This is actually one of the few cases where I DO support SOME form of regulation. Commoditizing a single family home is something that should have never been done in the first place.
I'm seeing caps at 50-100 houses, which is reasonable. At $400K average home price in the US, thats $20-40 million in total assets on average, possibly more if they're particularly high value. Even assuming you use a 80/20 debt ratio That's $4-8 million in cash assets towards these properties.
Either way that's more than enough to get into commercial real estate with a 1031 exchange. (IE sell your portfolio and buy some apartment buildings of equal or greater value without having to pay taxes).
My ONLY real concern with this type of thing is specific niche properties like rental cabins. Those aren't really single family homes, but COULD be classified as such depending on the definition, so I'd like some clarification on niche property types
In a lot of cases local regulations (for example, prohibiting any one landlord from owning more than 10% of homes) were overridden by state laws. Many localities still have laws like these on the books, they just aren't allowed to enforce them.
This is actually one of the few cases where I DO support SOME form of regulation. Commoditizing a single family home is something that should have never been done in the first place.
I'm seeing caps at 50-100 houses, which is reasonable. At $400K average home price in the US, thats $20-40 million in total assets on average, possibly more if they're particularly high value. Even assuming you use a 80/20 debt ratio That's $4-8 million in cash assets towards these properties.
Either way that's more than enough to get into commercial real estate with a 1031 exchange. (IE sell your portfolio and buy some apartment buildings of equal or greater value without having to pay taxes).
My ONLY real concern with this type of thing is specific niche properties like rental cabins. Those aren't really single family homes, but COULD be classified as such depending on the definition, so I'd like some clarification on niche property types
In a lot of cases local regulations (for example, prohibiting any one landlord from owning more than 10% of homes) were overridden by state laws. Many localities still have laws like these on the books, they just aren't allowed to enforce them.