Renting vs Buying a home. If you are an investor or thinking about investing I can see both opportunity and struggle.

That enormous gap between rent and mortgage is essentially why institutional investors (Wall Street) have stopped buying for now. Even if they have different debt than an average home buyer the rent just can’t keep up with the cost of capital.

So what’s the good news if you are an individual investor (not a big Wall Street investor)?

1. You are not competing aginst them at this time for ideal rental properties. It’s all you!

2. Because people are struggling purchasing a home they instead turn to rent a home. Demand is propped up.

3. You can negotiate with sellers more in this softer market. If you have cash you are really in the driver seat when approaching a seller.