Investor 'feeding frenzy' gobbles up Sacramento-area homes for rentals - Real Estate - The Sacramento Bee
As the Sacramento housing bust enters its seventh year, it's taken on yet another defining characteristic. Investors are snatching up homes at rock-bottom prices, renting them out and earning money from rents that, in many cases, are significantly higher than mortgage payment sin the region.
The same thing is happening here in the Chicago area, Florida, and elsewhere. People with cash to burn, including hedge funds, are "investing" in foreclosed homes that they buy cheap from banks and then rent out. They sometimes buy most or all the units in a condo building. Thanks to Fred Pilot for the link.