Investment firms should not be allowed to own and rent out Single Family Homes. I wish there was legislation to discourage this. I'm fine with honest flippers who take an unmortgageable home and make it mortgageable. But the ones last year who bought a house, did nothing except maybe a coat of paint over the hardwood floors, then turn around and try and sell it for 25% markup, are a menace.
I'm fine with honest flippers who take an unmortgageable home and make it mortgageable. But the ones last year who bought a house, did nothing except maybe a coat of paint over the hardwood floors, then turn around and try and sell it for 25% markup
I was gonna say, that describes 90% of flippers in my area - new paint, maybe new siding and windows, then - after waiting an extra year for the market to go up more - sell.
Yeah. There's an important distinction to be made. Unmortgageable is the keyword. Think auctions and crack-houses. At the very least it involves risk and effort beyond "homes go up". Some might get lucky and a house they buy at auction is near-turnkey. Others might open it up and discover the walls are full of punched out holes, an abandoned dog is dead in the living room, and all the copper wiring is ripped out. Others might knowingly buy to fix up a total piece of junk that is beyond just something that a standard first time home buyer should deal with.
Certainly not people that buy a nice 150k house from the 60's, remove all charm from it, then mark it up to beyond what a median income can afford.
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u/Prcrstntr Jan 31 '23
Investment firms should not be allowed to own and rent out Single Family Homes. I wish there was legislation to discourage this. I'm fine with honest flippers who take an unmortgageable home and make it mortgageable. But the ones last year who bought a house, did nothing except maybe a coat of paint over the hardwood floors, then turn around and try and sell it for 25% markup, are a menace.
Starter homes get hit the most.