Well, I am not surprised that even hedge funds are buying foreclosures, and am aware that some investment managers have tried this in the Boston market. Single families have proven to be very risky in the past and requires a heavy side of property management. The property management is critical and will grow in expense when you are managing discrete single family properties. You don't want the maintenance crew driving hours between work orders. I see the property management costs eating into the ROI. Investing in multi-family / apartment funds is definitely better.
Be very careful with funds that invest in multi-family and single family investments. Look carefully at the fund and where (part of the country, city, region) the fund is investing. Make sure the investment group has a real track record in real estate and a firm handle on property management. If it sounds too good to be true, it probably is.
Big Money Gets Into Landlord Game from the Wall Street Journal
