Why Mom-and-Pop Investors Are Suddenly Snapping Up These Surprising Markets—And What It Means for You
A Low-Risk Investment Strategy to Replicate
The Journal reports that small real estate private equity firm Stand Capital has devised an investment strategy that enables it to be more nimble in the current market compared to larger financial institutions: They target single-family homes that cost around $250,000. After making a $75,000 down payment and investing $15,000 in the property for light renovations, they then rent the property for $2,000 to $2,200 per month. After three years of 5% annual appreciation, they sell the home at a profit.
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