Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net income (loss) $ 568,545 $ (125,133) $ (1,224,683)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      
Depreciation and amortization 3,113,492 1,735,644 722,455
Amortization of deferred financing costs 106,806 53,286 30,024
Amortization of deferred rent assets and liabilities, net (200,783) (194,267) (68,617)
Allowance for doubtful accounts 10,219    
Property and casualty recovery, net (97,232) (262,963)  
Insurance proceeds received utilized for repairs to real estate assets 9,965 89,688  
Deferred income taxes     (743,676)
Changes in operating assets and liabilities:      
Other assets (124,023) (684,782) 25,205
Accounts payable, accrued expenses, and due to related parties 523,781 1,180,185 250,139
Other liabilities 843,065 1,751,964 548,800
Net cash provided by (used in) operating activities 4,753,835 3,543,622 (460,353)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Acquisition of new real estate (74,448,512) (68,626,968) (37,871,978)
Capital expenditures on existing real estate (3,246,646) (2,619,084) (811,605)
Decrease (increase) in restricted cash 132,741 (132,700) (41)
Purchase of U.S. Treasuries     (19,994,981)
Maturity of U.S. Treasuries     20,000,000
Deposits on future acquisitions (50,000) (350,000) (200,000)
Deposits applied against real estate investments (1,150,000)    
Deposits refunded 200,000 50,000 150,000
Insurance proceeds received capitalized as real estate asset additions 87,267 344,512  
Net cash used in investing activities (78,475,150) (71,334,240) (38,728,605)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from issuance of equity 23,132,910 15,024,003 56,703,960
Offering costs (1,482,029) (950,965) (4,687,579)
Borrowings from mortgage notes payable 60,841,476 41,188,600 13,565,000
Repayments on mortgage note payable (625,680) (1,825,404) (1,228,715)
Net borrowings from line of credit (3,900,000) 3,900,000  
Payment of financing fees (273,003) (738,754) (35,807)
Distributions paid (4,059,179) (2,458,802) (9,730,093)
Net cash provided by financing activities 73,634,495 54,138,678 54,586,766
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (86,820) (13,651,940) 15,397,808
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,619,342 16,271,282 873,474
CASH AND CASH EQUIVALENTS AT END OF PERIOD 2,532,522 2,619,342 16,271,282
Cash paid during the year for interest 3,262,993 1,431,214 1,055,333
Cash paid during the year for income taxes   27,000 2,274,727
NON-CASH INVESTING AND FINANCING INFORMATION:      
Real estate additions included in Other assets   61,500  
Real estate additions included in Accounts payable and accrued expenses 1,157,347 81,072 $ 309,174
Real estate additions included in Other liabilities 1,572,365 585,947  
Offering costs included in Accounts payable, accrued expenses and due to related parties 225,684 141,967  
Financing fees included in Accounts payable and accrued expenses $ 25,120 $ 44,313