by Julie Schmit
USA Today
Major real estate investors are buying fewer homes in some hot markets while expanding in others as they race against rising prices to turn more distressed homes into rentals.
Investor interest may be close to peaking in some California markets where prices have risen sharply because higher acquisition prices cut finacial returns, said John Burns, CEO of Burns Real Estate Consulting.
Foreclosures
Home shoppers are now seeing the multiple offers, bidding wars and shrinking supplies of homes for sale as investors swooped in.
Major institutional investors are amassing a $10 billion pool of money to pursue the single-family rental market, JPMorgan Chase estimated in a recent research report.
They're betting that they can get distressed homes on the cheap, fix them up and rent them out, often to families who lost homes to foreclosure, and make money on home price appreciation in a few years.
The companies generally seek three-bedroom, two-bath homes in the $100,000 to $125,000 range that can rent for more than $1,000 a month, analysts say.
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