Author Topic: High Quality Multi-family REITs - EQR, CPT, ESS, AVB  (Read 831 times)

matts

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Re: High Quality Multi-family REITs - EQR, CPT, ESS, AVB
« Reply #10 on: March 27, 2020, 11:32:13 AM »
What about the manufactured housing park owners? ELS, SUI, UMH

I understand that today they are a bit higher on the risk spectrum, but ELS and SUI have a great track record, and long term, they offer the most affordable kind of housing to a country where housing affordability is a problem for many.

They also own the appreciating part of RE, the land, while letting the "owners" pay for the depreciating "home". Similar to multi-family, they benefit from density and economies of scale (1 security guard, 1 pool etc.). the houses are technically mobile, but in reality, it costs 5-10k to move one, so the vast majority of tenants have no choice but to eat the regular rent escalations.

SUI and ELS have been great investments for years, and now you can get them at a 20-25% discount (from peak).


thepupil

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Re: High Quality Multi-family REITs - EQR, CPT, ESS, AVB
« Reply #11 on: March 27, 2020, 11:33:52 AM »
have always thought those too expensive but awesome companies/biz models. maybe I'll have another look, thanks.

shhughes1116

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Re: High Quality Multi-family REITs - EQR, CPT, ESS, AVB
« Reply #12 on: March 27, 2020, 11:35:14 AM »
I wonder if there will be a lot of shadow-supply/AirBNBs/VRBOs coming on the market to drive down rents.  I keep seeing stories about people who are trying desperately to move their airbnbs to longer term rentals, some pretty troubling stories about people who are engaging in "rent arbitrage"  sounds like of like wework, but worse; of course that's all just narrative/anecdote.

There is a bit of this in my area.  Anecdotally, I know a few of these coming to to the rental market were purchased at insane prices.  I went into these looking for additional rental properties at about 15-20X TTM AFFO.  These were purchased by AirBNB "speculators" at 25-30X TTM AFFO. 

Shortterm, I think there will be a little bit of downward pressure on rental prices in my area.  Longer term, I expect these AirBNB speculators to become insolvent, and these properties will come to the market, leading to some downward pressure on purchase prices.  The inventory for purchase and rental is pretty tight in the DC area (Virginia for me), so I don't expect much long-term impact.   
« Last Edit: March 27, 2020, 11:38:02 AM by shhughes1116 »

matts

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Re: High Quality Multi-family REITs - EQR, CPT, ESS, AVB
« Reply #13 on: March 27, 2020, 11:37:56 AM »
have always thought those too expensive but awesome companies/biz models. maybe I'll have another look, thanks.

sure. would appreciate it if you give us a heads up about what you find. You have been looking very closely across the whole RE asset space so you are in a great position to speak to the relative value of the opportunities.

thepupil

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Re: High Quality Multi-family REITs - EQR, CPT, ESS, AVB
« Reply #14 on: March 27, 2020, 11:40:34 AM »
have always thought those too expensive but awesome companies/biz models. maybe I'll have another look, thanks.

sure. would appreciate it if you give us a heads up about what you find. You have been looking very closely across the whole RE asset space so you are in a great position to speak to the relative value of the opportunities.

well... I think if you were to pop open the performanceanalyzer on my interactive brokers account, ya might feel differently!