The Wall St. Journal reported last week that Beezer Homes is forming an REIT to invest in single family homes and to turn them into rentals.
Investors can buy stakes in malls, apartment towers, timber forests and even cellphone towers through real-estate investment trusts. Now, add to the list: single-family homes transformed into rental properties.
The article goes on to detail that the builder is buying back some of the homes that they originally constructed. The company hopes to benefit from Beezer’s construction background in freshening up the homes and to market the rental properties as “Pre-Owned”.
In January, it was announced that a private equity firm was investing as much as $450 million to pursue single family properties.
I find it interesting that institutional investors are buying single-family rental properties. Obviously, they perceive value in pursuing this strategy.
Do you think it is a wise strategy?
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