The goal here isn't to "house flip," but to rent out homes and take in steady income. The upshot, some argue, is that real buyers are squeezed out of the market by the big dogs.
Perennially fascinated by the goings-on in Manhattan's "hip" sidekick
"I'd say by the spring, maybe 70% of the sales we were seeing were to
While his fund has sold a few properties already, Mr. Dixon says the general idea is to hold onto the properties, deriving steady income from rents. Mr. Dixon says that in the early years, as the fund invests in homes, renovates them and rents them, he expects returns could average about 5 percent each year. But as property values and rents increase, he estimates those returns could climb to 12 to 18 percent annually.
Not bad! While the development in Brooklyn's hotter areas like Williamsburg has been long chronicled, now hedge funds are buying up "dilapidated brownstones" farther out in the borough.