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Investing in the Single-Family Home Rental Market

Posted By Boyer Law Firm, P.L. On February 5, 2013 @ 9:00 am In Business Law in Florida,Florida Real Estate | Comments Disabled

For the first time in Florida history, real estate [1] investment firms are investing in the single-family home rental market, replacing so-called “condo vulture” investors.Singe-Family Home Investment [2]

Private equity funds, hedge funds, and REITs have purchased at least 4,000 single-family homes [3] for the purpose of renting them out. These companies pay cash for a cluster of foreclosed or bank-owned homes [4], rent them out for a couple years, and then sell them for a profit. This business model works because home prices are low, rent prices are high, and the market is expected to bounce back in a couple years.

These homes are a much better investment than condos because in addition to the eventual payoff when the property is sold, single-family home investors can also make a profit while renting out the homes.

Previously, it was almost impossible to buy homes in clusters because they went on the market randomly and were usually spread out over a wide geographic location. This is no longer the case because the Federal Housing Finance Agency is now selling foreclosed homes in bundles.

Investors also have the option of hiring a local property management company to keep up with maintenance, rent collection and more, making the process even easier.

If you have the venture capital [5], it is a great time to start a Florida real estate investment company. For foreign investors [6], this could also be a path to a visa [4]if the investment is sufficient and will create jobs.


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URL to article: http://boyerlawfirmblog.com/investing-in-the-single-family-home-rental-market/

URLs in this post:

[1] real estate: http://boyerlawfirm.com/practice-areas/real-estate-law/

[2] Image: http://boyerlawfirmblog.com/wp-content/uploads/2013/02/freeimage-5831896.jpg

[3] single-family homes: http://boyerlawfirm.com/practice-areas/real-estate-law/residential-real-estate/

[4] foreclosed or bank-owned homes: http://boyerlawfirm.com/practice-areas/real-estate-law/short-sales/

[5] venture capital: http://boyerlawfirmblog.com/venture-capital-to-start-a-business/

[6] foreign investors: http://boyerlawfirmblog.com/now-is-the-time-for-foreign-investment-in-florida/

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