Value Microcaps Motherboard

[lentinman]

cws: Housing:

I think at some point it could be better for rentals, but it may take awhile. I think there has also been too much building of rental properties too. And, a lot of people may try to survive by renting their second homes still believing in property appreciation as their way out of the mess. I suspect that it will be tough in the rental business (depending on the area, etc) for some time.

Then, you have to add additional credit risk as a much higher percentage of renters will likely have lower credit scores.

I know where I live (a highly desireable area in south JOCO), it is almost impossible to be cash flow positive. You have to realize that some landlords are going to be forced to sell just like homeowners. Maybe even a higher percentage. If that happens, the new buyer will be paying less for the property and thus needing less money on rent. So, rental rates could go down for some time and the payout could be problematic for a long time. There is just too much speculation in the market today IMO.

Len