The worm is turning for investment real estate: American Homes 4 Rent posted a net loss of $14 million. Wells Fargo announces layoffs for 2,300 due to drop in refinancing activity.

Dr. Housing Bubble reports:

It is no secret that Wall Street has been a big player in this current real estate run. The two biggest single-family landlords in this game are Blackstone Group LP’s Invitation Homes followed by California based American Homes 4 Rent (AH4R). The interesting thing about AH4R is that they own about 20,000 properties throughout the country where investors have been diving in head first. AH4R recently announced a $14 million loss and was also reported to be laying off people because of the recent loss. This is an interesting case study coming from the second largest single-family landlord in the country. It is also interesting to dig through the financials since it shows us that some are overplaying the rental game. Property management is an intensive business. Any investor with time in the business realizes that having one or two bad tenants can set you years back in regards to profits. The gross rents must look extremely appealing to those new to the game. Some are quickly going to realize that they may have overestimated their potential profits.

The Obama regime, the Fed, and the FHA: can't create a real demand for housing. Where are the first time home buyers?? How many renters have accumulated enough stuff to need a house???