Research firm Capital Economics tells HousingWire investors seeking to cash in on single-family rental properties best move quickly. Economist Paul Diggle with Capital says early buyers found prices 30 percent below peak, with potential yields of 8-12 percent. Noting it is likely a one-time opportunity, Diggle says as house prices recover and the more attractive assets are snapped up the investor interest will certainly fade, although there are still 3.8 million homes in foreclosure or delinquent. Says Diggle: “While single-family rental housing is going to be an important new asset class for some investors over the next few years, it is always likely to be dwarfed by the existing, multifamily REIT market.” As MHProNews has learned, there are also 375,000 REO (real estate owned) homes in the system.
(Image credit: Wikipedia—dollar houses)