For those of you unaware, wall street journal did a piece over the weekend.
Archive.is link http://archive.is/MSu7y
Jest is that investment firms are buying up houses, sometimes even winning bidding wars against real potential buyers b/c they have the pocket to offer all cash/no inspection deals. They then fix up the home and rents it out at much higher prices, with annual rent increases of 3% or more.
The analysis—which assumed 10% down payments and 30-year fixed-rate mortgages, plus taxes and insurance—found the posted rents on those homes averaged 32% more than the monthly ownership cost
One of those firm's ceo's statement on the matter
Their wherewithal to pay rent today as well as pay rent in the future, with increases, is sufficient,” he said. “It’s just up to us to educate tenants on a new way, that there will be annual rent increases. This has been a very passively managed industry for 30, 40 years up until institutional players came in
Wondering what everyone's thoughts are on the matter.
Submitted July 24, 2017 at 05:50PM by Lab_Ratting http://ift.tt/2uTdCEm
