Noticing numerous properties on MLS which are currently rented, income producing, and are under 1% price to rent ratio...and it looks like the current owners have only held for 1-2 years. They are on the market for >100 days at around the same price that they were purchased for. Any idea why investors are bailing on these properties? At face value, they seem like a great investment...what am I missing? Thanks!
It's hard to know why they are lingering on the market without knowing where they are located. There have been many houses in low income areas purchased by investors who may have never spent any time in the market. After purchasing they may have found that they couldn't afford to do many improvements to increase the physical value and flip the property for a profit so just rented for an acceptable price. There are many areas where rental price upside may not be high enough to provide an adequate ROI to the investor if he does many improvements. So now they may just be tired of fooling with the properties and want to bail but don't want to sell for anything less than they purchased the property for so it lingers on the market.