HOUSINGNEWS REPORT
THE RISING ‘BIG MIDDLE’ OF SINGLE FAMILY RENTALS
LOWEST SHARE OF INVESTMENT HOMES WITH LOAN
BIRMINGHAM-HOOVER, AL
24%
KNOXVILLE, TN
24%
PITTSBURGH, PA
25%
CHARLOTTE-CONCORD-GASTONIA, NC-SC
29%
30%
INDIANAPOLIS-CARMEL-ANDERSON, IN
31%
ATLANTA-SANDY SPRINGS-ROSWELL, GA
31%
DETROIT-WARREN-DEARBORN, MI
32%
RICHMOND, VA
32%
KANSAS CITY, MO-KS
“A lot of the larger players tend to be going more up market. They are interested in inventory that is a little more expensive. Less yield focused,” said Beasley, noting that Roofstock posts some portfolios on its site in addition to individual properties. “As a consequence a lot of those guys are selling some of their less expensive homes which are appealing to some of the guys who are more interested in yields.” Thanks in part to a nascent industry of SFR-focused products and services such as Roofstock, smaller and middle- tier investors are becoming more willing to buy outside their backyard, according to Beasley. “I see continued interest in people buying outside of where they live. … Ninety percent of our buyers are buying out of market.
“We’re also seeing a lot of repeat purchasers. Oftentimes the second or third house they just do without even talking to us. People get comfortable with the asset class, they get used to buying remotely and they feel like they can buy on their own.”
GARY BEASLEY CO-FOUNDER AND CEO, ROOFSTOCK
the typical pattern is for the investor to engage directly with the Roofstock team on the first purchase but then employ a more do-it-yourself strategy on subsequent purchases. “Oftentimes the second or third house they just do without even talking to us. People get comfortable with the asset class, they get used to buying remotely and they feel like they can buy on their own.” Financing Options Need to Mature Financing single family rental purchases and portfolios remains one area that
has not adequately matured, according to Dennis Cisterna, CEO at Investability, a services platform targeting middle market and institutional investors in the single family residential sector. “The part of the puzzle where we are kind of lagging behind other real estate assets is the capital markets … this needs to look and feel like multi-family,” Cisterna said. “The goals of the single family rental industry are no different than that of the multi-family industry …
“We’re also seeing a lot of repeat purchasers,” added Beasley, noting that
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NOVEMBER 2017 | ATTOM DATA SOLUTIONS
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