Police hunt three men after home invasion in Sydney's south-west

A young family has been traumatised after three men broke into their home in Sydney's south-west overnight.

The men stormed into the home on Ludgate Street in Roselands about 5am, going into bedrooms and demanding money.

Three children aged 3, 7 and 9 were asleep inside the home at the time.

Their mum quickly pulled them from their beds and hid them inside a wardrobe during the ordeal, but they were still left "traumatised", the family said.

Officers have been told one man was armed with a firearm, while the others covered their faces.

One of the residents ran to neighbours for help.

"We got a wakeup call from the neighbour ringing the doorbell constantly saying 'we've just been robbed'," the neighbour told 9News.

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Police believe the men left empty-handed, fleeing in an Audi Q5 SUV.

An SUV matching the description was discovered by police on fire about 20 minutes later in Greenacre.

Police are investigating wether the break-in was a case of mistaken identity.

There were no physical injuries from the incident.

Investigators are appealing for anyone with information relevant to these incidents; or who may have dashcam vision and were in the vicinity of either Ludgate Street, Roselands, or Abbey Avenue, Greenacre between 5am and 5.30am, to contact Crime Stoppers on 1800 333 000.