Relevant:
- When big money chases rentals -- Fed pushing large money investors into becoming landlords.
- NYC Landlords Slash Retail Rents to Ward Off Vacancies
- FHA low down payment buyers and cash investors dominate Southern California housing market – Not a healthy market when over 63 percent of sales come from these two groups. Move up sellers unable to shift because of negative equity.
- Housing: Declining Rents
- Rents on the Rise: Shadow Inventory a Solution?
2013-02-11 — doctorhousingbubble.com
Some big money investors are looking to convert these properties into securities with a stream coming from rents. However, the ROI is based on generous assumptions of gross rents collected. Most investors realize that over time, 40 to 50 percent of gross rents will go to pay for other items that are not related to principal or interest (i.e., repairs, vacancies, management, rent ready repairs, etc). This trend has only picked up since 2007 but many are now looking more carefully as yields are squeezed.
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