Your monthly cash distribution is calculated based on current rental income and operating expenses. Common operating expenses include property taxes, HOA fees, home insurance premium, and maintenance/repair costs. Therefore, these may result in a negative cash balance during the month of vacancy/repair/upgrade. In a negative cash balance scenario, we respectfully do not distribute cash for the current month and will subtract the balance due from next month’s income.
Ark7 usually issues cash distribution on the 3rd of each month. The calculation starts from the date when the investor places an order, and will be prorated for that first month. For example, an investor invested $5,000 in Berkeley M3 with an estimated 6% annual distribution rate on September 15th, the investor will receive about $5,000 * 6% / 12 * (15/30) = $12.5 on October 3rd.