Monday, March 17, 2014 12:47:21 PM
Does anyone really believe in this wall street rental business model?
It seems like the PITA factor combined with the extra carrying costs of Single Family Homes would really drive down margins and expected return.
What happens when the market turns downward again? Currently prices have been inflated nationally by Zero Interest Rate Policy and Investor's ravenous buying.
However, there is no wage growth to support these prices (or rising rents). These companies are also getting eviscerated online by people who are renting from them and they are described as "slumlords."
This whole things feels like IndyMac and New Century Financial back in 2006…
I must admit to being very bearish on this whole enterprise… the main question in my mind is when does it all come crashing down?
It seems like the PITA factor combined with the extra carrying costs of Single Family Homes would really drive down margins and expected return.
What happens when the market turns downward again? Currently prices have been inflated nationally by Zero Interest Rate Policy and Investor's ravenous buying.
However, there is no wage growth to support these prices (or rising rents). These companies are also getting eviscerated online by people who are renting from them and they are described as "slumlords."
This whole things feels like IndyMac and New Century Financial back in 2006…
I must admit to being very bearish on this whole enterprise… the main question in my mind is when does it all come crashing down?
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