As the housing market continues its long, slow road to recovery, savvy investors are placing their bets on a big return in the not-too-distant future, according to the New York Times.
While many Americans are still reticent about entering back into the recently-volatile housing market, investors are jumping in headlong to purchase up homes and apartments to rent.
Investors are rushing into the market to purchase foreclosed or short-sale homes for a steal while mortgage rates are still incredibly low. Then, they fix them up, make them into high-end units and list them for rent, watching their initial investments jump.
One investment company, named Silver Bay Realty Trust, has been particularly bullish. Two Harbors, owner of Silver Bay, is a publicly-traded mortgage real estate investment trust that specializes in finding and renting out distressed homes. As of now, Two Harbors owns 2,200 rental homes and its shares rose 25 percent during the course of the year.
Small-time rental property managers will have to work hard to keep up with large investment companies if they want to keep up a steady incoming flow of rental applications.