CasaFund use case: how to outperform the property market with data-centric SFR investments

CasaFund was a real estate investment vehicle launched by CASAFARI for 30 private investors and family offices. According to CasaFund’s portfolio results from Q4 2020 to Q1 2022, the vehicle acquired 38 underpriced single-family residential properties in central Lisbon, achieving gross unlevered rental yields close to 7% and near-zero vacancy rates.

These assets were converted from short to mid-term/long-term rentals following single-family rental investment strategies. CasaFund’s objective was to maximise returns for its investors by building a crisis-proof long-term rental portfolio in Lisbon’s sought-after neighbourhoods and was managed by CASAFARI’s dedicated team of market experts, who handled all operational aspects of the project.

A data-driven approach to buying and managing property

CasaFund’s approach combined in-depth market insights with data-centric decision-making to optimise the timing and conditions of each acquisition, rental, and sale.

When it came to finding the ideal properties for investment, the team turned to CASAFARI, the largest real estate database in Europe. Our Property Sourcing was used to find the best opportunities with the desired characteristics, such as a determined estimated rental yield, location, and price. Additionally, monitoring sequential price decreases and new listings notified the CasaFund team of interesting properties available with high interest to sell.

To ensure that the capital was well-invested, our Property Valuation was used to analyse the accurate value of the assets, comparing it to similar properties on the market. According to CasaFund’s acquisition results from Q4 2020 to Q1 2022, this data-centric approach secured reductions from initial asking prices to final closing prices of up to 30%.

Once acquired, CasaFund meticulously managed each property, overseeing the full investment cycle for profitable real estate asset management to maximise returns. This comprehensive approach included defining competitive rental values, coordinating refurbishments, sourcing tenants, and ensuring effective property management until the time was right for a sale. By leveraging CASAFARI’s vast market data, CasaFund identified precisely where CAPEX (asset upgrade through refurbishment) could add significant value with a positive ROI (return on investment), ensuring property price and quality would become more attractive to both tenants and future buyers.

In addition to Property Valuations, CASAFARI’s Market Analytics and Area Insights tool played an essential role here, helping the team monitor market dynamics and make timely rent adjustments that aligned with prevailing trends. This attention to market movements allowed CasaFund to maintain optimal rental income and consistently boost the portfolio’s overall ROI.

Moreover, when it came to selling the portfolio, Property Valuation was used once again to determine the most actual and accurate price of each asset, utilising our extensive network of partner real estate agencies for an accelerated sale unit-by-unit.

A closer look at use cases and returns

To illustrate the success of CasaFund, here are three representative use cases showcasing how carefully selected properties generated substantial returns:

• Prazeres: Capitalising on Unique Features In the Prazeres neighbourhood, according to CasaFund case studies from 2021–2024, the fund invested in a spacious 120 sqm, 3-bedroom apartment with a remarkable view. Purchased at an acquisition closing price of €235,000 and renovated for €21,700, this apartment’s appeal attracted high buying interest, enabling its exit sale just seven months later at an exit closing price of €350,000. This generated a gross profit of €85,000, allowing CasaFund investors to capture the market’s upside and reinvest the gains into new acquisitions.

• Ajuda: Leveraging Existing Lease Agreements CasaFund also identified a discounted 40 sqm, 1-bedroom apartment in Ajuda, purchased at an acquisition closing price of €150,000 with an existing lease agreement. According to CasaFund records from 2021–2024, within a year, the combined returns from the exit closing sale and lease proceeds exceeded €35,000, underscoring the value of acquiring properties with established rental income streams.

• Alfama: Maximising Yield on Assets A 30 sqm studio apartment in the Alfama neighbourhood was another profitable investment reported by CasaFund (2021–2024). Purchased at an acquisition closing price of €100,000, this asset generated a robust gross rental yield of nearly 10% before being sold at an exit closing price of €130,000.

With cases like these, CasaFund significantly outperformed any REITs or other real estate investments during 2023-2024, a significant accomplishment given the economic challenges during its operational period. Despite the market downturn, with property prices experiencing corrections and interest rates spiking, CasaFund managed to secure an overall positive net exit profit for its investors.

Property appreciation varied, with CasaFund reporting exit net profits of +20% to +30% on select portfolio assets during 2023–2024, illustrating the fund’s ability to capture significant returns in select cases. This resilience highlights the effectiveness of CasaFund’s strategy and the value of investing with precise market insights.

A key factor behind CasaFund’s success was CASAFARI’s advanced data tools, which guided every investment decision. They allowed the team to assess each property’s history and analyse past price trends, enabling informed purchase decisions. Additionally, CASAFARI’s technology tracked real-time market changes faster than others in identifying prime buying and selling opportunities based on current stock and pricing.

In simple terms, working with data and innovative technology, CasaFund managed the impossible: while everyone else lost money in real estate during the same period, those who invested with CASAFARI’s technology earned money, even in challenging times.

CasaFund demonstrated the potential for targeted real estate investments in dynamic urban markets, showcasing not only CASAFARI’s expertise in the real estate sector but also leading to a remarkable conclusion: those who buy property based on data can outperform the market during any economic cycle.

Frequently asked questions

What was CasaFund and what returns did it achieve in Lisbon?

CasaFund was a real estate investment vehicle launched by CASAFARI for 30 private investors and family offices. Between Q4 2020 and Q1 2022, CasaFund reported acquiring 38 single-family residential properties in central Lisbon with gross unlevered rental yields near 7% and near-zero vacancy rates. During its 2023–2024 exit phase, select portfolio assets delivered exit net profits of 20% to 30%.

How did CASAFARI’s valuation tools help negotiate up to 30% off asking prices?

CasaFund’s investment team used CASAFARI’s Property Valuation tools to assess each asset’s market value against comparable properties and historical price trends. According to CasaFund’s acquisition results from Q4 2020 to Q1 2022, this data-backed negotiation secured reductions of up to 30% from initial asking prices to final closing prices.

Which Lisbon neighbourhoods delivered strong returns for CasaFund?

According to CasaFund case studies from 2020–2024, Prazeres, Ajuda, and Alfama delivered strong returns. In Prazeres, a 120 sqm flat bought at a closing price of €235,000 and renovated for €21,700 sold seven months later at a closing price of €350,000, yielding an €85,000 gross profit. In Ajuda, a 40 sqm flat bought at a €150,000 closing price generated over €35,000 in combined proceeds within a year, while a 30 sqm studio in Alfama bought at €100,000 delivered nearly 10% gross yield before selling at a €130,000 closing price.

How does CASAFARI help investors manage CAPEX and rental yields after acquisition?

CASAFARI’s Area Insights and property history tools allow investors to pinpoint where refurbishment CAPEX delivers a positive ROI. Asset managers use live market trends to set competitive rental asking prices and maintain high occupancy.

How did CasaFund accelerate the unit-by-unit exit of its property portfolio?

During its 2023–2024 exit phase, CasaFund used CASAFARI’s Property Valuation tool to establish accurate asking prices aligned with market trends. The team then leveraged CASAFARI’s extensive network of partner real estate agencies to execute individual unit sales efficiently.