Savvy investors know the old real estate adage, you make money when you buy, realizing the profit at sale. And in the interim, it’s very possible to make a decent living as a landlord. With depressed home prices, record low interest rates, strong rental demand, and a slowly recovering economy, investors from an array of backgrounds are taking leaps into the landlord business.
From large institutions to mom and pop shops, the federal government is looking to investors to help remedy and add liquidity into the depressed housing market. In fact, the Obama administration has recently started a pilot program for investors to buy properties in bulk. According to a recent whitepaper distributed to key lawmakers, the Fed notes that, “A government-facilitated REO[Real Estate owned]-to-rental program has the potential to help the housing market and improve loss recoveries on reo portfolios.” (more…)