Markets in Everything: Home Rental REITs
WSJ -- "Investors can buy stakes in malls, apartment towers, timber forests and
even cellphone towers through real-estate investment trusts. Now, add to
the list: single-family homes transformed into rental properties.
Beazer Homes USA Inc., one of the nation's top home builders, has formed a REIT that will buy
and then rent single-family homes, one of the largest and most
talked-about asset classes in the real-estate business. The
Atlanta-based company last week announced that it was joining with
buyout firm Kohlberg Kravis Roberts & Co. to form the REIT, which
eventually plans to go public."
2 Comments:
Speaking as a landlord in the NY metro area...
it is really, really, really hard to make money on rents on building with two or less apartments. The amount of rent you have to ask for to cover taxes, insurance, P&I, etc. is pretty much a mortgage payment.
Unless you have a couple families willing to cram themselves into a single family home, it will be hard for many in the rental class to afford it.
I like the idea of the housing reit's. I think its a great idea.
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