Comments by "worn down" (@worndown8280) on "Redfin: Investor Exodus Explodes in Housing" video.

  1. Over the last year the ROI on a single family rental was 1.32%. Over the last 5 years the ROI was 7.5% (this includes the massive run up in prices over the last few years). Now home prices will drop, interest rates will rise or at the very best stay high and rents are falling. Right now you can get a 52 week T bill right now for 4.794%. Why would any sane person buy a rental right now? All the risk, all the headache, for 1%. Just so much no. I dont care if you are a mom and pop, a rental mogul, or an investment fund.
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  2. They are looking to put their eggs in as many baskets as possible. This is common during a general downturn in the economy. That said while a billion sounds like a lot, at the median price of $361k, thats less than 3000 homes. The Japanese did this in the 80s. And they took about 20% losses. But if they kept their money where it was before they would have lost more than 50%.
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  3. People assume its these companies that are causing the high home prices. They are incorrect of course. Its just demography.
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