Thursday, May 10, 2012

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."


At 5/10/2012 8:42 PM, Blogger Hell_Is_Like_Newark said...

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.

At 5/14/2012 6:49 PM, Blogger james said...

I like the idea of the housing reit's. I think its a great idea.


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