Institutional Services
Single Family Rentals in upscale markets are a misunderstood asset class and have been largely ignored by institutional investors. The last 10 years has seen several SFR (single family rental) REITs emerge notably Invitation Homes (INVH) and American Homes for Rent (AMH). These REITs average portfolio home value is about $285,000. These REITs invest for cash flow in the bottom end of the market for two primary reasons: first these homes generally cash flow better right out of the gate, and second their valuation protocol isn’t sophisticated enough to scale the purchase of homes in more upscale markets which offer far greater return potential.