Hedge funds and other instituional investors are snapping up lower priced homes, doing a bit of rehab and renting them out. They are buying these homes by the thousands from lending institutions who have foreclosed.
The supply of non-distressed homes is declining to unprecidented levels. With the distressed homes at low levels and the rising single family home rents here.....watch out. This is a "Black Swan" event (a totally unexpected outside event that brings about major change)!
We get frequent calls from afar seeking cheap distressed and other houses. Forget it! These institutional investors are accepting a cap rate that is low .....betting on a long term rate of return when the market takes off.
It already has taken off.....albeit from a very low level relative to "bubble prices".
You cannot compete with Hedge Funds....too late.