REO Properties Are Now Rentals?

My primary areas of Managing Investment Properties have been Natomas, Land Park, Greenhaven, Pocket, Sacramento and Elk Grove.

Gone are the days the banks and lenders only buy and sell property. Rentals are the only other option.

We all know that the lack of available credit, loss in value and overall economic conditions have taken the Real Estate world and turned it upside down. I guess it was only a matter of time before banks would enter the property management business! Yes banks/lenders calling on property management services for their extensive inventory. What does this mean?

Even investors whom have recently purchased budles of debt or lenders have found a brighter side in holding the properties for income now with the intention to sell in 1-5yrs for a much improved asking price.

Well I know one thing, the more REOs that turn into rentals, the more saturated the rental market will be. So far in the last month, I have noticed a significant increase of rental home inventory throughout the area. Rental values have not maintained themselves or increased in months. This is all pointing to further value losses at least through spring.

Now it the time to be smart. It takes experience to navigate a rental market such as this and to know what to do and when to act. Seek professional advice from a skilled and knowledgeable Property Manager.

Please feel free to comment or share your experience.