Once rentals are cash flow positive, investors should be buying rental properties. That’s what I think.

As far as buyers on the sidelines, I have my doubts. Everyone who wanted to buy has done so, as low interest rates and loose lending pushed demand forward. This caused home ownership rates to go up from its historical rate of 50% in the 1950’s, and 64% since 1980. Today we are at almost 70%. Who can possibly be left to buy? Illegals? Babies? Below 500 FICO scores? The unemployed?

SD Realtor, can you share some anecdotes of the type of people waiting on the sidelines, and how many you think there are.