Fannie Mae mulls bulk sales that would turn homes into rentals
(NEWSER) - Wall Street firms may soon have a new gig: landlord. A number of them are looking into getting directly involved in real estate, buying up foreclosed properties from Fannie Mae in bulk, reports the Wall Street Journal . They couldn't then flip the houses—per the deal, they would rent out the properties and not resell them for several years, in an attempt to unclog the housing market. And that arrangement likely sounds fine to many investors: Goldman Sachs economists pegged the annual yield on rental units at a 6.3% average nationwide, though that figure topped 8% in some areas; mortgage bonds, meanwhile, are yielding about 3%. More»
