REO business?

As you know, I am in one of the highest housing cost areas(SFBA). With many high techs moved to SF City, small investors bought lots of properties and rented out. The monthly rent was often low 5 figures. With the pandemic, companies allowed workers to work at home or anywhere in the US. Tech workers many left SFBA. Since early 2020 rent had dropped -30%. Then the remaining renters many stopping paying rent while staying virtually for free since early 2020. I know two rental properties were sold with the tenants not showing. One was a 4- plex. Many tenants in SF were small businessmen figured the government will take care of their failing business. Pay rent, utilities. Many renters now bought new cars. A few claim that they are saving for the down payment for a home. Small investors, apts owners may be on the chopping block. One church elder estimated non-rent affects 30% of rental housings. Also, San Bernadino County, CA is also flooded with landlords in trouble.
May be 4-5% landlords have heard from State that they are getting their overdue reimbursement. Most are 20-30K. Our governor who promised to pay 100% rent back is on the chopping block in a few days so he is making a lot of promises.

Replies

- - Sam Shueh > Frank Popeleski September 1, 2021 at 8:40am
    
    As you know, I am in one of the highest housing cost areas(SFBA). With many high techs moved to SF City, small investors bought lots of properties and rented out. The monthly rent was often low 5 figures. With the pandemic, companies allowed workers to work at home or anywhere in the US. Tech workers many left SFBA. Since early 2020 rent had dropped -30%. Then the remaining renters many stopping paying rent while staying virtually for free since early 2020. I know two rental properties were sold with the tenants not showing. One was a 4- plex. Many tenants in SF were small businessmen figured the government will take care of their failing business. Pay rent, utilities. Many renters now bought new cars. A few claim that they are saving for the down payment for a home. Small investors, apts owners may be on the chopping block. One church elder estimated non-rent affects 30% of rental housings. Also, San Bernadino County, CA is also flooded with landlords in trouble.
    May be 4-5% landlords have heard from State that they are getting their overdue reimbursement. Most are 20-30K. Our governor who promised to pay 100% rent back is on the chopping block in a few days so he is making a lot of promises.
Ellen J. Becker August 11, 2021 at 2:49am

REO business is dead right now.
Jesus (Jesse) Gonzalez August 9, 2021 at 2:34am

Spring of 2022 is optimistic in my opinion. We need to keep in mind, President Biden was part of the Obama Administration who killed off REO in the name of home preservation. By introducing leasebacks and pushing REOs into long-term rental strategies vs. listing them and selling them Biden has a blueprint to follow to avoid any ugly political fallout from evicting homeowners in an election cycle. So, maybe I'm crazy but, I think REO is going to be slow for sometime to come.
- Karen Gray > Jesus (Jesse) Gonzalez August 15, 2021 at 10:43am
  
  Agree

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