Comment by 3rdDeviation

I get the feeling this kind of activity is misunderstood and perceived as repugnant because, unlike most investment options, this one is actively creating haves and have-nots.

Most other investments are fractional, meaning there's a pool of the same asset available to many investors and your purchase doesn't necessarily limit their opportunity. But when you're "investing" in your first home, it's not a decision between safe or unsafe investments, debt or equity (or crypto) - it's a combination of needs and wants. And oftentimes you're in direct competition with someone who wants to make the same investment.

In this case, losers are forced to reallocate more of their income to cover rents and winners are alleviated of that same burden. When the winner is an investor with multiple homes, mom & pop or not, they are claiming the same rents that burden those who have lost their chances to invest because of competition.

Personally, I think people need to start thinking on moral terms when they look to invest their money into rental homes. I've never seen somebody who owns multiple homes actually put any sweat into their equity. At least, none of their own sweat. And rental properties are almost never maintained - they slowly slide into oblivion because every decision is a cash flow decision. When you own the home, the decision to maintain the property reflects personal and social influences, not just long-term returns.