The rush to assemble large portfolios of distressed properties and create large rental companies has helped to generate double-digit house price appreciation in most major markets. As a result, the pool of homes that will produce the kind of yields investors expect is drying up.
“Investors will expand their holdings now and into 2014, but this expansion is likely to be decidedly more restrained than the binge of the past 18 months,” the RealtyTrac/Pintar report says.
Based in San Juan Capistrano, Calif., Pintar is an active buyer for its single-family rental investment company called Port Street Realty Corp.
Going forward, successful investors will likely “acquire homes in secondary markets” and focus on carefully managing their existing portfolios. The joint report is called “Back to Reality with Buy to Rent.”