Is Property Management Scalable?

[imoldernu]

Billionaire Speculators' Greed Makes Life Hard For Renters and Would-Be Homebuyers | Alternet

An interesting "take" on the housing market, and speculation, that could change what US homeowners have accepted as a "given". While there are more questions than answers in this article, the investment model of corporations owning and maintaining could presage a difference in what is considered the American Dream. A potential for monetary and social change.

Can a company manage, rent and sell vacant and distressed property, and turn a profit? Would this change society? A 16 to 18% return? Will this grow?

Considering the size of the housing bubble, is a macro approach possible? Can you picture this happening in your hometown?

 

[Fishingmn]

As a Realtor and owner of 8 rental properties I do follow these trends. What I see is that there are a ton of investors out in the market, way less inventory and prices are up 10-15% (in the Twin Cities and many other markets). On real estate investment forums, like biggerpockets.com, investors are lamenting how they can't find deals right now and margins are coming down.

At the same time, the lack of inventory is driving new construction which is having their best time in years. If investors with deep pockets try to push up the market too much then builders will just come along and build more which will be more attractive anyway to today's young homebuyers.

The funny thing is I don't see them being able to influence rents too much. Rents were up nicely in 2010-2011 but actually leveled in 2012 and we are also seeing a whole bunch of new apartments being built or planned which again will fill the gap and hold down rent increases.

Interesting strategy but the hey day of trying to get in on this option was 2 years ago.

 

[LandlordInvestor]

Also a landlord with 8 properties and I must agree with the previous poster. Here in Dallas area inventory is certainly down and prices are creeping up - and inflation has not even started.

Despite picking up 2 last year, I dont see us buying this year. The 2 we did buy were much harder to find than deals we found 2-3 years ago. I quit bidding on bank stuff, foreclosures, anyting on the MLS, etc. Our latest 2 purchases were from sellers that came to us after deaths in their families.

Rents have been creeping up for the last several years.. I guess they will continue, but I agree as apartments and home building picks up again - they will level off.