Will REO-rentals Really Compete With Apartment Building Investments?

Greg Willett, VP of research over at Real Page wrote a nice piece on that which covers it nicely; take it away Greg:

Will REO rentals compete with Apartment Building Investments?

Thanks to one sentence uttered by Warren Buffett and some major overplay by the media, single-family rentals are a hot investment choice now.  Thus, the analysts at MPF Research are fielding a constant stream of inquiries about whether the bulk sale of bank-owned single-family homes to investors who will operate them as rentals will impact the apartment sector.

Our take is that Continue reading Will REO-rentals Really Compete With Apartment Building Investments?

The Yin/Yang of Apartment Building finance: Urban Equity v. Suburban Debt.

[Urban] TOD (Transit Oriented Development) has performed better and has a sexier image with many institutional investors. But while equity investors continue to favor urban TOD, developers are having a more difficult time finding construction debt at leverage levels that would make those deals pencil out.

Urban Apartment Building Investments

Meanwhile out in the ‘burbs: “On suburban sites, you see yields in the 7 to 8 percent range. On the core infill, you’re really building to a 5, 5.25 percent, maybe, and that’s getting dangerously close to acquisition cap rates.”

Suburban Apartment Building Investment

“We’re in an interesting situation now, where anytime you have a Continue reading The Yin/Yang of Apartment Building finance: Urban Equity v. Suburban Debt.