What's Hot: The 4 Projects in the Works (Or on Hold) Near DC's Starburst Intersection | This Week's Find: Fit For Art in the Palisades
The Implications Of Investor-Owned Foreclosures
In recent years, thousands of foreclosed homes across the country saw new life as rentals owned by investors. The Urban Institute has started taking a closer look at these properties, and just published the first report in what will be a multi-part series examining a few case studies.
The first report concentrated on Atlanta, a city that was hit particularly hard by the housing crisis. The researchers interviewed investors, real estate agents and non-profit employees in the city’s Fulton County in an attempt to better understand the practices of investors who seek out single-family homes to rent and to track the flow of these properties in that area.
Here are a few of the main findings from the report:
- Like investors in other cities, those buying foreclosures in Atlanta with the plan to rent them out used cash. In Atlanta, there was a general trend away from short-term buying and “flipping” in 2008-2009 towards buying with the intent to rent in 2010.
- The rate of return for cash purchases of REO properties ranged from 8 to 15 percent. Investors typically put in between $19,000 and $70,000, which included the purchase price and cost of renovations.
- Investors in distressed neighborhoods often prefer tenants with Section 8 housing vouchers. (UrbanTurf has found that this can also be the case in DC.) The report stated that, in addition to the stable rental stream, the voucher creates an incentive to pay bills on time and tenants may be less disruptive.
- Demand from owner-occupants has lessened due to tighter credit standards. The reduced proportion of owners can make a neighborhood less desirable, the researchers stated.
Check out the full report here.
See other articles related to: reo, reo properties
This article originally published at https://dc.urbanturf.com/articles/blog/the_implications_of_investor-owned_foreclosures/6640.
Most Popular... This Week • Last 30 Days • Ever
Our guide for amateur landlords who don't really know what they're doing.... read »
The Massachusetts Avenue Heights home was previously owned by the former chief execut... read »
A large new apartment and townhouse project has been pitched for the growing pipeline... read »
On Friday, Mayor Muriel Bowser and the Office of the Deputy Mayor for Planning and Ec... read »
In this week's Under Contract, we highlight two homes that found buyers just shortly ... read »
Virginia's homebuyer assistance programs can seem complex. This edition of First-Time... read »
The residential projects that have sprouted up on the Maryland and DC sides of the Fr... read »
With a groundbreaking ceremony on Wednesday, the redevelopment of the Georgetown Wes... read »
The immaculately kept 100-year-old house features six bedrooms and four-and-a-half ba... read »
Ten years later, plans to construct nearly 150 townhomes at DC's most hotly debated d... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
- The Essential Guide to Being an Amateur Landlord in DC
- Washington Spirit Owner Michele Kang Lists DC Home for $14.5 Million
- A Two-Phase, 370-Unit Development Pitched For Columbia Pike Gas Station Site
- Apartments, A Plaza + Dave Chapelle: The Future Plans for 14th and U
- Under Contract: That Didn't Take Long
- First-Timer Primer: Virginia's Home Buyer Assistance Programs
- Mall Conversions, Trader Joes? The 1,500 Units in the Friendship Heights Pipeline
- The Four Seasons Private Residences in Georgetown Break Ground
- Now Selling: A 16th Street Heights Victorian on an Island of Its Own
- Reservoir District: 146 Townhomes Planned at McMillan Site Look For Final Design Approval
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro