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More on Silver Bay Realty: The company company currently owns 2,548 homes, with 1,597 purchased...

More on Silver Bay Realty: The company company currently owns 2,548 homes, with 1,597 purchased within the last 6 months. Of those held for longer, the occupancy rate is 91% with average rent of $1,126/mo. With average purchase price of about $121K, it's a rental yield (no expenses yet taken out) of 11.2%.
Comments (5)
  • Brian Bobbitt
    , contributor
    Comments (1888) | Send Message
     
    If TWO is good, perhaps three SPY will be better.
    5 Dec 2012, 09:12 PM Reply Like
  • larry gillis
    , contributor
    Comment (1) | Send Message
     
    Average purchase price 121k average rent 1126/mo. What is the average R.E. taxes without homesteading, what is the average annual cost of Insurance, what is the annual reserve for maintenance and cost for administrating that 2548 home rentals. Without appreciation this a thin deal at beast and the 11.2% yield disappears. We need most!
    Larry Gillis
    6 Dec 2012, 06:13 AM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (1888) | Send Message
     
    Larry, gave your comment a like, but I may add that rental real estate could have a real push in the near term, as buying now is most difficult, and people need nice places. Perhaps, soon, rent to own contracts would make deals like this real sweet.

     

    Capt. Brian
    The Lost Navigator
    6 Dec 2012, 10:42 AM Reply Like
  • pjw5
    , contributor
    Comment (1) | Send Message
     
    $1,126 x 12 months x 91% occ rate / $121K = 10.2%
    6 Dec 2012, 01:17 PM Reply Like
  • NV_GARY
    , contributor
    Comments (1764) | Send Message
     
    It will be interesting to see if ,according to the SEC filing, TWO will distribute shares of the REIT to stockholders. It says it is at their discretion if they are distributed, as well as the timetable.
    Long TWO, AGNC, AMTG, MTGE, NCT, KCAP
    6 Dec 2012, 01:47 PM Reply Like
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