rentals), as well as securitize and sell the securities, to *you* for your 401K.

and then they can bet against *that* when they decide to crash it.

they're a menace to society and should be locked up. too much power in too few hands = destruction.

.. don't think it is happening in smaller towns particularly.

One thing I would say about this is that residential real estate rentals has always been a mom and pop business for a reason. It is very hands on, anyone that thinks they can just buy a house, turn it over to a property management company and have everything work out is a fool.

In other words, this could easily be the genesis of the next crash in housing as these "deals" go sour because lousy tenants are used and properties become worn down over the years due to poor maintenance.

What a sweet deal, and they get another massive stream of hard currency income from the collapsed cash colony, too.

One of my preferred retirement locations has literally 100s of properties on the market, and the prices are stunningly low. I have looked at the sale histories and current home prices in this area are roughly the same as the were in the 1970s some perhaps more like the early 1980s. With interest rates this low, I could literally pick up a functional home with a mortgage payment smaller than my current utility bill.

I likely would rent it for the next few years as i finish out the service years requirement for my full pension benefit, but fully expect to live there. I would not need to rent it as I could carry the payment if I had to, but renting and using the funds from the rent to make the payments and cover management / maintenance while I live 90 miles away makes sense.

Yes, investors are jumping in on this, in some cases where the home is in need of significant repair the price is so low that I have paid more for a used car (and I generally buy older vehicles). In some cases they are worth the investment just for the lot alone and the house is looked at as an expense for demolition to clear the site.

The more I have looked, the more it seems that I would be nuts not to do this. I have run the numbers and know that living reasonably well in retirement for me requires a paid off house and a small income stream from my art business. This is a way for me to get one aspect done now.

Got a flyer stuck on my door yesterday from a realtor who is evidently working with Blackstone. Bragging (with an article from Tampa Bay Times from last fall) that Blackstone is going to spend a billion dollars buying up properties in the Tampa area and rent them out.
And how Blackstone can beat out first-timers and families because they don't care about appraisals or short sales. Instant cash.
A neighborhood full of house rentals will suck. But even though I have some decent equity, I wouldn't have enough to buy another decent place to live.
Odd, the article made Blackstone out to be a rich bully, mentioned Romney and Bain, seemed kind of ominous, really, so I don't quite understand the realtor's angle. I may call him today and ask about that. Is he pushing the inevitability angle, or the hey, your neighborhood is going to be full of rentals with a Wall Street landlord who doesn't give a shit angle? Perhaps they will Section 8 the houses and suck up more taxpayer subsidies?

Last edited Tue Oct 21, 2014, 06:50 AM - Edit history (2)

Here is really awesome and most exciting publish. I completely believe the fact with you and would like to say thanks to you that you discuss this publish here with us. Keep it proceed please.