Who is Investing in the Uninvestable Markets?

[Colin Reid]

This is purely curiosity. 

We hear all the time about aspiring investors who are priced out of their local markets, experienced investors who invest far from their homes, and markets that are too expensive to work in. Markets like this exist all over the country.

Let's use San Francisco as an example.

We all know it's one of the priciest markets in the country. We often hear how it's too expensive for homeowners to even buy there, muchless invest successfully. Many people live there, and have to rent there.

So who owns all the rental units? Someone has to. And they can't all be losing money. Who are they? What are their criteria for analyzing their deals? Have they all owned their properties for decades? Do they never change hands? Is it impossible for a new investor [to the market, or to investing in general] to get into the market?