I would argue they are paying a premium for homes at auctions. They typically have tight criteria (for example, 1990 and newer, brick…)
They do it because its a good return on the money.
I work mostly with “mom and pop” investors who tend have a wider range of property and look for better one off deals.
We make loans with self directed IRA and make loans TO those that own property in the IRA
Nice article regarding how Airbnb affects lending, management and other factors for the rental (vacation or short term) owner.
common sense advice for the prospective home buyer / investor.
we always promote articles and information relating to investing in real estate. I have heard real estate is a numbers game, its what influences the numbers and understanding the influences that separate money winners and money losers.
They ask the question – are we ready? depends on the individual and property. Too much over analysis in my opinion. Keep the ltv under 80% and make sure borrowers have an income that “make sense” .
Great discussion on SFR rentals and Multifamily portfolios.