The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: GoCubsGo on September 29, 2014, 08:42:07 AM
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http://preview.msn.com/en-us/money/realestate/how-to-profit-from-renting-out-single-family-homes/ar-BB5hz07 (http://preview.msn.com/en-us/money/realestate/how-to-profit-from-renting-out-single-family-homes/ar-BB5hz07)
Saw this today. I've seen some of these companies mentioned in this forum (and some of you invest with them). A hedgefund startup tried to buy a house I rehabbed last summer (which I turned into a rental). They've bought dozens of homes in my area to convert into rentals (had $30 million to spend). I've followed their deals closely and they are paying way too much and now are trying to charge too much rent which is causing their rentals to sit for a long time.
My market is too pricey (and thanks to this site I'm staying disciplined and not buying low ROI properties even though it's killing me to have cash sitting around). I'm going to look into the Dallas and Houston divisions of Memphis Invest to determine if it's right for me. It's interesting to see all the options popping up.
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I think the fact that companies are trying to do this means that the opportunities are largely gone. It's not like it's hard to find big investors if you're really going to get safe 7%+ returns - so if they are marketing this to first-timers/small timers... that's not a good signal to jump in, at least IMO.
2009-2011 or so was the time to buy rentals. There's still stuff out there but it's not easy or convenient to find anymore.
-W