Markets & Economy

Auction.com: Buyers adopting the hold-to-rent strategy

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A high percentage of single-family investors still buy to flip; however, noticeable volumes of buyers are adopting the hold-to-rent strategy. Findings of an Auction.com investor activity report show that strategy is largely dependent on investor type, property location, and if the home is purchased online or via live auction. “Most investor segments performed in a manner very consistent with what we’ve been seeing for about a year,” said Rick Sharga, executive vice president of Auction.com. Sharga points to two major trends: the return of the "mom and pop" investor in the single-family rental space and more investors focusing on flipping properties in specific regions. Mom-and-pop investors possess intimate knowledge of their local markets and are willing to buy properties that deliver long-term returns based on month cash flow. Investors looking for short-term profits are eyeing flips in markets where prices have rebounded from the 2008 crash and for-sale hous...