It's getting harder to make a bundle buying up foreclosures and renting them out.
NEW YORK (CNNMoney) (January 2, 2014)
The auction prices of homes climbed faster than rents in 2013, so returns on investment dropped, according to a report from CoreLogic.
That’s a change from the past several years. In many cities where mortgage defaults spiked after the housing crash, investors were able to buy foreclosed homes at prices so low they were able to make big rental profits.
The practice is still profitable, but in many places not as much as it was.
Commentary by Bob Karp, Karp Properties: While Sierra Vista, Arizona has not seen the dramatic increase in prices found in other parts of the country, the rental market for single family homes is very soft. Call our office to get more information on current local market conditions.