   (3,536)   (9,688)   (16,876)   (18,865)   (7,690)
Net cash provided by (used in) financing activities   (11,687)   (17,784)   (11,208)   (3,536)   13,614    (16,876)   (18,865)   (1,690)
                                         
Net change in cash   (2,834)   (4,636)   (1,841)   (6,715)   7,747    (6,369)   (3,333)   (2,898)
Cash at beginning of year   20,002    17,909    22,874    8,984    -    17,393    14,030    7,240 
Cash at end of year  $17,167   $13,273   $21,033   $2,270   $7,747   $11,023   $10,698   $4,342 
                                         
Cash paid for income taxes  $702   $1,387   $702   $-   $-   $708   $805   $200 
Cash paid for interest expenses  $-   $-   $-   $-   $2,576   $-   $-   $5 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $-   $-   $-   $-   $13,000   $-   $-   $- 
Acquisition of property purchase price  $-   $-   $-   $-   $242,000   $-   $-   $- 
Bridge financing, related party for acquisition of property  $-   $-   $-   $-   $229,000   $-   $-   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $-   $-   $-   $4,914   $-   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-83

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Roanoke   Robinson   Ross   Sansa   Sedgefield   Seneca   Sheezy   Sherwood 
Cash Flows from Operating Activities:                                
Net income (loss)  $8,875   $7,737   $8,048   $4,807   $6,786   $4,562   $(240)  $(11,116)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   9,207    8,819    9,164    4,933    8,027    8,114    6,430    4,796 
Increase in assets                                        
Prepaid expenses   (643)   -    527    277    418    -    351    276 
Due (from) to third party property managers   (3,433)   (1,088)   (203)   (131)   (2,051)   (844)   478    2,298 
Increase (decrease) in liabilities                                        
Accrued expenses   (3,343)   681    (2,591)   388    (2,075)   (2,642)   (1,725)   (1,713)
Tenant deposits   -    250    -    -    -    -    -    50 
Due to (from) related parties   2,225    5,673    2,011    1,094    9,761    2,533    1,540    4,571 
Net cash provided by (used in) operating activities   12,888    22,071    16,956    11,368    20,867    11,723    6,834    (838)
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    -    -    -    -    -    - 
Net cash used in investing activities   -    -    -    -    -    -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    -    -    -    -    -    - 
Repayment of operational notes, related party   -    -    -    -    -    -    -    - 
Repayments of amounts due to related party   -    -    -    -    -    -    -    - 
Repayments of bridge financing, related party   -    -    -    -    -    -    -    - 
Redemption of membership units   -    -    -    -    -    -    -    - 
Net proceeds from the issuance of membership units   -    -    -    -    -    -    -    - 
Distributions   (20,229)   (19,989)   (22,010)   (12,718)   (18,256)   (16,472)   (14,407)   (7,508)
Net cash provided by (used in) financing activities   (20,229)   (19,989)   (22,010)   (12,718)   (18,256)   (16,472)   (14,407)   (7,508)
                                         
Net change in cash   (7,342)   2,081    (5,054)   (1,350)   2,611    (4,749)   (7,574)   (8,346)
Cash at beginning of year   22,621    24,787    23,357    13,296    23,488    23,414    14,858    8,977 
Cash at end of year  $15,280   $26,868   $18,303   $11,946   $26,098   $18,665   $7,284   $631 
                                         
Cash paid for income taxes  $-   $214   $863   $153   $679   $-   $572   $153 
Cash paid for interest expenses  $-   $-   $-   $-   $-   $-   $-   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $-   $-   $-   $-   $-   $-   $-   $- 
Bridge financing, related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $-   $-   $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-84

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Spangler   Summerglen   Tansel   Thomas   Tomlinson   Tytus   Vanzant   Watson 
Cash Flows from Operating Activities:                                
Net income (loss)  $(14,381)  $4,038   $(1,747)  $(6,844)  $(24,969)  $7,853   $2,438   $(3)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   11,745    6,661    8,951    6,030    6,664    7,158    9,724    4,839 
Increase in assets                                        
Prepaid expenses   -    671    970    285    -    349    357    274 
Due (from) to third party property managers   (5,047)   (153)   114    174    (3,980)   (157)   66    (160)
Increase (decrease) in liabilities                                        
Accrued expenses   (14,313)   (1,927)   (2,323)   (1,485)   (3,093)   (1,761)   (3,411)   (1,761)
Tenant deposits   2,995    -    (100)   (100)   2,250    -    -    205 
Due to (from) related parties   5,306    4,826    (85)   4,791    12,706    1,700    2,130    1,055 
Net cash provided by (used in) operating activities   (13,696)   14,116    5,780    2,851    (10,422)   15,141    11,305    4,448 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    -    -    -    -    -    - 
Net cash used in investing activities   -    -    -    -    -    -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    5,500    -    -    -    -    - 
Repayment of operational notes, related party   -    -    -    -    -    -    -    - 
Repayments of amounts due to related party   (20,000)   -    -    -    (13,000)   -    -    - 
Repayments of bridge financing, related party   (362,000)   -    -    -    (232,000)   -    -    - 
Redemption of membership units   -    -    -    -    -    -    -    - 
Net proceeds from the issuance of membership units   420,629    -    -    -    271,251    -    -    - 
Distributions   (11,858)   (13,077)   (9,849)   (6,980)   (7,820)   (17,593)   (19,960)   (7,649)
Net cash provided by (used in) financing activities   26,771    (13,077)   (4,349)   (6,980)   18,431    (17,593)   (19,960)   (7,649)
                                         
Net change in cash   13,075    1,039    1,431    (4,129)   8,009    (2,453)   (8,656)   (3,200)
Cash at beginning of year   -    6,370    6,633    9,480    -    19,226    15,649    14,142 
Cash at end of year  $13,075   $7,409   $8,065   $5,351   $8,009   $16,773   $6,993   $10,942 
                                         
Cash paid for income taxes  $-   $-   $250   $200   $-   $-   $153   $161 
Cash paid for interest expenses  $2,489   $-   $5   $-   $4,156   $-   $-   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $20,000   $-   $-   $-   $13,000   $-   $-   $- 
Acquisition of property purchase price  $382,000   $-   $-   $-   $245,000   $-   $-   $- 
Bridge financing, related party for acquisition of property  $362,000   $-   $-   $-   $232,000   $-   $-   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $5,657   $-   $-   $-   $6,525   $-   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-85

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2025

 

 

   Westhaven   Wheeler   Williamson   Woodland   Woodwind   Wynde   Wyndhurst   Zane   Consolidated 
Cash Flows from Operating Activities:                                    
Net income (loss)  $5,064   $7,539   $(14,810)  $1,065   $(6,691)  $1,269   $(4,631)  $2,995   $(33,502)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                             
Depreciation   7,017    5,729    7,880    5,853    7,008    8,048    8,514    4,602    759,834 
Increase in assets                                             
Prepaid expenses   344    346    368    298    301    483    461    302    35,787 
Due (from) to third party property managers   (3,339)   3,176    5,102    1,069    58    752    (2,717)   2,462    (13,059)
Increase (decrease) in liabilities                                             
Accrued expenses   (3,088)   (1,735)   (1,916)   (1,367)   (235)   (1,487)   (398)   3,295    (163,643)
Tenant deposits   -    (1,649)   (1,693)   -    (100)   (250)   1,745    -    1,939 
Due to (from) related parties   5,467    3,003    1,712    3,530    4,663    (918)   4,131    2,485    286,596 
Net cash provided by (used in) operating activities   11,464    16,410    (3,356)   10,449    5,004    7,897    7,106    16,141    873,951 
                                              
Cash Flows from Investing Activities                                             
Additions to property and equipment   -    -    -    -    -    -    -    (7,252)   (29,885)
Net cash used in investing activities   -    -    -    -    -    -    -    (7,252)   (29,885)
                                              
Cash flows from financing activities                                             
Proceeds from operational notes, related party   -    -    -    -    -    5,800    -    -    59,100 
Repayment of operational notes, related party   -    -    -    -    -    -    -    -    (5,000)
Repayments of amounts due to related party   -    -    -    -    -    -    -    -    (117,447)
Repayments of bridge financing, related party   -    -    -    -    -    -    -    -    (2,349,683)
Redemption of membership units   -    -    -    -    -    -    -    -    - 
Net proceeds from the issuance of membership units   -    -    -    -    -    -    -    -    2,711,403 
Distributions   (10,488)   (14,572)   (9,846)   (9,276)   (5,701)   (10,082)   (11,529)   (11,897)   (1,217,737)
Net cash provided by (used in) financing activities   (10,488)   (14,572)   (9,846)   (9,276)   (5,701)   (4,282)   (11,529)   (11,897)   (919,364)
                                              
Net change in cash   976    1,838    (13,202)   1,173    (698)   3,615    (4,423)   (3,008)   (75,298)
Cash at beginning of year   6,388    14,689    20,047    4,751    4,408    4,051    22,986    15,987    1,129,818 
Cash at end of year  $7,364   $16,527   $6,845   $5,923   $3,710   $7,666   $18,563   $12,979   $1,054,521 
                                              
Cash paid for income taxes  $-   $-   $-   $-   $200   $-   $-   $-   $26,170 
Cash paid for interest expenses  $-   $-   $-   $-   $-   $402   $-   $-   $25,080 
                                              
Supplemental disclosure of non-cash investing and financing activities:                                             
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $-   $117,447 
Acquisition of property purchase price  $-   $-   $-   $-   $-   $-   $-   $-   $2,467,130 
Bridge financing, related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $-   $2,349,683 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $-   $-   $-   $-   $-   $-   $-   $28,006 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

F-86

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Adams   Antares   Aramis   Arkoma   Arya   Aspen   Athos   Barclay 
Cash Flows from Operating Activities:                                
Net income (loss)  $(11,102)  $4,489   $2,952   $5,791   $(10,062)  $(4,820)  $(5,903)  $4,046 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   -    8,514    8,246    6,489    4,933    7,358    9,155    8,416 
Increase in assets                                        
Prepaid expenses   -    (73)   (136)   (75)   (277)   (111)   (610)   (45)
Due (from) to third party property managers   (548)   (95)   (10,145)   3,455    (10,382)   (3,739)   (3,235)   4,204 
Increase (decrease) in liabilities                                        
Accrued expenses   4,871    (2,293)   1,239    (2,851)   148    674    (1,075)   (1,875)
Tenant deposits   2,345    500    -    -    -    1,795    -    - 
Due to (from) related parties   4,434    447    2,903    (1,212)   7,276    2,740    2,459    (3,274)
Net cash provided by (used in) operating activities   -    11,488    5,059    11,597    (8,364)   3,897    791    11,471 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    -    -    -    -    -    - 
Net cash provided by (used in) investing activities   -    -    -    -    -    -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    -    -    -    -    -    - 
Repayments of bridge financing, related party   -    -    -    -    -    -    -    - 
Redemption of membership units   -    -    -    -    -    (100)   -    - 
Distributions   -    (15,739)   (15,551)   (14,682)   (8,841)   (10,135)   (13,706)   (18,107)
Net cash provided by (used in) financing activities   -    (15,739)   (15,551)   (14,682)   (8,841)   (10,235)   (13,706)   (18,107)
                                         
Net change in cash   -    (4,251)   (10,492)   (3,085)   (17,205)   (6,338)   (12,916)   (6,636)
Cash at beginning of year   -    16,454    17,696    26,399    19,482    9,587    22,229    30,661 
Cash at end of year  $-   $12,203   $7,204   $23,313   $2,277   $3,249   $9,313   $24,025 
                                         
Cash paid for income taxes  $-   $-   $-   $-   $-   $-   $-   $294 
Cash paid for interest expenses  $3,000   $-   $-   $-   $-   $-   $-   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $304,000   $-   $-   $-   $-   $-   $-   $- 
Bridge financing, related party for acquisition of property  $288,000   $-   $-   $-   $-   $-   $-   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $3,000   $-   $-   $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-87

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Bayne   Bean   Bennett   Benny   Bluebell   Bowling   Boxwood   Bradford 
Cash Flows from Operating Activities:                                
Net income (loss)  $(8,122)  $4,927   $6,027   $2,258   $4,495   $4,786   $(5,457)  $5,019 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   -    8,057    5,820    7,006    8,215    5,724    -    8,361 
Increase in assets                                        
Prepaid expenses   -    (450)   (76)   (389)   (96)   (66)   -    (40)
Due (from) to third party property managers   -    (5,622)   (112)   514    3,923    7,810    -    3,585 
Increase (decrease) in liabilities                                        
Accrued expenses   4,831    1,415    (1,688)   (3,963)   (2,693)   (1,595)   5,161    (1,689)
Tenant deposits   -    -    -    -    250    (1,869)   -    250 
Due to (from) related parties   3,291    3,355    (3,260)   (939)   (113)   (12,748)   297    3,926 
Net cash provided by (used in) operating activities   -    11,683    6,711    4,487    13,982    2,042    -    19,413 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    -    -    -    -    -    - 
Net cash provided by (used in) investing activities   -    -    -    -    -    -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    -    -    -    -    -    - 
Repayments of bridge financing, related party   -    -    -    -    -    -    -    - 
Redemption of membership units   -    -    -    (300)   -    -    -    - 
Distributions   -    (17,871)   (14,261)   (13,472)   (17,824)   (12,174)   -    (17,127)
Net cash provided by (used in) financing activities   -    (17,871)   (14,261)   (13,772)   (17,824)   (12,174)   -    (17,127)
                                         
Net change in cash   -    (6,188)   (7,550)   (9,285)   (3,842)   (10,133)   -    2,286 
Cash at beginning of year   -    17,617    15,006    12,309    22,871    15,852    -    20,297 
Cash at end of year  $-   $11,429   $7,455   $3,024   $19,029   $5,720   $-   $22,583 
                                         
Cash paid for income taxes  $-   $625   $-   $425   $-   $-   $-   $293 
Cash paid for interest expenses  $2,876   $-   $-   $-   $-   $-   $2,695   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $347,625   $-   $-   $-   $-   $-   $322,505   $- 
Bridge financing, related party for acquisition of property  $328,683   $-   $-   $-   $-   $-   $308,000   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $-   $-   $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-88

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Brookwood   Bryant   Caden   Camellia   Caterpillar   Chilhowee   Claremore   Collinison 
Cash Flows from Operating Activities:                                
Net income (loss)  $4,402   $1,617   $(8,730)  $(696)  $(1,964)  $(2,655)  $(15,198)  $4,868 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   7,707    8,784    6,875    9,622    8,248    8,941    6,464    8,303 
Increase in assets                                        
Prepaid expenses   (38)   (363)   (84)   (81)   (793)   (173)   (202)   (414)
Due (from) to third party property managers   (4)   3,814    5,171    (2,873)   (1,282)   9,607    6,671    (1,148)
Increase (decrease) in liabilities                                        
Accrued expenses   (2,347)   (2,119)   (2,836)   (2,702)   (2,333)   (5,983)   (3,733)   2,450 
Tenant deposits   -    46    698    -    -    (100)   (798)   - 
Due to (from) related parties   (1,554)   344    (10,340)   (3,022)   1,671    (2,762)   (2,432)   21,604 
Net cash provided by (used in) operating activities   8,167    12,123    (9,247)   248    3,547    6,874    (9,227)   35,664 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    -    -    -    -    -    - 
Net cash provided by (used in) investing activities   -    -    -    -    -    -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    5,500    -    -    -    -    - 
Repayments of bridge financing, related party   -    -    -    -    -    -    -    - 
Redemption of membership units   (300)   (300)   -    -    -    -    (300)   - 
Distributions   (14,429)   (14,852)   (5,962)   (14,912)   (11,401)   (14,836)   (8,373)   (13,954)
Net cash provided by (used in) financing activities   (14,729)   (15,152)   (462)   (14,912)   (11,401)   (14,836)   (8,673)   (13,954)
                                         
Net change in cash   (6,562)   (3,029)   (9,709)   (14,664)   (7,854)   (7,961)   (17,900)   21,709 
Cash at beginning of year   13,170    11,462    10,861    20,502    19,632    20,622    17,900    2,979 
Cash at end of year  $6,608   $8,432   $1,152   $5,838   $11,778   $12,661   $-   $24,688 
                                         
Cash paid for income taxes  $-   $-   $-   $-   $-   $909   $410   $137 
Cash paid for interest expenses  $-   $-   $15   $-   $-   $-   $-   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $-   $-   $-   $-   $-   $-   $-   $- 
Bridge financing, related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $-   $-   $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-89

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Cordero   Cristalino   Ellie   Emelina   Ethan   Frances   Glenncrest   Gordon 
Cash Flows from Operating Activities:                                
Net income (loss)  $4,506   $(5,078)  $(10,870)  $2,837   $(2,160)  $5,445   $(1,716)  $5,643 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   7,720    8,450    7,897    8,243    7,279    7,035    7,982    7,024 
Increase in assets                                        
Prepaid expenses   (65)   (235)   (482)   (104)   (79)   (376)   (418)   (101)
Due (from) to third party property managers   3,738    (2,964)   (5,487)   3,649    2,359    (5,166)   (6,080)   3,414 
Increase (decrease) in liabilities                                        
Accrued expenses   (2,877)   2,113    (821)   (1,834)   (1,364)   3,176    1,359    (2,125)
Tenant deposits   -    2,995    2,445    -    -    2,245    3,990    - 
Due to (from) related parties   254    (14,674)   2,756    (3,653)   (2,117)   25,320    299,291    (504)
Net cash provided by (used in) operating activities   13,277    (9,393)   (4,563)   9,139    3,917    37,679    304,409    13,352 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    -    -    (8,700)   -    -    - 
Net cash provided by (used in) investing activities   -    -    -    -    (8,700)   -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    16,800    -    -    13,000    -    -    - 
Repayments of bridge financing, related party   -    -    -    -    -    -    (275,500)   - 
Redemption of membership units   -    (100)   -    -    -    -    -    - 
Distributions   (18,036)   (8,182)   (8,302)   (11,154)   (7,310)   (18,377)   (10,856)   (16,165)
Net cash provided by (used in) financing activities   (18,036)   8,518    (8,302)   (11,154)   5,690    (18,377)   (286,356)   (16,165)
                                         
Net change in cash   (4,759)   (875)   (12,865)   (2,015)   906    19,302    18,053    (2,813)
Cash at beginning of year   19,302    7,769    17,548    5,191    2,375    -    -    17,148 
Cash at end of year  $14,543   $6,894   $4,683   $3,176   $3,281   $19,302   $18,053   $14,335 
                                         
Cash paid for income taxes  $50   $100   $230   $-   $-   $-   $101   $- 
Cash paid for interest expenses  $-   $46   $-   $-   $98   $-   $6,314   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $-   $-   $-   $-   $-   $-   $-   $- 
Bridge financing, related party for acquisition of property  $-   $-   $-   $-   $-   $-   $275,500   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $-   $-   $-   $-   $-   $5,510   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-90

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Haikey   Hamblen   Hancock   Hardman   Haven   Haverhill   Haybridge   Hedgecrest 
Cash Flows from Operating Activities:                                
Net income (loss)  $2,668   $11,314   $4,529   $6,284   $(749)  $8,080   $685   $(5,500)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   6,735    7,053    8,454    10,652    5,098    6,449    9,862    9,862 
Increase in assets                                        
Prepaid expenses   (405)   (127)   (189)   (406)   (58)   (130)   (394)   (394)
Due (from) to third party property managers   3,740    3,893    2,004    (5,148)   2,602    (249)   (6,128)   (6,165)
Increase (decrease) in liabilities                                        
Accrued expenses   (3,853)   (2,211)   (1,367)   4,795    (1,512)   (207)   (1,263)   384 
Tenant deposits   -    -    -    -    100    -    -    1,995 
Due to (from) related parties   (2,374)   (2,869)   1,707    2,481    (5,976)   (1,740)   3,624    3,404 
Net cash provided by (used in) operating activities   6,512    17,054    15,139    18,658    (495)   12,204    6,385    3,585 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    -    -    -    -    -    - 
Net cash provided by (used in) investing activities   -    -    -    -    -    -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    -    -    -    -    -    - 
Repayments of bridge financing, related party   -    -    -    -    -    -    -    - 
Redemption of membership units   -    (300)   (800)   -    -    -    -    - 
Distributions   (14,591)   (18,136)   (13,859)   (20,252)   (6,156)   (9,784)   (13,771)   (12,673)
Net cash provided by (used in) financing activities   (14,591)   (18,436)   (14,659)   (20,252)   (6,156)   (9,784)   (13,771)   (12,673)
                                         
Net change in cash   (8,079)   (1,382)   480    (1,595)   (6,651)   2,420    (7,386)   (9,087)
Cash at beginning of year   18,832    14,963    7,185    20,323    8,774    4,238    25,648    25,648 
Cash at end of year  $10,753   $13,581   $7,665   $18,728   $2,123   $6,658   $18,262   $16,561 
                                         
Cash paid for income taxes  $424   $-   $-   $172   $167   $-   $599   $374 
Cash paid for interest expenses  $-   $-   $-   $-   $-   $-   $-   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $-   $-   $-   $-   $-   $-   $-   $- 
Bridge financing, related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $-   $-   $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-91

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Helmerich   Hermanos   Holmes   Johnson   Keystone   Langley   Laurel   Layla 
Cash Flows from Operating Activities:                                
Net income (loss)  $3,895   $(12,586)  $6,928   $(8,050)  $2,950   $(13,448)  $(7,371)  $952 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   6,925    11,828    4,839    3,759    8,771    -    7,718    8,906 
Increase in assets                                        
Prepaid expenses   (161)   (138)   (54)   -    (539)   -    (482)   (506)
Due (from) to third party property managers   5,680    4,672    2,685    (4,864)   (4,253)   (869)   (4,708)   (7,980)
Increase (decrease) in liabilities                                        
Accrued expenses   (3,726)   (1,697)   (3,051)   5,609    4,671    5,524    5,854    3,183 
Tenant deposits   300    898    -    2,645    2,295    2,995    2,295    2,695 
Due to (from) related parties   641    (13,078)   (1,745)   338,863    1,670    5,797    294,329    1,947 
Net cash provided by (used in) operating activities   13,554    (10,102)   9,601    337,962    15,565    -    297,633    9,196 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    -    -    -    -    -    - 
Net cash provided by (used in) investing activities   -    -    -    -    -    -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    -    -    -    -    -    - 
Repayments of bridge financing, related party   -    -    -    (305,663)   -    -    (260,000)   - 
Redemption of membership units   -    -    -    -    -    -    -    - 
Distributions   (15,632)   (3,847)   (12,836)   (9,060)   (19,661)   -    (12,796)   (20,022)
Net cash provided by (used in) financing activities   (15,632)   (3,847)   (12,836)   (314,723)   (19,661)   -    (272,796)   (20,022)
                                         
Net change in cash   (2,078)   (13,949)   (3,235)   23,239    (4,095)   -    24,838    (10,826)
Cash at beginning of year   18,024    20,497    16,072    -    20,391    -    -    25,430 
Cash at end of year  $15,946   $6,549   $12,837   $23,239   $16,296   $-   $24,838   $14,604 
                                         
Cash paid for income taxes  $416   $50   $-   $-   $156   $-   $-   $165 
Cash paid for interest expenses  $-   $-   $-   $2,993   $-   $3,644   $7,746   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $-   $-   $-   $326,070   $-   $330,000   $335,245   $- 
Bridge financing, related party for acquisition of property  $-   $-   $-   $305,663   $-   $318,000   $260,000   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $-   $-   $2,165   $-   $3,644   $6,988   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-92

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Liberty   Lithonia   Lola   Lucas   Macomber   Mallard   Marcy   Meridian 
Cash Flows from Operating Activities:                                
Net income (loss)  $(5,457)  $(18,446)  $7,429   $(594)  $(406)  $2,798   $3,558   $2,454 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   9,716    9,389    8,288    8,140    8,571    5,724    4,933    8,697 
Increase in assets                                        
Prepaid expenses   (308)   (115)   (415)   (382)   (502)   (73)   (277)   (154)
Due (from) to third party property managers   2,839    (6,052)   (5,333)   6,706    2,846    1,501    (10,691)   2,684 
Increase (decrease) in liabilities                                        
Accrued expenses   (3,373)   (2,663)   2,873    (3,295)   (2,113)   (2,140)   945    (2,069)
Tenant deposits   500    3,990    250    (2,495)   450    -    2,690    - 
Due to (from) related parties   6,767    1,146    1,720    8,468    590    (3,301)   2,328    2,109 
Net cash provided by (used in) operating activities   10,685    (12,751)   14,812    16,548    9,435    4,507    3,486    13,721 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   (13,749)   (10,745)   -    -    -    -    -    (8,575)
Net cash provided by (used in) investing activities   (13,749)   (10,745)   -    -    -    -    -    (8,575)
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   8,000    24,300    -    -    -    -    -    - 
Repayments of bridge financing, related party   -    -    -    -    -    -    -    - 
Redemption of membership units   -    (300)   -    -    -    -    -    - 
Distributions   (8,885)   (11,667)   (18,054)   (16,041)   (15,114)   (15,492)   (12,048)   (15,239)
Net cash provided by (used in) financing activities   (885)   12,333    (18,054)   (16,041)   (15,114)   (15,492)   (12,048)   (15,239)
                                         
Net change in cash   (3,950)   (11,162)   (3,242)   507    (5,679)   (10,986)   (8,562)   (10,093)
Cash at beginning of year   8,847    18,089    23,293    14,661    16,032    22,147    19,502    14,399 
Cash at end of year  $4,897   $6,926   $20,051   $15,168   $10,353   $11,162   $10,940   $4,306 
                                         
Cash paid for income taxes  $-   $-   $152   $-   $-   $-   $-   $- 
Cash paid for interest expenses  $60   $66   $-   $-   $-   $-   $-   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $-   $-   $-   $-   $-   $-   $-   $- 
Bridge financing, related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $3,192   $-   $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-93

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Metallo   Misty   Montgomery   Northbrook   Northridge   Oakland   Palmore   Pebblestone 
Cash Flows from Operating Activities:                                
Net income (loss)  $(7,680)  $(10,164)  $19   $(3,117)  $(10,170)  $(9,496)  $276   $3,740 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   -    -    7,441    7,744    6,481    8,444    6,911    8,510 
Increase in assets                                        
Prepaid expenses   -    -    (81)   (376)   (390)   (439)   (59)   (539)
Due (from) to third party property managers   -    (5,493)   (7,298)   (5,058)   (2,821)   (5,036)   (9,318)   (6,366)
Increase (decrease) in liabilities                                        
Accrued expenses   7,777    1,884    538    4,876    1,203    2,677    (1,730)   4,699 
Tenant deposits   -    5,190    2,468    1,895    2,543    2,445    -    2,795 
Due to (from) related parties   (97)   361,074    844    1,184    35,019    323,015    (2,734)   1,603 
Net cash provided by (used in) operating activities   -    352,490    3,932    7,147    31,865    321,611    (6,654)   14,442 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    (13,590)   -    -    -    -    - 
Net cash provided by (used in) investing activities   -    -    (13,590)   -    -    -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    10,700    -    -    -    -    - 
Repayments of bridge financing, related party   -    (327,000)   -    -    -    (291,650)   -    - 
Redemption of membership units   -    -    -    -    -    -    -    - 
Distributions   -    -    (5,904)   (12,872)   (12,586)   (11,779)   (10,149)   (19,593)
Net cash provided by (used in) financing activities   -    (327,000)   4,796    (12,872)   (12,586)   (303,429)   (10,149)   (19,593)
                                         
Net change in cash   -    25,490    (4,863)   (5,725)   19,278    18,181    (16,802)   (5,151)
Cash at beginning of year   -    -    9,225    22,111    -    474    20,957    19,914 
Cash at end of year  $-   $25,490   $4,362   $16,387   $19,278   $18,656   $4,155   $14,763 
                                         
Cash paid for income taxes  $-   $-   $-   $254   $-   $100   $-   $151 
Cash paid for interest expenses  $1,657   $3,270   $29   $-   $-   $8,263   $-   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $294,000   $345,000   $-   $-   $-   $-   $-   $- 
Bridge financing, related party for acquisition of property  $284,000   $327,000   $-   $-   $-   $291,650   $-   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $1,657   $1,226   $-   $-   $-   $7,656   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-94

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Perdita   Phoebe   Pongo   Portsmouth   Presidio   Rachel   Ratliff   Riverwood 
Cash Flows from Operating Activities:                                
Net income (loss)  $4,211   $(7,869)  $4,448   $5,557   $(16,120)  $(2,211)  $(424)  $2,731 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   9,121    7,000    9,121    5,864    -    7,943    8,789    10,040 
Increase in assets                                        
Prepaid expenses   (65)   (414)   (65)   (82)   -    (414)   (415)   (150)
Due (from) to third party property managers   3,137    (4,668)   4,574    934    -    (5,624)   (4,755)   (49)
Increase (decrease) in liabilities                                        
Accrued expenses   (1,933)   3,791    (2,206)   (3,481)   6,735    2,726    2,361    (2,349)
Tenant deposits   -    2,145    -    -    -    3,093    250    - 
Due to (from) related parties   1,824    290,913    1,524    (987)   9,384    26,398    2,055    2,382 
Net cash provided by (used in) operating activities   16,296    290,898    17,396    7,805    -    31,912    7,862    12,605 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    -    -    -    -    -    - 
Net cash provided by (used in) investing activities   -    -    -    -    -    -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    -    -    -    -    -    - 
Repayments of bridge financing, related party   -    (262,299)   -    -    -    -    -    - 
Redemption of membership units   -    -    -    (300)   -    -    -    - 
Distributions   (17,178)   (10,690)   (18,418)   (14,436)   -    (14,519)   (17,848)   (15,414)
Net cash provided by (used in) financing activities   (17,178)   (272,989)   (18,418)   (14,736)   -    (14,519)   (17,848)   (15,414)
                                         
Net change in cash   (882)   17,909    (1,022)   (6,931)   -    17,393    (9,986)   (2,810)
Cash at beginning of year   20,883    -    23,895    15,915    -    -    24,017    10,050 
Cash at end of year  $20,002   $17,909   $22,874   $8,984   $-   $17,393   $14,030   $7,240 
                                         
Cash paid for income taxes  $324   $100   $330   $-   $-   $100   $172   $- 
Cash paid for interest expenses  $-   $6,011   $-   $-   $2,338   $-   $-   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $-   $-   $-   $-   $242,000   $-   $-   $- 
Bridge financing, related party for acquisition of property  $-   $262,299   $-   $-   $229,000   $-   $-   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $5,246   $-   $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-95

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Roanoke   Robinson   Ross   Sansa   Sedgefield   Seneca   Sheezy   Sherwood 
Cash Flows from Operating Activities:                                
Net income (loss)  $9,592   $(8,226)  $5,241   $6,901   $(14,952)  $(8,355)  $4,205   $7,277 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   9,207    735    9,164    4,933    6,020    1,352    6,430    4,796 
Increase in assets                                        
Prepaid expenses   (179)   -    (527)   (277)   (418)   -    (97)   (56)
Due (from) to third party property managers   4,772    (4,012)   (5,844)   (7,285)   (3,123)   (3,692)   3,739    (8,790)
Increase (decrease) in liabilities                                        
Accrued expenses   (5,292)   4,094    3,704    (1,745)   3,242    3,770    (2,584)   (2,339)
Tenant deposits   -    2,345    2,545    1,395    3,243    2,695    -    - 
Due to (from) related parties   3,120    338,431    30,020    2,284    288,566    310,790    385    2,781 
Net cash provided by (used in) operating activities   21,219    333,366    44,304    6,206    282,580    306,560    12,078    3,670 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   -    -    -    -    -    -    -    - 
Net cash provided by (used in) investing activities   -    -    -    -    -    -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    -    -    -    -    -    - 
Repayments of bridge financing, related party   -    (307,000)   -    -    (250,000)   (280,155)   -    - 
Redemption of membership units   -    -    -    -    -    -    -    - 
Distributions   (21,419)   (1,579)   (20,947)   (12,411)   (9,092)   (2,992)   (16,151)   (11,648)
Net cash provided by (used in) financing activities   (21,419)   (308,579)   (20,947)   (12,411)   (259,092)   (283,147)   (16,151)   (11,648)
                                         
Net change in cash   (200)   24,787    23,357    (6,205)   23,488    23,414    (4,072)   (7,978)
Cash at beginning of year   22,821    -    -    19,502    -    -    18,930    16,955 
Cash at end of year  $22,621   $24,787   $23,357   $13,296   $23,488   $23,414   $14,858   $8,977 
                                         
Cash paid for income taxes  $-   $-   $100   $-   $-   $-   $702   $- 
Cash paid for interest expenses  $-   $3,134   $-   $-   $9,583   $2,743   $-   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $-   $321,450   $-   $-   $302,900   $294,900   $-   $- 
Bridge financing, related party for acquisition of property  $-   $307,000   $-   $-   $250,000   $280,155   $-   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $1,471   $-   $-   $7,917   $1,576   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-96

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Spangler   Summerglen   Tansel   Thomas   Tomlinson   Tytus   Vanzant   Watson 
Cash Flows from Operating Activities:                                
Net income (loss)  $(10,312)  $5,699   $5,851   $6,501   $(4,828)  $6,912   $(3,234)  $8,505 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                        
Depreciation   -    6,661    8,951    6,030    -    7,158    8,914    4,839 
Increase in assets                                        
Prepaid expenses   -    (147)   (274)   (43)   -    (69)   (357)   (54)
Due (from) to third party property managers   -    4,812    (12,722)   (205)   -    3,312    (9,324)   2,807 
Increase (decrease) in liabilities                                        
Accrued expenses   15,631    (4,437)   (3,015)   (2,044)   4,523    (2,240)   4,050    (2,653)
Tenant deposits   -    -    -    -    -    500    2,695    - 
Due to (from) related parties   989    (3,031)   7,637    (2,124)   304    1,785    30,578    (1,417)
Net cash provided by (used in) operating activities   6,308    9,557    6,429    8,115    -    17,359    33,322    12,027 
                                         
Cash Flows from Investing Activities                                        
Additions to property and equipment   (6,308)   -    -    -    -    -    -    - 
Net cash provided by (used in) investing activities   (6,308)   -    -    -    -    -    -    - 
                                         
Cash flows from financing activities                                        
Proceeds from operational notes, related party   -    -    -    -    -    -    -    - 
Repayments of bridge financing, related party   -    -    -    -    -    -    -    - 
Redemption of membership units   -    -    -    -    -    -    -    (300)
Distributions   -    (15,228)   (17,966)   (14,918)   -    (17,993)   (17,674)   (12,755)
Net cash provided by (used in) financing activities   -    (15,228)   (17,966)   (14,918)   -    (17,993)   (17,674)   (13,055)
                                         
Net change in cash   -    (5,671)   (11,537)   (6,803)   -    (635)   15,649    (1,028)
Cash at beginning of year   -    12,041    18,170    16,283    -    19,860    -    15,170 
Cash at end of year  $-   $6,370   $6,633   $9,480   $-   $19,226   $15,649   $14,142 
                                         
Cash paid for income taxes  $-   $410   $-   $-   $-   $-   $-   $- 
Cash paid for interest expenses  $3,168   $-   $-   $-   $2,368   $-   $-   $- 
                                         
Supplemental disclosure of non-cash investing and financing activities:                                        
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $382,000   $-   $-   $-   $245,000   $-   $-   $- 
Bridge financing, related party for acquisition of property  $362,000   $-   $-   $-   $232,000   $-   $-   $- 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $-   $-   $-   $-   $-   $-   $- 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-97

 

ARRIVED HOMES 3, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2024

 

 

   Westhaven   Wheeler   Williamson   Woodland   Woodwind   Wynde   Wyndhurst   Zane   Consolidated 
Cash Flows from Operating Activities:                                    
Net income (loss)  $(6,927)  $7,480   $9,046   $3,375   $(267)  $4,055   $(559)  $4,568   $(37,225)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                             
Depreciation   7,017    5,729    7,880    5,853    7,008    8,048    8,514    4,481    646,366 
Increase in assets                                             
Prepaid expenses   (70)   (66)   (68)   (66)   (28)   (159)   (461)   (67)   (19,637)
Due (from) to third party property managers   6,126    3,186    3,823    2,996    104    3,033    (886)   2,545    (80,024)
Increase (decrease) in liabilities                                             
Accrued expenses   (2,450)   (2,010)   (4,791)   (1,808)   (3,508)   (2,086)   (498)   (1,591)   (2,568)
Tenant deposits   (1,098)   -    250    -    -    750    -    -    74,537 
Due to (from) related parties   (1,853)   (3,094)   123    2,746    (1,274)   (2,812)   29,177    289    3,054,076 
Net cash provided by (used in) operating activities   744    11,225    16,263    13,095    2,035    10,828    35,286    10,224    3,635,525 
                                              
Cash Flows from Investing Activities                                             
Additions to property and equipment   -    -    -    -    -    -    -    -    (61,668)
Net cash provided by (used in) investing activities   -    -    -    -    -    -    -    -    (61,668)
                                              
Cash flows from financing activities                                             
Proceeds from operational notes, related party   -    -    -    -    -    -    -    -    78,300 
Repayments of bridge financing, related party   -    -    -    -    -    -    -    -    (2,559,267)
Redemption of membership units   (300)   -    -    -    -    -    -    -    (3,700)
Distributions   (12,496)   (15,248)   (18,583)   (11,444)   (12,513)   (11,513)   (12,300)   (12,298)   (1,182,761)
Net cash provided by (used in) financing activities   (12,796)   (15,248)   (18,583)   (11,444)   (12,513)   (11,513)   (12,300)   (12,298)   (3,667,428)
                                              
Net change in cash   (12,053)   (4,023)   (2,320)   1,651    (10,477)   (686)   22,986    (2,074)   (93,571)
Cash at beginning of year   18,441    18,711    22,367    3,099    14,885    4,736    -    18,061    1,223,390 
Cash at end of year  $6,388   $14,689   $20,047   $4,751   $4,408   $4,051   $22,986   $15,987   $1,129,818 
                                              
Cash paid for income taxes  $-   $-   $-   $-   $-   $-   $50   $-   $9,042 
Cash paid for interest expenses  $-   $-   $-   $-   $-   $-   $-   $-   $72,115 
                                              
Supplemental disclosure of non-cash investing and financing activities:                                             
Advance from related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $-   $- 
Acquisition of property purchase price  $-   $-   $-   $-   $-   $-   $-   $-   $4,392,695 
Bridge financing, related party for acquisition of property  $-   $-   $-   $-   $-   $-   $-   $-   $4,908,950 
Deemed contribution from manager for forgiveness of amounts due to manager  $-   $-   $-   $-   $-   $-   $-   $-   $51,247 

 

The accompanying notes are an integral part of these consolidated and consolidating financial statements.

 

F-98

 

ARRIVED HOMES 3, LLC AND ITS SERIES

NOTES TO THE CONSOLIDATED AND CONSOLIDATING FINANCIAL STATEMENTS

 

 

NOTE 1: NATURE OF OPERATIONS

 

Arrived Homes 3, LLC (the “Company”) is a Delaware series limited liability company formed on January 4, 2023 under the laws of Delaware. Arrived Homes 3, LLC was formed to permit public investment in individual single family rental homes, each of which will be held by a separate property-owning subsidiary owned by a separate series of limited liability interests or series, that Arrived Fund Manager, LLC (the “manager”) establishes. As a Delaware series limited liability company, the debts, liabilities, obligations, and expenses incurred, contracted for or otherwise existing with respect to a particular series are segregated and enforceable only against the assets of such series, as provided under Delaware law.

 

The following list represents each Arrived Homes 3, LLC’s series and the wholly-owned limited liability company, which was used to acquire the single family rental property for each series, along with the date the series was formed and the date the series LLC acquired the single family rental property.

 

Series Name  Name of the wholly-owned subsidiary of the Series  Date Formed  Acquisition Date
Arrived Series Adams, a series of Arrived Homes 3, LLC (Arrived Series Adams)  Arrived TN Adams, LLC  10/28/2024  11/12/2024
Arrived Series Antares, a series of Arrived Homes 3, LLC (Arrived Series Antares)  Arrived GA Antares, LLC  4/24/2023  5/5/2023
Arrived Series Aramis, a series of Arrived Homes 3, LLC (Arrived Series Aramis)  Arrived GA Aramis, LLC  4/27/2023  5/4/2023
Arrived Series Arkoma, a series of Arrived Homes 3, LLC (Arrived Series Arkoma)  Arrived AR Arkoma, LLC  4/6/2023  4/18/2023
Arrived Series Arya, a series of Arrived Homes 3, LLC (Arrived Series Arya)  Arrived AR Arya, LLC  9/27/2023  10/18/2023
Arrived Series Aspen, a series of Arrived Homes 3, LLC (Arrived Series Aspen)  Arrived GA Aspen, LLC  2/27/2023  3/16/2023
Arrived Series Athos, a series of Arrived Homes 3, LLC (Arrived Series Athos)  Arrived GA Athos, LLC  4/27/2023  5/9/2023
Arrived Series Barclay, a series of Arrived Homes 3, LLC (Arrived Series Barclay)  Arrived NC Barclay, LLC  4/17/2023  4/26/2023
Arrived Series Bayne, a series of Arrived Homes 3, LLC (Arrived Series Bayne)  Arrived TN Bayne, LLC  10/28/2024  11/20/2024
Arrived Series Bean, a series of Arrived Homes 3, LLC (Arrived Series Bean)  Arrived TN Bean, LLC  2/23/2023  9/13/2023
Arrived Series Bennett, a series of Arrived Homes 3, LLC (Arrived Series Bennett)  Arrived GA Bennett, LLC  2/27/2023  3/16/2023
Arrived Series Benny, a series of Arrived Homes 3, LLC (Arrived Series Benny)  Arrived OK Benny, LLC  2/22/2023  3/21/2023
Arrived Series Bluebell, a series of Arrived Homes 3, LLC (Arrived Series Bluebell)  Arrived KY Bluebell, LLC  4/6/2023  5/4/2023
Arrived Series Bowling, a series of Arrived Homes 3, LLC (Arrived Series Bowling)  Arrived Series Bowling, a series of Arrived Homes 3, LLC  12/7/2022  2/14/2023
Arrived Series Boxwood, a series of Arrived Homes 3, LLC (Arrived Series Boxwood)  Arrived MS Boxwood, LLC  10/28/2024  11/20/2024
Arrived Series Bradford, a series of Arrived Homes 3, LLC (Arrived Series Bradford)  Arrived NC Bradford, LLC  4/6/2023  4/25/2023
Arrived Series Brookwood, a series of Arrived Homes 3, LLC (Arrived Series Brookwood)  Arrived GA Brookwood, LLC  2/27/2023  3/9/2023

 

F-99

 

Series Name  Name of the wholly-owned subsidiary
of the Series		  Date Formed  Acquisition Date
Arrived Series Bryant, a series of Arrived Homes 3, LLC (Arrived Series Bryant)  Arrived GA Bryant, LLC  3/21/2023  4/20/2023
Arrived Series Caden, a series of Arrived Homes 3, LLC (Arrived Series Caden)  Arrived Series Caden, a series of Arrived Homes 3, LLC  1/23/2023  2/21/2023
Arrived Series Camellia, a series of Arrived Homes 3, LLC (Arrived Series Camellia)  Arrived Series Camellia, a series of Arrived Homes 3, LLC  1/23/2023  2/14/2023
Arrived Series Caterpillar, a series of Arrived Homes 3, LLC (Arrived Series Caterpillar)  Arrived FL Caterpillar, LLC  4/21/2023  5/2/2023
Arrived Series Chilhowee, a series of Arrived Homes 3, LLC (Arrived Series Chilhowee)  Arrived TN Chilhowee, LLC  12/21/2022  1/21/2023
Arrived Series Claremore, a series of Arrived Homes 3, LLC (Arrived Series Claremore)  Arrived OK Claremore, LLC  2/17/2023  4/27/2023
Arrived Series Collinison, a series of Arrived Homes 3, LLC (Arrived Series Collinison)  Arrived TN Collinison, LLC  10/30/2023  11/15/2023
Arrived Series Cordero, a series of Arrived Homes 3, LLC (Arrived Series Cordero)  Arrived NM Cordero, LLC  1/24/2023  4/18/2023
Arrived Series Cristalino, a series of Arrived Homes 3, LLC (Arrived Series Cristalino)  Arrived NM Cristalino, LLC  12/21/2022  2/13/2023
Arrived Series Ellie, a series of Arrived Homes 3, LLC (Arrived Series Ellie)  Arrived TN Ellie, LLC  9/11/2023  9/13/2023
Arrived Series Emelina, a series of Arrived Homes 3, LLC (Arrived Series Emelina)  Arrived Series Emelina, a series of Arrived Homes 3, LLC  1/10/2023  2/8/2023
Arrived Series Ethan, a series of Arrived Homes 3, LLC (Arrived Series Ethan)  Arrived Series Ethan, a series of Arrived Homes 3, LLC  3/16/2023  4/27/2023
Arrived Series Frances, a series of Arrived Homes 3, LLC (Arrived Series Frances)  Arrived MS Frances, LLC  10/18/2023  12/6/2023
Arrived Series Glenncrest, a series of Arrived Homes 3, LLC (Arrived Series Glenncrest)  Arrived Series Glenncrest, a series of Arrived Homes 3, LLC  11/1/2023  11/15/2023
Arrived Series Gordon, a series of Arrived Homes 3, LLC (Arrived Series Gordon)  Arrived GA Gordon, LLC  3/21/2023  4/11/2023
Arrived Series Haikey, a series of Arrived Homes 3, LLC (Arrived Series Haikey)  Arrived OK Haikey, LLC  2/17/2023  5/17/2023
Arrived Series Hamblen, a series of Arrived Homes 3, LLC (Arrived Series Hamblen)  Arrived TN Hamblen, LLC  3/10/2023  3/30/2023
Arrived Series Hancock, a series of Arrived Homes 3, LLC (Arrived Series Hancock)  Arrived GA Hancock, LLC  3/28/2023  4/27/2023
Arrived Series Hardman, a series of Arrived Homes 3, LLC (Arrived Series Hardman)  Arrived TN Hardman, LLC  10/24/2023  11/2/2023
Arrived Series Haven, a series of Arrived Homes 3, LLC (Arrived Series Haven)  Arrived Series Haven, a series of Arrived Homes 3, LLC  11/30/2022  2/21/2023
Arrived Series Haverhill, a series of Arrived Homes 3, LLC (Arrived Series Haverhill)  Arrived GA Haverhill, LLC  2/27/2023  3/16/2023
Arrived Series Haybridge, a series of Arrived Homes 3, LLC (Arrived Series Haybridge)  Arrived NC Haybridge, LLC  9/28/2023  10/18/2023
Arrived Series Hedgecrest, a series of Arrived Homes 3, LLC (Arrived Series Hedgecrest)  Arrived NC Hedgecrest, LLC  9/28/2023  10/18/2023
Arrived Series Helmerich, a series of Arrived Homes 3, LLC (Arrived Series Helmerich)  Arrived OK Helmerich, LLC  2/17/2023  4/19/2023
Arrived Series Hermanos, a series of Arrived Homes 3, LLC (Arrived Series Hermanos)  Arrived NM Hermanos, LLC  12/22/2022  1/31/2023
Arrived Series Holmes, a series of Arrived Homes 3, LLC (Arrived Series Holmes)  Arrived AR Holmes, LLC  3/7/2023  3/29/2023
Arrived Series Johnson, a series of Arrived Homes 3, LLC (Arrived Series Johnson)  Arrived TN Johnson, LLC  6/20/2024  6/26/2024
Arrived Series Keystone, a series of Arrived Homes 3, LLC (Arrived Series Keystone)  Arrived TN Keystone, LLC  10/31/2023  12/6/2023
Arrived Series Langley, a series of Arrived Homes 3, LLC (Arrived Series Langley)  Arrived VA Langley, LLC  10/23/2024  11/6/2024
Arrived Series Laurel, a series of Arrived Homes 3, LLC (Arrived Series Laurel)  Arrived TN Laurel, LLC  1/19/2024  1/24/2024

 

F-100

 

Series Name  Name of the wholly-owned subsidiary of the Series  Date Formed  Acquisition Date
Arrived Series Layla, a series of Arrived Homes 3, LLC (Arrived Series Layla)  Arrived TN Layla, LLC  10/23/2023  11/15/2023
Arrived Series Liberty, a series of Arrived Homes 3, LLC (Arrived Series Liberty)  Arrived GA Liberty, LLC  3/10/2023  4/25/2023
Arrived Series Lithonia, a series of Arrived Homes 3, LLC (Arrived Series Lithonia)  Arrived GA Lithonia, LLC  2/27/2023  3/16/2023
Arrived Series Lola, a series of Arrived Homes 3, LLC (Arrived Series Lola)  Arrived TN Lola, LLC  10/23/2023  11/15/2023
Arrived Series Lucas, a series of Arrived Homes 3, LLC (Arrived Series Lucas)  Arrived GA Lucas, LLC  3/21/2023  4/20/2023
Arrived Series Macomber, a series of Arrived Homes 3, LLC (Arrived Series Macomber)  Arrived GA Macomber, LLC  3/28/2023  5/2/2023
Arrived Series Mallard, a series of Arrived Homes 3, LLC (Arrived Series Mallard)  Arrived Series Mallard, a series of Arrived Homes 3, LLC  3/16/2023  4/28/2023
Arrived Series Marcy, a series of Arrived Homes 3, LLC (Arrived Series Marcy)  Arrived AR Marcy, LLC  9/27/2023  10/18/2023
Arrived Series Meridian, a series of Arrived Homes 3, LLC (Arrived Series Meridian)  Arrived Series Meridian, a series of Arrived Homes 3, LLC  3/28/2023  4/21/2023
Arrived Series Metallo, a series of Arrived Homes 3, LLC (Arrived Series Metallo)  Arrived AR Metallo, LLC  11/18/2024  12/4/2024
Arrived Series Misty, a series of Arrived Homes 3, LLC (Arrived Series Misty)  Arrived MO Misty, LLC  10/29/2024  11/13/2024
Arrived Series Montgomery, a series of Arrived Homes 3, LLC (Arrived Series Montgomery)  Arrived Series Montgomery, a series of Arrived Homes 3, LLC  2/28/2023  3/22/2023
Arrived Series Northbrook, a series of Arrived Homes 3, LLC (Arrived Series Northbrook)  Arrived MS Northbrook, LLC  10/18/2023  11/20/2023
Arrived Series Northridge, a series of Arrived Homes 3, LLC (Arrived Series Northridge)  Arrived KY Northridge, LLC  11/21/2023  12/13/2023
Arrived Series Oakland, a series of Arrived Homes 3, LLC (Arrived Series Oakland)  Arrived TN Oakland, LLC  10/19/2023  10/25/2023
Arrived Series Palmore, a series of Arrived Homes 3, LLC (Arrived Series Palmore)  Arrived Series Palmore, a series of Arrived Homes 3, LLC  1/26/2023  2/23/2023
Arrived Series Pebblestone, a series of Arrived Homes 3, LLC (Arrived Series Pebblestone)  Arrived TN Pebblestone, LLC  10/31/2023  12/6/2023
Arrived Series Perdita, a series of Arrived Homes 3, LLC (Arrived Series Perdita)  Arrived NC Perdita, LLC  4/17/2023  4/27/2023
Arrived Series Phoebe, a series of Arrived Homes 3, LLC (Arrived Series Phoebe)  Arrived TN Phoebe, LLC  12/13/2023  12/27/2023
Arrived Series Pongo, a series of Arrived Homes 3, LLC (Arrived Series Pongo)  Arrived NC Pongo, LLC  4/17/2023  4/27/2023
Arrived Series Portsmouth, a series of Arrived Homes 3, LLC (Arrived Series Portsmouth)  Arrived VA Portsmouth, LLC  3/2/2023  3/15/2023
Arrived Series Presidio, a series of Arrived Homes 3, LLC (Arrived Series Presidio)  Arrived IN Presidio, LLC  10/28/2024  11/13/2024
Arrived Series Rachel, a series of Arrived Homes 3, LLC (Arrived Series Rachel)  Arrived TN Rachel, LLC  11/1/2023  11/29/2023
Arrived Series Ratliff, a series of Arrived Homes 3, LLC (Arrived Series Ratliff)  Arrived TN Ratliff, LLC  10/19/2023  10/25/2023
Arrived Series Riverwood, a series of Arrived Homes 3, LLC (Arrived Series Riverwood)  Arrived GA Riverwood, LLC  3/21/2023  4/26/2023
Arrived Series Roanoke, a series of Arrived Homes 3, LLC (Arrived Series Roanoke)  Arrived VA Roanoke, LLC  4/28/2023  5/11/2023

 

F-101

 

Series Name  Name of the wholly-owned subsidiary
of the Series		  Date Formed  Acquisition Date
Arrived Series Robinson, a series of Arrived Homes 3, LLC (Arrived Series Robinson)  Arrived MS Robinson, LLC  9/5/2024  10/9/2024
Arrived Series Ross, a series of Arrived Homes 3, LLC (Arrived Series Ross)  Arrived TN Ross, LLC  11/1/2023  11/29/2023
Arrived Series Sansa, a series of Arrived Homes 3, LLC (Arrived Series Sansa)  Arrived AR Sansa, LLC  9/27/2023  10/18/2023
Arrived Series Sedgefield, a series of Arrived Homes 3, LLC (Arrived Series Sedgefield)  Arrived NC Sedgefield, LLC  1/22/2024  1/31/2024
Arrived Series Seneca, a series of Arrived Homes 3, LLC (Arrived Series Seneca)  Arrived KY Seneca, LLC  8/23/2024  9/4/2024
Arrived Series Sheezy, a series of Arrived Homes 3, LLC (Arrived Series Sheezy)  Arrived TN Sheezy, LLC  11/30/2022  1/21/2023
Arrived Series Sherwood, a series of Arrived Homes 3, LLC (Arrived Series Sherwood)  Arrived AR Sherwood, LLC  3/28/2023  4/25/2023
Arrived Series Spangler, a series of Arrived Homes 3, LLC (Arrived Series Spangler)  Arrived KY Spangler, LLC  10/30/2024  11/20/2024
Arrived Series Summerglen, a series of Arrived Homes 3, LLC (Arrived Series Summerglen)  Arrived OK Summerglen, LLC  2/17/2023  3/29/2023
Arrived Series Tansel, a series of Arrived Homes 3, LLC (Arrived Series Tansel)  Arrived GA Tansel, LLC  4/18/2023  4/26/2023
Arrived Series Thomas, a series of Arrived Homes 3, LLC (Arrived Series Thomas)  Arrived GA Thomas, LLC  2/27/2023  3/16/2023
Arrived Series Tomlinson, a series of Arrived Homes 3, LLC (Arrived Series Tomlinson)  Arrived KY Tomlinson, LLC  10/30/2024  11/13/2024
Arrived Series Tytus, a series of Arrived Homes 3, LLC (Arrived Series Tytus)  Arrived OH Tytus, LLC  4/13/2023  4/27/2023
Arrived Series Vanzant, a series of Arrived Homes 3, LLC (Arrived Series Vanzant)  Arrived AR Vanzant, LLC  11/29/2023  12/6/2023
Arrived Series Watson, a series of Arrived Homes 3, LLC (Arrived Series Watson)  Arrived AR Watson, LLC  3/7/2023  3/29/2023
Arrived Series Westhaven, a series of Arrived Homes 3, LLC (Arrived Series Westhaven)  Arrived VA Westhaven, LLC  3/2/2023  3/31/2023
Arrived Series Wheeler, a series of Arrived Homes 3, LLC (Arrived Series Wheeler)  Arrived Series Wheeler, a series of Arrived Homes 3, LLC  3/6/2023  3/31/2023
Arrived Series Williamson, a series of Arrived Homes 3, LLC (Arrived Series Williamson)  Arrived VA Williamson, LLC  3/2/2023  5/8/2023
Arrived Series Woodland, a series of Arrived Homes 3, LLC (Arrived Series Woodland)  Arrived Series Woodland, a series of Arrived Homes 3, LLC  3/21/2023  4/19/2023
Arrived Series Woodwind, a series of Arrived Homes 3, LLC (Arrived Series Woodwind)  Arrived GA Woodwind, LLC  2/27/2023  3/9/2023
Arrived Series Wynde, a series of Arrived Homes 3, LLC (Arrived Series Wynde)  Arrived Series Wynde, a series of Arrived Homes 3, LLC  3/28/2023  4/26/2023
Arrived Series Wyndhurst, a series of Arrived Homes 3, LLC (Arrived Series Wyndhurst)  Arrived Series Wyndhurst, a series of Arrived Homes 3, LLC  11/17/2023  11/29/2023
Arrived Series Zane, a series of Arrived Homes 3, LLC (Arrived Series Zane)  Arrived Series Zane, a series of Arrived Homes 3, LLC  4/13/2023  5/5/2023

 

F-102

 

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”). The Company has adopted a calendar year as its fiscal year.

 

The Company is an emerging growth company as the term is used in the Jumpstart Our Business Startups Act, enacted on April 5, 2012, and has elected to comply with certain reduced public company reporting requirements, however, the Company may adopt accounting standards based on the effective dates for public entities.

 

Principles of Consolidation

 

These consolidated and consolidating financial statements include the accounts of Arrived Homes 3, LLC and its series. All inter-company transactions and balances have been eliminated upon consolidation.

 

Use of Estimates

 

The preparation of the consolidated and consolidating financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the consolidated and consolidating financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates.

 

Deferred Offering Costs

 

The Company complies with the requirements of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 340-10-S99-1 with regard to offering costs. Prior to the completion of an offering, offering costs are capitalized. The deferred offering costs are charged to members’ equity upon the completion of an offering or to expense if the offering is not completed. Offering costs include offering expense reimbursements and sourcing fees as noted below.

 

Per the operating agreement, the manager is eligible to receive up to a maximum of 2% of the gross offering proceeds per the series offering, as reimbursement for offering expenses including legal, accounting, escrow, underwriting, filing and compliance costs, as applicable, related to a specific offering.

 

Upon completion of an offering, the series may also be required to pay the manager sourcing fees as defined in the offering documents. The manager is responsible for sourcing and analyzing the series’ property.

 

Fair Value of Financial Instruments

 

FASB guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows:

 

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities.

 

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active).

 

Level 3 - Unobservable inputs for the asset or liability. Financial instruments are considered Level 3 when their fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable.

 

F-103

 

The carrying amounts of the Company’s consolidated and consolidating financial instruments, such as cash and accrued expenses, approximate fair value due to the short-term nature of these instruments. The carrying value of the mortgage payables approximate their fair values based on interest rates and terms currently available for similar instruments.

 

Management Compensation

 

The manager will receive from each series an annual asset management fee equal to six tenths of a percent (0.6%) of the purchase price of the series property, paid out of the net operating rental income of the series on a quarterly basis. Additionally, pursuant to the operating agreement, the manager will receive reimbursements for out-of-pocket expenses in connection with the Company’s organization and offerings (up to a maximum of 2% of the gross offering proceeds per series offering) and in connection with the Company’s operations and the acquisition of properties and in connection with third parties providing services to the Company. The manager may also receive a portion of the property management fee, which will be equal to the difference between 8% and the amount actually charged by the property manager when the series is occupied, and the property disposition fee as described below. With respect to the operating accounts for each series that the manager maintains with a third-party bank, the manager will be entitled to receive any interest earned on the cash balances in such accounts. The manager reserves the right to waive any fees or reimbursements it is due in its sole discretion.

 

Property Management Fee

 

The Company will appoint an affiliate of the manager or a third-party property management company to serve as property manager to manage the property of each series pursuant to a property management agreement. The fee arrangement for the third-party property management company is set forth below:

 

Marketplace Homes

 

As compensation for the services provided by the third-party property manager, Marketplace Homes, each series will be charged a property management fee of $70 on a monthly basis and paid to the property manager pursuant to the property management agreement.

 

Mynd Property Management

  

As compensation for the services provided by the property manager, each series will be charged a property management fee equal to six percent (6%) of all rents and fees as remitted to the series or a minimum property management fee of $84 on a monthly basis and paid to the property manager pursuant to the property management agreement.

 

Property Disposition Fee

 

Upon the disposition and sale of the series property, the manager will charge the series a market rate property disposition fee that will cover property sale expenses such as brokerage commissions, title, escrow and closing costs. It is expected that the disposition fee charged to the series will range from six to seven percent of the property sale price. To the extent that the actual property disposition fees are less than the amount charged to the series, the manager will receive the difference.

 

Prepaid and Accrued Expenses

 

Prepaid expenses consist of prepaid insurance. Accrued expenses include accrued property taxes, audit and tax fees, and interest payable on the series’ mortgage.

 

F-104

 

Due From (To) Third-party Property Managers

 

Due from (to) third-party property managers are uncollateralized obligations due under normal trade terms generally requiring payment within 30 days from the approved prior month financial statements. Due from (to) property managers are presented net of receipts and expenses for the reported month. The Company uses a loss-rate approach based on historical loss information, adjusted for management’s expectations about current and future economic conditions, as the basis to determine expected cash receipts and distributions. Management exercises significant judgment in determining expected credit losses. Key inputs include macroeconomic factors, industry trends, and the creditworthiness of counterparties. Management believes that the composition of receivables at year-end is consistent with historical conditions as credit terms and practices and the property managers have not changed significantly. The Company and series determined it was not necessary to record an allowance for credit losses as of December 31, 2025 and 2024.

 

Property and Equipment

 

Property and equipment are stated at cost less accumulated depreciation. The Company’s property and equipment includes the cost of the purchased property, including the building and related land. The Company allocates certain capitalized title fees and relevant acquisition expenses to the capitalized costs of the building. All capitalized property costs, except for the value attributable to the land, are depreciated using the straight-line method over the estimated useful life of 27.5 years. Additions and property improvements in excess of $5,000 are capitalized and depreciated using the straight-line method over the estimated useful lives of 5-7 years, while routine repairs and maintenance are charged to expense as incurred. At the time of retirement or other disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated and consolidating statements of comprehensive income (loss).

 

Insurance claim proceeds related to property damage are recognized in the consolidated statement of comprehensive income (loss) in the period in which the proceeds are received.

 

Impairment of Long-Lived Assets

 

The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. The Company did not record any impairment losses on long-lived assets for the years ended December 31, 2025 and 2024.

 

Tenant Deposits

 

Tenant deposit liabilities represent security deposits received by tenant customers.

 

Operating Expenses

 

The series is responsible for the costs and expenses attributable to the activities of the series. The manager will bear its own expenses of an ordinary nature. If the operating expenses exceed the amount of revenues generated from a series property and cannot be covered by any operating expense reserves on the balance sheet of the series, the manager may (a) pay such operating expenses and not seek reimbursement, in which case the expenses would be recognized by the series with a credit to contributed capital. (b) loan the amount of the operating expenses to the series, on which the manager may impose a reasonable rate of interest and be entitled to reimbursement of such amount from future revenues generated by a series property, and/or (c) cause additional interests to be issued in the series in order to cover such additional amounts. 

 

F-105

 

Revenue Recognition

 

The Company adopted FASB ASC 606, Revenue from Contracts with Customers, and its related amendments, effective at inception using the modified retrospective transition approach applied to all contracts. There were no cumulative impacts that were made. The Company determines revenue recognition through the following steps:

 

  ● Identification of a contract with a customer;

 

  ● Identification of the performance obligations in the contract;

 

  ● Determination of the transaction price;

 

  ● Allocation of the transaction price to the performance obligations in the contract; and

 

  ● Recognition of revenue when or as the performance obligations are satisfied.

 

Revenue is recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. As a practical expedient, the Company does not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between customer payment and the transfer of goods or services is expected to be one year or less.

 

The Company’s series operate rental properties and recognize rental revenue on a monthly basis as it is earned. Revenue from leasing arrangements falls outside the scope of FASB ASC 606 and is accounted for under the provisions of FASB ASC 842.

 

Comprehensive Income (loss)

 

The Company follows FASB ASC 220 in reporting comprehensive income (loss). Comprehensive income (loss) is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income (loss). Since the Company has no items of other comprehensive income (loss), comprehensive income (loss) is equal to net income (loss).

 

Organizational Costs

 

In accordance with FASB ASC 720, Organizational Costs, accounting fees, legal fees, and costs of incorporation are expensed as incurred.

 

Income Taxes

 

The Company is organized as an LLC for legal purposes and has elected to be treated as a C corporation for tax purposes, pursuant to subchapter C of the Internal Revenue Code.

 

Furthermore, each series complies with the requirements to be a Real Estate Investment Trust (“REIT”), a special type of C corporation that files tax form 1120-REIT. A REIT may not be required to pay income tax at the corporate level because this form of corporation is permitted to deduct dividends paid to members as an expense. Therefore, if a REIT paid out all profit and capital gains to its members, it could potentially report no taxable income. Tax losses of REITs are not allocated directly to members but, under current law, losses may be accumulated and carried forward indefinitely and be used to offset up to 80% of taxable income in any future year, thereby reducing the reported taxable income of the REIT.

 

Most states give REITs a deduction for dividends paid. Since the series generally pay dividends in excess of the taxable income generated, there would be no state tax liability in these states. In states that do not give a deduction for dividends paid, there may be a state income tax due that is assessed based on the tax table for that particular state. There is no state tax liability for members based on the locations of properties held in the REITs. The rules for state tax loss carryforwards vary by state as some conform to the Federal rules while others have restrictions on timeframes and/or the percentage of loss that can be carried forward.

 

F-106

 

Recently Issued and Recently Adopted Accounting Pronouncements

 

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, as modified by FASB ASU No. 2019-10 and other subsequently issued related ASUs. The amendments in this Update affect loans, debt securities, trade receivables, and any other financial assets that have the contractual right to receive cash. The ASU requires an entity to recognize expected credit losses rather than incurred losses for financial assets. The amendments in this Update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted this new guidance upon inception utilizing the modified retrospective transition method. The adoption of this standard did not have a material impact on the Company’s consolidated and consolidating financial statements, but did change how the allowance for credit losses is determined.

 

In November 2024, the FASB issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which requires the disaggregated disclosure of specific expense categories, including purchases of inventory, employee compensation, depreciation, and amortization included in each relevant expense caption presented on the statement of operations. The standard also requires disclosure of a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, as well as the total amount of selling expenses and an entity’s definition of selling expenses. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. The Company is currently evaluating the impact this standard will have on its financial statements.

 

Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying consolidated and consolidating financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.

 

NOTE 3: GOING CONCERN

 

The accompanying consolidated and consolidating financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has a lack of liquidity and limited cash. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time. The Company’s ability to continue as a going concern for a period of one year from the issuance of these consolidated and consolidating financial statements is dependent upon their ability to generate cash flow from their rental activity and/or obtain financing from the manager. However, there are no assurances that the Company can be successful in generating cash flow from their rental activities or that the manager will always be in the position to provide funding when needed. The consolidated and consolidating financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

F-107

 

NOTE 4: PROPERTY AND EQUIPMENT

 

Property and equipment, net consists of the following:

 

December 31, 2025 
                         
Series  Building   Land   Property Improvements   Total   Less:  Accumulated Depreciation   Property and equipment, net 
Adams  $230,829   $76,000   $-   $306,829   $(8,394)  $298,435 
Antares   234,124    78,041    -    312,165    (21,284)   290,881 
Aramis   226,769    75,590    -    302,358    (20,615)   281,743 
Arkoma   178,459    59,486    -    237,946    (16,764)   221,181 
Arya   135,657    45,219    -    180,876    (10,277)   170,599 
Aspen   202,343    67,448    -    269,791    (19,621)   250,169 
Athos   219,648    73,216    5,840    298,704    (22,499)   276,205 
Barclay   231,439    77,146    -    308,585    (21,741)   286,843 
Bayne   264,381    86,906    -    351,287    (9,614)   341,673 
Bean   221,579    73,860    -    295,438    (17,458)   277,980 
Bennett   160,052    53,351    -    213,402    (15,520)   197,882 
Benny   192,665    64,222    -    256,887    (18,683)   238,204 
Bluebell   225,920    75,307    -    301,226    (20,538)   280,688 
Bowling   157,406    52,469    -    209,875    (15,741)   194,134 
Boxwood   243,102    81,248    -    324,350    (8,840)   315,510 
Bradford   229,997    76,666    -    306,663    (21,599)   285,064 
Brookwood   211,955    70,652    -    282,607    (20,553)   262,054 
Bryant   211,467    70,489    5,470    287,426    (22,600)   264,826 
Caden   189,056    63,019    -    252,075    (18,906)   233,169 
Camellia   192,475    64,158    13,114    269,747    (25,659)   244,088 
Caterpillar   226,811    75,604    -    302,414    (20,619)   281,795 
Chilhowee   245,882    80,960    -    326,842    (26,079)   300,764 
Claremore   177,773    59,258    -    237,030    (16,700)   220,330 
Collinison   228,338    75,250    5,140    308,728    (17,634)   291,094 
Cordero   190,960    63,653    21,346    275,959    (20,009)   255,950 
Cristalino   232,382    77,461    -    309,843    (23,238)   286,605 
Ellie   217,159    72,386    -    289,546    (17,110)   272,436 
Emelina   188,311    62,770    6,975    258,056    (22,551)   235,505 
Ethan   146,204    48,735    14,886    209,824    (19,189)   190,635 
Frances   211,050    69,498    -    280,547    (14,709)   265,838 
Glenncrest   219,509    72,500    -    292,009    (15,964)   276,045 
Gordon   193,167    64,389    -    257,556    (18,146)   239,410 
Haikey   185,216    61,739    -    246,955    (16,838)   230,117 
Hamblen   193,966    64,655    -    258,621    (18,809)   239,812 
Hancock   204,015    68,005    5,175    277,195    (21,753)   255,442 
Hardman   292,918    97,639    -    390,558    (21,303)   369,255 
Haven   140,196    46,732    -    186,928    (14,020)   172,908 
Haverhill   177,351    59,117    -    236,468    (17,198)   219,271 
Haybridge   271,195    90,398    -    361,593    (20,545)   341,048 
Hedgecrest   271,195    90,398    6,073    367,666    (21,557)   346,109 
Helmerich   190,433    63,478    -    253,910    (17,889)   236,021 
Hermanos   232,856    77,619    16,803    327,278    (32,778)   294,500 
Holmes   133,058    44,353    -    177,411    (12,903)   164,508 
Johnson   248,064    81,518    -    329,582    (12,779)   316,802 
Keystone   263,140    86,695    -    349,835    (18,340)   331,495 
Langley   250,762    83,750    -    334,512    (9,119)   325,393 
Laurel   254,681    83,811    -    338,492    (16,979)   321,514 
Layla   244,911    81,637    -    326,548    (17,812)   308,736 
Liberty   189,606    63,202    20,979    273,787    (25,672)   248,115 
Lithonia   213,879    71,293    10,745    295,917    (24,501)   271,416 
Lola   227,929    75,976    5,432    309,337    (17,120)   292,217 
Lucas   192,650    64,217    5,675    262,542    (20,367)   242,175 

 

F-108

 

Series  Building   Land   Property Improvements   Total   Less: Accumulated Depreciation   Property and equipment, net 
Macomber   207,833    69,278    5,068    282,178    (21,343)   260,834 
Mallard   157,399    52,466    -    209,866    (14,786)   195,079 
Marcy   135,657    45,219    -    180,876    (10,277)   170,599 
Meridian   199,873    66,624    8,575    275,072    (21,920)   253,152 
Metallo   220,432    74,750    -    295,182    (7,348)   287,835 
Misty   259,742    86,250    -    345,992    (9,445)   336,547 
Montgomery   154,790    51,597    13,590    219,977    (19,540)   200,437 
Northbrook   212,953    70,984    -    283,937    (15,487)   268,450 
Northridge   194,437    67,475    -    261,912    (13,552)   248,360 
Oakland   232,207    77,402    -    309,609    (17,592)   292,018 
Palmore   151,605    50,535    6,990    209,131    (18,190)   190,941 
Pebblestone   255,302    84,106    -    339,409    (17,794)   321,615 
Perdita   250,821    83,607    -    334,428    (23,562)   310,866 
Phoebe   210,002    69,026    -    279,028    (14,637)   264,391 
Pongo   250,821    83,607    -    334,428    (23,562)   310,866 
Portsmouth   161,270    53,757    5,989    221,015    (16,636)   204,378 
Presidio   180,825    60,500    -    241,325    (6,575)   234,750 
Rachel   218,441    72,814    -    291,255    (15,887)   275,368 
Ratliff   241,684    80,561    -    322,245    (18,309)   303,936 
Riverwood   217,223    72,408    10,721    300,352    (25,402)   274,950 
Roanoke   253,193    84,398    -    337,591    (23,018)   314,574 
Robinson   242,512    80,998    -    323,510    (9,554)   313,956 
Ross   252,016    84,005    -    336,021    (18,328)   317,692 
Sansa   135,657    45,219    -    180,876    (10,277)   170,599 
Sedgefield   220,746    75,725    -    296,471    (14,048)   282,423 
Seneca   223,146    73,725    -    296,871    (9,467)   287,404 
Sheezy   176,837    58,250    -    235,087    (18,755)   216,331 
Sherwood   131,898    43,966    -    175,864    (12,390)   163,473 
Spangler   288,280    95,500    6,308    390,088    (11,745)   378,344 
Summerglen   183,172    61,057    -    244,229    (17,762)   226,467 
Tansel   246,162    82,054    -    328,216    (23,124)   305,092 
Thomas   165,820    55,273    -    221,093    (16,079)   205,013 
Tomlinson   183,250    61,250    -    244,500    (6,664)   237,836 
Tytus   196,851    65,617    -    262,468    (18,492)   243,975 
Vanzant   267,416    88,750    -    356,166    (18,638)   337,528 
Watson   133,058    44,353    -    177,411    (12,903)   164,508 
Westhaven   192,956    64,319    -    257,274    (18,711)   238,563 
Wheeler   157,535    52,512    -    210,047    (15,276)   194,770 
Williamson   216,704    72,235    -    288,939    (19,700)   269,239 
Woodland   121,075    40,358    7,252    168,685    (15,000)   153,685 
Woodwind   192,730    64,243    -    256,974    (18,689)   238,285 
Wynde   188,783    62,928    5,914    257,624    (20,395)   237,228 
Wyndhurst   234,133    78,044    -    312,177    (17,028)   295,149 
Zane   123,239    41,080    7,252    171,571    (11,324)   160,247 
                               
   $19,855,368   $6,612,008   $221,311   $26,688,687   $(1,676,342)  $25,012,345 

 

F-109

 

December 31, 2024
                         
Series  Building   Land   Property Improvements   Total   Less:  Accumulated Depreciation   Property and equipment, net 
Adams  $230,829   $76,000   $-   $306,829   $-   $306,829 
Antares   234,124    78,041    -    312,165    (12,770)   299,395 
Aramis   226,769    75,590    -    302,358    (12,369)   289,989 
Arkoma   178,459    59,486    -    237,946    (10,275)   227,671 
Arya   135,657    45,219    -    180,876    (5,344)   175,531 
Aspen   202,343    67,448    -    269,791    (12,263)   257,527 
Athos   219,648    73,216    5,840    298,704    (13,343)   285,361 
Barclay   231,439    77,146    -    308,585    (13,325)   295,259 
Bayne   264,381    86,906    -    351,287    -    351,287 
Bean   221,579    73,860    -    295,438    (9,400)   286,038 
Bennett   160,052    53,351    -    213,402    (9,700)   203,702 
Benny   192,665    64,222    -    256,887    (11,677)   245,210 
Bluebell   225,920    75,307    -    301,226    (12,323)   288,903 
Bowling   157,406    52,469    -    209,875    (10,017)   199,858 
Boxwood   243,102    81,248    -    324,350    -    324,350 
Bradford   229,997    76,666    -    306,663    (13,238)   293,425 
Brookwood   211,955    70,652    -    282,607    (12,846)   269,761 
Bryant   211,467    70,489    5,470    287,426    (13,816)   273,609 
Caden   189,056    63,019    -    252,075    (12,031)   240,044 
Camellia   192,475    64,158    13,114    269,747    (16,037)   253,710 
Caterpillar   226,811    75,604    -    302,414    (12,371)   290,043 
Chilhowee   245,882    80,960    -    326,842    (17,137)   309,705 
Claremore   177,773    59,258    -    237,030    (10,235)   226,795 
Collinison   228,338    75,250    -    303,588    (8,303)   295,285 
Cordero   190,960    63,653    21,346    275,959    (12,288)   263,670 
Cristalino   232,382    77,461    -    309,843    (14,788)   295,055 
Ellie   217,159    72,386    -    289,546    (9,213)   280,333 
Emelina   188,311    62,770    6,975    258,056    (14,308)   243,748 
Ethan   146,204    48,735    14,886    209,824    (10,895)   198,929 
Frances   211,050    69,498    -    280,547    (7,035)   273,512 
Glenncrest   219,509    72,500    -    292,009    (7,982)   284,027 
Gordon   193,167    64,389    -    257,556    (11,122)   246,434 
Haikey   185,216    61,739    -    246,955    (10,103)   236,852 
Hamblen   193,966    64,655    -    258,621    (11,755)   246,865 
Hancock   204,015    68,005    5,175    277,195    (13,299)   263,896 
Hardman   292,918    97,639    -    390,558    (10,652)   379,906 
Haven   140,196    46,732    -    186,928    (8,922)   178,006 
Haverhill   177,351    59,117    -    236,468    (10,749)   225,720 
Haybridge   271,195    90,398    -    361,593    (10,683)   350,910 
Hedgecrest   271,195    90,398    -    361,593    (10,683)   350,910 
Helmerich   190,433    63,478    -    253,910    (10,964)   242,946 
Hermanos   232,856    77,619    16,803    327,278    (20,950)   306,328 
Holmes   133,058    44,353    -    177,411    (8,064)   169,346 
Johnson   248,064    81,518    -    329,582    (3,759)   325,823 
Keystone   263,140    86,695    -    349,835    (8,771)   341,063 
Langley   250,762    83,750    -    334,512    -    334,512 
Laurel   254,681    83,811    -    338,492    (7,718)   330,775 
Layla   244,911    81,637    -    326,548    (8,906)   317,642 
Liberty   189,606    63,202    20,979    273,787    (14,581)   259,206 
Lithonia   213,879    71,293    10,745    295,917    (14,574)   281,343 
Lola   227,929    75,976    -    303,905    (8,288)   295,617 
Lucas   192,650    64,217    5,675    262,542    (12,227)   250,315 

 

F-110

 

Series  Building   Land   Property Improvements   Total   Less:  Accumulated Depreciation   Property and equipment, net 
Macomber   207,833    69,278    5,068    282,178    (12,772)   269,405 
Mallard   157,399    52,466    -    209,866    (9,062)   200,803 
Marcy   135,657    45,219    -    180,876    (5,344)   175,531 
Meridian   199,873    66,624    8,575    275,072    (12,937)   262,135 
Metallo   220,432    74,750    -    295,182    -    295,182 
Misty   259,742    86,250    -    345,992    -    345,992 
Montgomery   154,790    51,597    13,590    219,977    (11,193)   208,784 
Northbrook   212,953    70,984    -    283,937    (7,744)   276,193 
Northridge   194,437    67,475    -    261,912    (6,481)   255,431 
Oakland   232,207    77,402    -    309,609    (9,148)   300,462 
Palmore   151,605    50,535    6,990    209,131    (11,279)   197,852 
Pebblestone   255,302    84,106    -    339,409    (8,510)   330,898 
Perdita   250,821    83,607    -    334,428    (14,441)   319,987 
Phoebe   210,002    69,026    -    279,028    (7,000)   272,028 
Pongo   250,821    83,607    -    334,428    (14,441)   319,987 
Portsmouth   161,270    53,757    -    215,026    (9,774)   205,252 
Presidio   180,825    60,500    -    241,325    -    241,325 
Rachel   218,441    72,814    -    291,255    (7,943)   283,311 
Ratliff   241,684    80,561    -    322,245    (9,521)   312,724 
Riverwood   217,223    72,408    10,721    300,352    (15,361)   284,990 
Roanoke   253,193    84,398    -    337,591    (13,811)   323,781 
Robinson   242,512    80,998    -    323,510    (735)   322,775 
Ross   252,016    84,005    -    336,021    (9,164)   326,857 
Sansa   135,657    45,219    -    180,876    (5,344)   175,531 
Sedgefield   220,746    75,725    -    296,471    (6,020)   290,451 
Seneca   223,146    73,725    -    296,871    (1,352)   295,518 
Sheezy   176,837    58,250    -    235,087    (12,325)   222,762 
Sherwood   131,898    43,966    -    175,864    (7,594)   168,270 
Spangler   288,280    95,500    6,308    390,088    -    390,088 
Summerglen   183,172    61,057    -    244,229    (11,101)   233,128 
Tansel   246,162    82,054    -    328,216    (14,173)   314,043 
Thomas   165,820    55,273    -    221,093    (10,050)   211,043 
Tomlinson   183,250    61,250    -    244,500    -    244,500 
Tytus   196,851    65,617    -    262,468    (11,334)   251,134 
Vanzant   267,416    88,750    -    356,166    (8,914)   347,252 
Watson   133,058    44,353    -    177,411    (8,064)   169,346 
Westhaven   192,956    64,319    -    257,274    (11,694)   245,580 
Wheeler   157,535    52,512    -    210,047    (9,548)   200,499 
Williamson   216,704    72,235    -    288,939    (11,820)   277,119 
Woodland   121,075    40,358    7,252    168,685    (9,147)   159,538 
Woodwind   192,730    64,243    -    256,974    (11,681)   245,293 
Wynde   188,783    62,928    5,914    257,624    (12,348)   245,276 
Wyndhurst   234,133    78,044    -    312,177    (8,514)   303,663 
Zane   123,239    41,080    -    164,319    (6,722)   157,597 
                               
   $19,855,368   $6,612,008   $191,426   $26,658,802   $(916,508)  $25,742,294 

 

F-111

 

During the year ended December 31, 2025, certain series received insurance claim proceeds of $32,387 related to property damage events, including water damage, mold remediation, and storm-related structural damage. During the year ended December 31, 2024, certain series received insurance claim proceeds of $6,998 related to property damage events, including water heater failure and flood damage occurring during a vacancy period. The proceeds were recognized as insurance claim proceeds in the consolidated statement of comprehensive income (loss) for the years ended December 31, 2025 and 2024.

 

For the years ended December 31, 2025 and 2024, depreciation expense was $759,834 and $646,366, respectively.

 

NOTE 5: BRIDGE FINANCING, RELATED PARTY

 

Bridge financing from related parties is secured by each series property and bears interest-only terms, with all accrued interest due at maturity or repayment. As of December 31, 2025, all outstanding principal and accrued interest expense related to such bridge financing has been fully repaid. Accordingly, the Company has no outstanding bridge financing, related party as of the year ended December 31, 2025.

 

The following is a summary of series that repaid the outstanding principal and accrued interest in full as of December 31, 2024:

 

December 31, 2024
               
Series  Lender  Bridge Financing   Interest Rate   Term
Arrived TN Adams, LLC  Arrived Short Term Notes, LLC  $288,000    7.50%  18 Months
Arrived TN Bayne, LLC  Arrived Short Term Notes, LLC   328,683    7.50%  18 Months
Arrived MS Boxwood, LLC  Arrived Short Term Notes, LLC   308,000    7.50%  18 Months
Arrived VA Langley, LLC  Arrived Short Term Notes, LLC   318,000    7.50%  18 Months
Arrived AR Metallo, LLC  Arrived Short Term Notes, LLC   284,000    7.50%  18 Months
Arrived IN Presidio, LLC  Arrived Short Term Notes, LLC   229,000    7.50%  18 Months
Arrived KY Spangler, LLC  Arrived Short Term Notes, LLC   362,000    7.50%  18 Months
Arrived KY Tomlinson, LLC  Arrived Short Term Notes, LLC   232,000    7.50%  18 Months
                 
      $2,349,683         

 

For the years ended December 31, 2025 and 2024, interest expense was $17,421 and $71,802, respectively.

 

NOTE 6: OPERATIONAL NOTES, RELATED PARTY

 

As of December 31, 2025 and 2024, certain series obtained promissory notes from Arrived Short Term Notes, LLC, an affiliate of the Company, in aggregate amounts of $132,400 and $78,300, respectively. These notes carry an 18-month term and bear interest at rates ranging from 6.5% to 7.5% per annum, with no prepayment penalties. The proceeds were used for property improvements and working capital. Interest expense on these notes for the years ended December 31, 2025 and 2024 was $7,659 and $313, respectively.

 

NOTE 7: MEMBERS’ EQUITY (DEFICIT)

 

Each series is managed by Arrived Fund Manager, LLC, a Delaware limited liability company and managing member of the Company. Pursuant to the terms of the operating agreement, the manager will provide certain management and advisory services, as well as management team and appropriate support personnel to the Company.

 

The manager will be responsible for directing the management of series business and affairs, managing the day-to-day affairs, and implementing the series investment strategy. The manager has a unilateral ability to amend the operating agreement and the allocation policy in certain circumstances without the consent of the investors. The investors only have limited voting rights with respect to the series.

 

The manager has sole discretion in determining what distributions, if any, are made to interest holders except as otherwise limited by law or the operating agreement. The series expects the manager to make distributions on a quarterly basis. However, the manager may change the timing of distributions or determine that no distributions shall be made, in its sole discretion.

  

F-112

 

Membership Interests

 

For the years ended December 31, 2025 and 2024, the series closed on their public offerings with net proceeds of $2,711,403 and $5,075,676, respectively. The following table below outlines the details of the offerings by each series:

 

December 31, 2025 
  
Series  # of Units Issued   Net proceeds from the issuance of membership units   Offering brokerage fee (1%)   Offering expense (2%)   Shares redeemed   Redemptions 
Adams   36,087   $334,077   $3,609   $7,224         -   $     - 
Antares   -    -    -    -    -    - 
Aramis   -    -    -    -    -    - 
Arkoma   -    -    -    -    -    - 
Arya   -    -    -    -    -    - 
Aspen   -    -    -    -    -    - 
Athos   -    -    -    -    -    - 
Barclay   -    -    -    -    -    - 
Bayne   41,105    380,478    4,111    8,222    -    - 
Bean   -    -    -    -    -    - 
Bennett   -    -    -    -    -    - 
Benny   -    -    -    -    -    - 
Bluebell   -    -    -    -    -    - 
Bowling   -    -    -    -    -    - 
Boxwood   38,181    353,436    3,818    7,636    -    - 
Bradford   -    -    -    -    -    - 
Brookwood   -    -    -    -    -    - 
Bryant   -    -    -    -    -    - 
Caden   -    -    -    -    -    - 
Camellia   -    -    -    -    -    - 
Caterpillar   -    -    -    -    -    - 
Chilhowee   -    -    -    -    -    - 
Claremore   -    -    -    -    -    - 
Collinison   -    -    -    -    -    - 
Cordero   -    -    -    -    -    - 
Cristalino   -    -    -    -    -    - 
Ellie   -    -    -    -    -    - 
Emelina   -    -    -    -    -    - 
Ethan   -    -    -    -    -    - 
Frances   -    -    -    -    -    - 
Glenncrest   -    -    -    -    -    - 
Gordon   -    -    -    -    -    - 
Haikey   -    -    -    -    -    - 
Hamblen   -    -    -    -    -    - 
Hancock   -    -    -    -    -    - 
Hardman   -    -    -    -    -    - 
Haven   -    -    -    -        -        - 
Haverhill   -    -    -    -    -    - 
Haybridge   -    -    -    -    -    - 
Hedgecrest   -    -    -    -    -    - 
Helmerich   -    -    -    -    -    - 
Hermanos   -    -    -    -    -    - 
Holmes   -    -    -    -    -    - 
Johnson   -    -    -    -    -    - 

 

F-113

 

Series  # of Units Issued   Net proceeds from the issuance of membership units   Offering brokerage fee (1%)   Offering expense (2%)   Shares redeemed   Redemptions 
Keystone   -    -    -    -    -    - 
Langley   39,184    362,757    3,918    7,845    -    - 
Laurel   -    -    -    -    -    - 
Layla   -    -    -    -    -    - 
Liberty   -    -    -    -    -    - 
Lithonia   -    -    -    -    -    - 
Lola   -    -    -    -    -    - 
Lucas   -    -    -    -    -    - 
Macomber   -    -    -    -    -    - 
Mallard   -    -    -    -    -    - 
Marcy   -    -    -    -    -    - 
Meridian   -    -    -    -    -    - 
Metallo   34,888    322,979    3,489    6,982    -    - 
Misty   -    495    5    -    -    - 
Montgomery   -    -    -    -    -    - 
Northbrook   -    -    -    -    -    - 
Northridge   -    -    -    -    -    - 
Oakland   -    -    -    -    -    - 
Palmore   -    -    -    -    -    - 
Pebblestone   -    -    -    -    -    - 
Perdita   -    -    -    -    -    - 
Phoebe   -    -    -    -    -    - 
Pongo   -    -    -    -    -    - 
Portsmouth   -    -    -    -    -    - 
Presidio   28,661    265,302    2,867    5,741    -    - 
Rachel   -    -    -    -    -    - 
Ratliff   -    -    -    -    -    - 
Riverwood   -    -    -    -    -    - 
Roanoke   -    -    -    -    -    - 
Robinson   -    -    -    -    -    - 
Ross   -    -    -    -    -    - 
Sansa   -    -    -    -    -    - 
Sedgefield   -    -    -    -    -    - 
Seneca   -    -    -    -    -    - 
Sheezy   -    -    -    -    -    - 
Sherwood   -    -    -    -    -    - 
Spangler   45,431    420,629    4,543    9,088    -    - 
Summerglen   -    -    -    -    -    - 
Tansel   -    -    -    -    -    - 
Thomas   -    -    -    -    -    - 
Tomlinson   29,289    271,251    2,929    5,860    -    - 
Tytus   -    -    -    -    -    - 
Vanzant   -    -    -    -    -    - 
Watson   -    -    -    -    -    - 
Westhaven   -    -    -    -    -    - 
Wheeler   -    -    -    -    -    - 
Williamson   -    -    -    -    -    - 
Woodland   -    -    -    -    -    - 
Woodwind   -    -    -    -    -    - 
Wynde   -    -    -    -    -    - 
Wyndhurst   -    -    -    -    -    - 
Zane   -    -    -    -    -    - 
    292,826    2,711,403    29,289    58,598    -    - 

 

F-114

 

December 31, 2024 
                         
Series  # of Units Issued   Net proceeds from the issuance of membership units   Offering brokerage fee (1%)   Offering expense (2%)   Shares redeemed   Redemptions 
Adams   -   $-   $-   $-    -   $- 
Antares   -    -    -    -    -    - 
Aramis   -    650    -    (10)   -    - 
Arkoma   -    -    -    -    -    - 
Arya   -    -    -    -    -    - 
Aspen   -    -    -    -    (10)   (100)
Athos   -    762    -    (12)   -    - 
Barclay   -    289    -    11    -    - 
Bayne   -    -    -    -    -    - 
Bean   -    -    -    -    -    - 
Bennett   -    -    -    -    -    - 
Benny