The rise of the out-of-state mom and pop investor: New companies seek high income coastal buyers for out-of-state investment properties.
ByIt appears that rental Armageddon has now gone mainstream. Nearly a decade ago when the first housing bubble was taking off, cautious buyers lamented about the high prices in many coastal areas as they do today. “But real estate is the only way to get rich!” Okay. Then why not buy rental properties out of state? Of course this largely fell on deaf ears since house horny people only wanted to out compete their neighbors in the race to foreclosure glory. After 7,000,000 foreclosures and with 1,000,000 of those happening in California, most people have forgotten the past. Now we’re left with wonderful selection bias where those who timed the market (either by luck or foresight) are telling others that timing the market is impossible. Some people did buy investment properties out in Nevada and Arizona during the early days of the last bubble but these were largely flippers or people who thought they were wealthy enough to have a second home. Rare was the person looking to buy-and-hold for income purposes. So it comes as no surprise that there are now companies catering to high income coastal investors who realize a bubble is occurring but still want the benefits of owning real estate…
