Investors are rushing in to snap up foreclosed homes, turning them into cash-flowing rental properties for families that can’t afford to buy — or can’t access the funding needed to purchase a home.
In Chicago, however, community leaders are starting to wonder if the investor-led housing boom is a good thing for the long term stability of the community.
A Chicago Tribune story provides the appropriate color:
[I]t wasn’t until workers walked across the street to ask for some water that neighbors Mario Cervantes and Oralia Balderas-Cervantes learned that a corporation, not a consumer, had bought the house, intending to turn it into a rental property. Despite being landlords themselves, the couple aren’t sure they like the idea.
“If it’s going to be a company that is watching out for the community, yes,” Cervantes said. “If it’s going to be a company that is watching out for themselves, no.”
Added Balderas-Cervantes: “I’d rather see a homeowner. A lot of renters don’t care. It’s like renting a car versus buying a car. It’s different.”
