Social media is flooded with real estate promotions, and no one is sure what laws apply. But when things go wrong, investors and tenants have a lot to lose
Last summer, Hamilton realtor Sean St Cyr promoted a lucrative real estate investing opportunity across a number of Facebook groups. Investors could receive an average annual return of 20.2 per cent, the post stated, if they gave him a minimum of $100,000 to purchase a derelict three-storey building in the city’s east end, an area that has been in decline since a steel plant there started running into trouble decades ago.
“Have you ever wanted to learn how to make serious money in real estate like the pros?” Mr. St Cyr said in one of his many promotions for the deal. On Facebook, Instagram and LinkedIn, Mr. St Cyr regularly shares tips with his thousands of followers about how to make money through real estate investing. They are posted alongside photos of his travels and meals from the 35 countries he says he has visited.
Mr. St Cyr, a self-described international real estate investor and foodie, is one of the many investors looking for other people’s money, or OPM, on social media to fund real estate deals. He and legions of other promoters have helped fuel the real estate investing craze in Canada that revved up when home prices soared and COVID-19 restrictions led people to spend more time online.
Every day, across the country, there’s a steady stream of requests in Facebook groups and personal pages for money to buy rental properties. Many of the promoters are everyday Canadians who have learned investing techniques online themselves. Some of them promise mind-blowing profits and often dispense real estate investment advice.
No one knows how many investors have got involved in real estate because of this explosion of online promotion. But over the first year of the pandemic, investor buying of residential properties doubled in Canada. By the middle of last year, investors accounted for more than a fifth of the country’s home purchases.
However, with interest rates rising and real estate markets cooling, promoters may not be able to deliver the profits they have promised their investors. That has upped the pressure on them to further raise rents, worsening the country’s affordable housing problem at a time when inflation has eaten away at Canadians’ pocketbooks.
When things go wrong with real estate, they can really go wrong. Tenants, including society’s most vulnerable, can be harshly evicted in the name of investment returns. Investors, many of whom call themselves risk-averse, lose their life savings. And no one has a full grasp of the impact these investors have on the real estate market.
Regulators do not appear to be paying attention, either. Many promotions appear to be skirting securities rules. Promoters are either unaware of the rules or know they can get away with not complying with them. Without enforcement, promoters are raising capital with little to no legal scrutiny…Continue reading
Minority communities have been the hardest hit financially by the current spike in consumer prices and housing costs, with high percentages of Black, Latino and Native American families reporting serious financial problems and even threats of eviction, according to a survey published Monday by the Harvard T. H. Chan School of Public Health, NPR and the Robert Wood Johnson Foundation.
With the annual increase in consumer prices hitting a 40-year high of 9.1% in June, Americans, by a wide margin, cite inflation as the number one problem facing the U.S. But the actual impact on individual households is more dispersed. For example, in the new survey, 58% of Black adults, 56% of Latinos and 69% of Native Americans say inflation has caused them serious financial problems, compared to 44% of white and 36% of Asian adults.
Soaring rents are similarly hitting certain minority households the hardest. In the new survey, 16% of Black renters, 10% of Latino renters and 21% of Native American renters reported they had been evicted or threatened with eviction in the past year. That compares to 9% of white and 4% of Asian families. “This is just a warning from this survey, that unless the government can provide some help for vulnerable populations, a year from now they are going to have more people who are homeless,” said Robert J. Blendon, co-director of the survey and an emeritus professor of Health Policy and political analysis at the Harvard T.H. Chan School of Public Health
Programs of emergency rental aid helped around 5 million American families during the early months of the pandemic, with 1.5 million fewer evictions compared to pre-pandemic levels. After 22 million Americans lost their jobs during the start of the pandemic, Congress provided $25 billion in emergency rental assistance in the Coronavirus Aid, Relief, and Economic Security Act (CAR AR+3%ES Act) passed in March 2020. A year later, in the American Rescue Plan, it added another $21.55 billion of rental assistance.
Meanwhile, the emergency rental funds Congress appropriated have either been used up or are being returned to the federal government unspent. For example, last Thursday, Mississippi Governor Tate Reeves announced his state would halt the federally-funded Rental Assistance for Mississippians Program by Aug. 15, meaning as much as $130 million for the program would be returned to the federal government.
California, having used up its federal money, ended its Covid-19 rental assistance program on March 31, 2022. It sent more than $4 billion to 344,000 households –but around 5,400 tenants and landlords have received emails asking to return money received in Covid-19 rent relief.
The housing component of the CPI increased 5.6% in the 12 months ended in June, but that includes costs to both homeowners and renters. In many places renters have seen far greater increases. According to housing data collected by RedfinRDFN+14.3%, average asking rents in June were up 14% compared to June 2021. In some sunbelt cities like Miami, rent has increased nearly 40%.
The recent spike in rent prices leaves low-income and minority groups in particularly precarious situations. A May report by the Federal Reserve Board showed that as of last fall, about half of renters with income between $25,000 and $49,999 were already “cost burdened”—meaning they were spending more than 30% of their income on rent. In the Fed survey, 44% of Black households and 37% of Hispanic households reported they were renters, compared with just 21% of white households.
“Unless some sort of emergency help is provided, a substantial number of minority populations are going to be evicted over the next year,” Blendon warns.
Your home is likely your life’s biggest and proudest purchase: all the painstaking measures you took—countless property searches, contract negotiations, inspections, and closing—to arrive at the dream of homeownership. Now, it’s time to sell. What next?pr
Did you know that your home is considered a capital asset, subject to capital gains tax? If your home has appreciated in value, you could be required to pay taxes on the profit.
However, thanks to the Taxpayer Relief Act of 1997, most homeowners are exempt. If you are single, you will pay no capital gains tax on the first $250,000 of profit (excess over cost basis). Married couples enjoy a $500,000 exemption. There are, however, some restrictions.
Key Takeaways
You can sell your primary residence and be exempt from capital gains taxes on the first $250,000 if you are single and $500,000 if married filing jointly. This exemption is only allowable once every two years.
You can add your cost basis and costs of any improvements that you made to the home to the $250,000 if single or $500,000 if married filing jointly. How Much Is Capital Gains Tax on Real Estate? To be exempt, the home must be considered a primary residency based on Internal Revenue Service (IRS) rules. These rules state that you must have occupied the residence for at least two of the last five years.
If you buy a home and a dramatic rise in value causes you to sell it a year later, you would be required to pay capital gains tax. If you’ve owned your home for at least two years and meet the primary residence rules, you may owe tax on the profit if it exceeds IRS thresholds. Single people can exclude up to $250,000 of the gain, and married people filing a joint return can exclude up to $500,000 of the gain.
Short-term capital gains are taxed as ordinary income, with rates as high as 37% for high-income earners; long-term capital gains tax rates are 0%, 15%, 20%, or 28%, with rates applied according to income and tax filing status.
This rule even allows you to convert a rental property into a primary residence, because the two-year residency requirement does not need to be fulfilled in consecutive years. The 2-in-5-year rule For taxpayers with more than one home, a key point is determining which is the primary residence.
The IRS allows the exclusion on only one’s primary residence, but there is some leeway in just which home qualifies. The two-in-five-year rule comes into play. Simply put, this means that during the previous five years, if you lived in a home for a total of two years, or 730 days, that can qualify as your primary residence. The 24 months do not have to be in a particular block of time. However, for married taxpayers filing jointly, each spouse must meet the rule.
How the Capital Gains Tax Works with Homes
Suppose you purchase a new condo for $300,000. You live in it for the first year, rent the home for the next three years, and when the tenants move out, you move in for another year. After five years, you sell the condo for $450,000. No capital gains tax is due because the profit ($450,000 – $300,000 = $150,000) does not exceed the exclusion amount. Consider an alternative ending in which home values in your area increased exponentially.
In this scenario, you sell the condo for $600,000. Capital gains tax is due on $50,000 ($300,000 profit – $250,000 IRS exclusion). If your income falls in the $40,400–$441,450 range, your capital gains tax rate as a single person is 15% in 2021.5 (The income range rises slightly, to the $41,675–$459,750 range, for 2022.)6 If you have capital losses elsewhere, you can offset the capital gains from the sale of the house by those losses, and up to $3,000 of those losses from other taxable income.
2022 Long-term Capital Gains Rates
Filing Status
0% Tax Rate
15% Tax Rate
20% Tax Rate
Single
< $41,675
$41,675 to $459,750
> $459,750
Married filing jointly
< $83,350
$83,350 to $517,200
> $517,200
Married filing separately
< $41,675
$41,675 to $258,600
> $258,600
Head of household
< $55,800
$55,800 to $488,500
> $488,500
Applicable to the Sale of a Principal Residence
2022 Long-term Capital Gains Rates
Filing Status
0% Tax Rate
15% Tax Rate
20% Tax Rate
Single
< $41,675
$41,675 to $459,750
> $459,750
Married filing jointly
< $83,350
$83,350 to $517,200
> $517,200
Married filing separately
< $41,675
$41,675 to $258,600
> $258,600
Head of household
< $55,800
$55,800 to $488,500
> $488,500
Applicable to the Sale of a Principal Residence Requirements and Restrictions If you meet the eligibility requirements of the IRS, you’ll be able to sell the home free of capital gains tax. However, there are exceptions to the eligibility requirements, which are outlined on the IRS website.The main major restriction is that you can only benefit from this exemption once every two years. Therefore, if you have two homes and lived in both for at least two of the last five years, you won’t be able to sell both of them tax free.
The Taxpayer Relief Act of 1997 significantly changed the implications of home sales in a beneficial way for homeowners. Before the act, sellers had to roll the full value of a home sale into another home within two years to avoid paying capital gains tax. However, this is no longer the case, and the proceeds of the sale can be used in any way that the seller sees fit. When Is a Home Sale Fully Taxable? Not everyone can take advantage of the capital gains exclusions. Gains from a home sale are fully taxable when:
The home is not the seller’s principal residence
The property was acquired through a 1031 exchange (more on that below) within five years
The seller is subject to expatriate taxes
The property was not owned and used as the seller’s principal residence for at least two of the last five years prior to the sale (some exceptions apply)
The seller sold another home within two years from the date of the sale and used the capital gains exclusion for that sale
Example of Capital Gains Tax on a Home Sale Consider the following example: Susan and Robert, a married couple, purchased a home for $500,000 in 2015. Their neighborhood experienced tremendous growth, and home values increased significantly. Seeing an opportunity to reap the rewards of this surge in home prices, they sold their home in 2020 for $1.2 million. The capital gains from the sale were $700,000.As a married couple filing jointly, they were able to exclude $500,000 of the capital gains, leaving $200,000 subject to capital gains tax. Their combined income places them in the 20% tax bracket. Therefore, their capital gains tax was $40,000.
How to Avoid Capital Gains Tax on Home Sales Want to lower the tax bill on the sale of your home? There are ways to reduce what you owe or avoid taxes on the sale of your property. If you own and have lived in your home for two of the last five years, you can exclude up to $250,000 ($500,000 for married people filing jointly) of the gain from taxes.
Adjustments to the cost basis can also help reduce the gain. Your cost basis can be increased by including fees and expenses associated with the purchase of the home, home improvements, and additions. The resulting increase in the cost basis thereby reduces the capital gains.Also, capital losses from other investments can be used to offset the capital gains from the sale of your home. Large losses can even be carried forward to subsequent tax years.
Let’s explore other ways to reduce or avoid capital gains taxes on home sales. Use 1031 Exchanges to Avoid Taxes Homeowners can avoid paying taxes on the sale of their home by reinvesting the proceeds from the sale into a similar property through a 1031 exchange. This like-for-like exchange—named after Internal Revenue Code Section 1031—allows for the exchange of like property with no other consideration or like property including other considerations, such as cash.
The 1031 exchange allows for the tax on the gain from the sale of a property to be deferred, rather than eliminated.Owners—including corporations, individuals, trust, partnerships, and limited liability companies (LLCs)—of investment and business properties can take advantage of the 1031 exchange when exchanging business or investment properties for those of like kind.The properties subject to the 1031 exchange must be for business or investment purposes, not for personal use.
The party to the 1031 exchange must identify in writing replacement properties within 45 days from the sale and must complete the exchange for a property comparable to that in the notice within 180 days from the sale.9Since executing a 1031 exchange can be a complex process, there are advantages to working with a reputable, full-service 1031 exchange company.
Given their scale, these services generally cost less than attorneys who charge by the hour. A firm that has an established track record in working with these transactions can help you avoid costly missteps and ensure that your 1031 exchange meets the requirements of the tax code. Convert Your Second Home into Your Primary Residence Capital gains exclusions are attractive to many homeowners, so much so that they may try to maximize its use throughout their lifetime.
Because gains on non-primary residences and rental properties do not have the same exclusions, more people have sought clever ways to reduce their capital gains tax on the sale of their properties. One way to accomplish this is to convert a second home or rental property to a primary residence.
A homeowner can make their second home as their primary residence for two years before selling and take advantage of the IRS capital gains tax exclusion. However, stipulations apply. Deductions for depreciation on gains earned prior to May 6, 1997, will not be considered in the exclusion.10According to the Housing Assistance Tax Act of 2008, a rental property converted to a primary residence can only have the capital gains exclusion during the term in which the property was used as a principal residence.
The capital gains are allocated to the entire period of ownership. While serving as a rental property, the allocated portion falls under non-qualifying use and is not eligible for the exclusion.10To prevent someone from taking advantage of the 1031 exchange and capital gains exclusion, the American Jobs Creation Act of 2004 stipulates that the exclusion applies if the exchanged property had been held for at least five years after the exchange.12An IRS memo explains how the sale of a second home could be shielded from the full capital gains tax, but the hurdles are high.
It would have to be investment property exchanged for another investment property. The taxpayer has to have owned the property for two full years, it has to have been rented to someone for a fair rental rate for at least 14 days in each of the previous two years, and it cannot have been used for personal use for 14 days or 10 percent of the time it was otherwise rented, whichever is greater for the previous 12 months.In short, if it’s a vacation home, it’s not your primary residence and it’s not an investment property, then its sale is subject to capital gains taxes.
How Installment Sales Lower Taxes Realizing a large profit at the sale of an investment is the dream. However, the corresponding tax on the sale may not be. For owners of rental properties and second homes, there is a way to reduce the tax impact. To reduce taxable income, the property owner might choose an installment sale option, in which part of the gain is deferred over time. A specific payment is generated over the term specified in the contract.
Each payment consists of principal, gain, and interest, with the principal representing the nontaxable cost basis and interest taxed as ordinary income. The fractional portion of the gain will result in a lower tax than the tax on a lump-sum return of gain. How long the property owner held the property will determine how it’s taxed: long-term or short-term capital gains. How Real Estate Taxes Work Taxes for most purchases are assessed on the price of the item being bought.
The same is true for real estate. State and local governments levy real estate or property taxes on real properties; these collected taxes help pay for public services, projects, schools, and more.Real estate taxes are ad valorem taxes, which are taxes assessed against the value of the home and the land it sits on. It is not assessed on the cost basis—what was paid for it. The real estate tax is calculated by multiplying the tax rate by the assessed value of the property. Tax rates vary across jurisdictions and can change, as can the assessed value of the property. However, some exemptions and deductions are available for certain situations.
How to Calculate the Cost Basis of a Home The cost basis of a home is what you paid (your cost) for it. Included are the purchase price, certain expenses associated with the home purchase, improvement costs, certain legal fees, and more.Example: In 2010, Rachel purchased her home for $400,000. She made no improvements and incurred no losses for the 10 years that she lived there. In 2020, she sold her home for $550,000.
Her cost basis was $400,000, and her taxable gain was $150,000. She elected to exclude the capital gains and, as a result, owed no taxes. What Is Adjusted Home Basis? The cost basis of a home can change. Reductions in cost basis occur when you receive a return of your cost. For example, you purchased a house for $250,000 and later experienced a loss from a fire. Your home insurer issues a payment of $100,000, reducing your cost basis to $150,000 ($250,000 original cost basis – $100,000 insurance payment).
Improvements that are necessary to maintain the home with no added value, have a useful life of less than one year, or are no longer part of your home will not increase your cost basis.
Likewise, some events and activities can increase the cost basis. For example, you spend $15,000 to add a bathroom to your home. Your new cost basis will increase by the amount that you spent to improve your home. Basis When Inheriting a Home If you inherit a home, the cost basis is the fair market value (FMV) of the property when the original owner died.15 For example, say you are bequeathed a house for which the original owner paid $50,000. The home was valued at $400,000 at the time of the original owner’s death. Six months later, you sell the home for $500,000.
The taxable gain is $100,000 ($500,000 sales price – $400,000 cost basis).The FMV is determined on the date of the death of the grantor or on the alternate valuation date if the executor files an estate tax return and elects that method.16 Reporting Home Sale Proceeds to the IRS It is required to report the sale of a home if you received a Form 1099-S reporting the proceeds from the sale or if there is a non-excludable gain.
Form 1099-S is an IRS tax form reporting the sale or exchange of real estate. This form is usually issued by the real estate agency, closing company, or mortgagee. If you meet the IRS qualifications for not paying capital gains tax on the sale, inform your real estate professional by Feb. 15 following the year of the transaction.
The IRS details what transactions are not reportable:
If the sales price is $250,000 ($500,000 for married people) or less and the gain is fully excludable from gross income. The homeowner must also affirm that they meet the principal residence requirement. The real estate professional must receive certification that these attestations are true.
If the transferor is a corporation, a government or government sector, or an exempt volume transferor (someone who has or will sell 25 or more reportable real estate properties to 25 or more parties)
Non-sales, such as gifts
A transaction to satisfy a collateralized loan
If the total consideration for the transaction is $600 or less, which is called a de minimus transfer
Special Considerations What happens in the event of a divorce or for military personnel? Fortunately, there are considerations for these situations. In a divorce, the spouse granted ownership of a home can count the years that the home was owned by the former spouse to qualify for the use requirement.3 Also, if the grantee has ownership in the house, the use requirement can include the time that the former spouse spends living in the home until the date of sale.
Military personnel and certain government officials on official extended duty and their spouses can choose to defer the five-year requirement for up to 10 years while on duty. Essentially, as long as the military member occupies the home for two out of 15 years, they qualify for the capital gains exclusion (up to $250,000 for single taxpayers and up to $500,000 for married taxpayers filing jointly).
Capital Gains Taxes on Investment Property Real estate can be categorized differently. Most commonly, it is categorized as investment or rental property or principal residences. An owner’s principal residence is the real estate used as the primary location in which they live. An investment or rental property is real estate purchased or repurposed to generate income or a profit to the owner(s) or investor(s).
How the property is classified affects how it’s taxed and what tax deductions, such as mortgage interest deductions, can be claimed. Under the Tax Cuts and Jobs Act of 2017, up to $750,000 of mortgage interest on a principal residence can be deducted. However, if a property is solely used as an investment property, it does not qualify for the capital gains exclusion.
Deferrals of capital gains tax are allowed for investment properties under the 1031 exchange if the proceeds from the sale are used to purchase a like-kind investment. And capital losses incurred in the tax year can be used to offset capital gains from the sale of investment properties. So, although not afforded the capital gains exclusion, there are ways to reduce or eliminate taxes on capital gains for investment properties.
Rental Property vs. Vacation Home Rental properties are real estate rented to others to generate income or profits. A vacation home is real estate used recreationally and not considered the principal residence. It is used for short-term stays, primarily for vacations.Homeowners often convert their vacation homes to rental properties when not in use by them. The income generated from the rental can cover the mortgage and other maintenance expenses. However, there are a few things to keep in mind.
If the vacation home is rented out for less than 15 days, the income is not reportable. If the vacation home is used by the homeowner for less than two weeks in a year and then rented out for the remainder, it is considered an investment property.Homeowners can take advantage of the capital gains tax exclusion when selling their vacation home if they meet the IRS ownership and use rules.
Real Estate Taxes vs. Property Taxes The terms real estate and property are often used interchangeably, as are real estate taxes and property taxes. However, property is actually a broad term used to describe different assets, including real estate, owned by a person; also, not all property is taxed the same.Property taxes, as they relate to real estate, are ad valorem taxes assessed by the state and local governments where the real property is located.
The real estate property tax is calculated by multiplying the property tax rate by real property’s market value, which includes the value of the real property (e.g., houses, condos, and buildings) and the land that it sits on.
Property taxes, as they relate to personal property, are taxes applied to movable property. Real estate, which is immovable, is not included in personal property tax. Examples of personal property include cars, watercraft, and heavy equipment. Property taxes are applied at the state or local level and may vary by state.
Are Home Sales Tax Free?
Yes. Home sales are tax free as long as the condition of the sale meets certain criteria:
The seller must have owned the home and used it as their principal residence for two out of the last five years (up to the date of closing). The two years do not have to be consecutive to qualify.
The seller must not have sold a home in the last two years and claimed the capital gains tax exclusion.
If the gains do not exceed the exclusion threshold ($250,000 for single people and $500,000 for married people filing jointly), the seller does not owe taxes on the sale of their house.1
How Do I Avoid Paying Taxes When I Sell My House?
There are several ways to avoid paying taxes on the sale of your house. Here are a few:
Offset your capital gains with capital losses. Capital losses from previous years can be carried forward to offset gains in future years.
Consider using the IRS primary residence exclusion. For single taxpayers, you may exclude up to $250,000 of the capital gains, and for married taxpayers filing jointly, you may exclude up to $500,000 of the capital gains (certain restrictions apply).
Also, under a 1031 exchange, you can roll the proceeds from the sale of a rental or investment property into a like investment within 180 days.
How Much Tax Do I Pay When Selling My House?
How much tax you pay is dependent on the amount of the gain from selling your house and on your tax bracket. If your profits do not exceed the exclusion amount and you meet the IRS guidelines for claiming the exclusion, you owe nothing. If your profits exceed the exclusion amount and you earn from $40,400 to $441,450, you will owe a 15% tax (based on the single filing status) on the profits.5
Do I Have to Report the Sale of My Home to the IRS?
It is possible that you are not required to report the sale of your home if none of the following is true:
You have non-excludable, taxable gain from the sale of your home (less than $250,000 for single taxpayers and less than $500,000 for married taxpayers filing jointly).
You were issued a Form 1099-S, reporting proceeds from real estate transactions.
You want to report the gain as taxable, even if all or a portion falls within the exclusionary guidelines.
What is the Penalty for Selling a House Less Than Two Years After Purchase?
You probably cannot qualify for the $250,000/$500,000 exemption from gains on selling your primary residence. That’s because to qualify for that exemption, you must have used the home in question as your primary residence for at least two of the previous five years, and you generally can’t use the exemption twice within two years.However, there are exceptions for certain circumstances: Military service, death of a spouse, and job relocation are the most common reasons that might allow you to take at least a partial exemption. The IRS has a worksheet for determining an exclusion limit; see Topic 701.
Do You Pay Capital Gains Taxes When You Sell a Second Home?
Because the IRS allows exemptions from capital gains taxes only on a primary residence, it’s difficult to avoid capital gains taxes on the sale of a second home without converting that home to your primary residence by considering the two-in-five-year rule (you lived in it for a total of two of the past five years). Put simply, you determine that you spent enough time in one home that it is actually your primary residence.If one of the homes was primarily an investment, it’s not set up to be the exemption-eligible home. The demarcation between investment property and vacation property goes like this: It’s investment property if the taxpayer has owned the property for two full years, it has been rented to someone for a fair rental rate for at least 14 days in each of the previous two years, and it cannot have been used for personal use for 14 days or 10 percent of the time that it was otherwise rented, whichever is greater, for the previous 12 months.If you or your family use it for more than two weeks a year, it’s likely to be considered personal property, not investment property, and thus subject to taxes on capital gains, as would any other asset other than your principal residence.
What If You Sell a House Less Than Two Years After Buying It?
You probably cannot qualify for the $250,000 single/$500,000 married-filing-jointly exemption from gains on selling your primary residence. That’s because to qualify for that exemption, you must have used the home in question as your primary residence for at least two of the previous five years, and you generally can’t use the exemption twice within two years.However, there are exceptions for certain circumstances: Military service, death of a spouse, and job relocation are the most common reasons that might allow you to take at least a partial exemption. The IRS has a worksheet for determining an exclusion limit; see Topic 701.
Do You Pay Capital Gains If You Lose Money on a Home Sale?
You can’t deduct the losses on a primary residence, nor can you treat it as a capital loss on your taxes. You may be able to do so, however, on investment property or rental property. Keep in mind that gains from the sale of one asset can be offset by losses on other asset sales up to $3,000 or your total net loss, and such losses may be eligible for carryover in subsequent tax years.If you sell below-market to a relative or friend, the transaction may subject the recipient to taxes on the difference, which the IRS may consider a gift.
Also remember that the recipient inherits your cost basis for purposes of determining any capital gains when they sell it, so the recipient should be aware of how much you paid for it, how much you spent on improvement, and costs of selling, if any.
Illustration by Anson Chan
When things go wrong with real estate, they can really go wrong. Tenants, including society’s most vulnerable, can be harshly evicted in the name of investment returns. Investors, many of whom call themselves risk-averse, lose their life savings. And no one has a full grasp of the impact these investors have on the real estate market.
