A white paper published by the National Rental Home Council reports that 13% of all occupied homes and 37% of the total rental market are single-family homes. We have seen that first statistic reported to be as high as 28% of occupied homes are rentals when attached, townhouses, condos are included. Despite all the news coverage, the institutional investors collectively own about 1% (160,000 houses) of the rental home inventory, hardly a consolidation. The business case can be summarized simply. With rent increases at 5-8% per annum the CapRate based on the cost of acquisition and rehab is around 5% and higher for low price houses in C neighborhoods. Costs to repair and vandalism for $60,000 houses, the turnover of operating staff, the hidden cost of eviction, turnover, rehab can deplete the theoretical profits. Our view is the house in the B neighborhood in the price range of $100,000-175,000 with rents of $1200-1600 is the sweet spot of the strategy. That product has seem home price appreciation of 8-10% on average. So considered together, CapRate of 5% in cash flow and asset appreciation of 8% delivers 13%. You place debt on those assets and your return reach the high teens, far superior to any other asset class in 2016 or forecast for the next several years. You can acquire, rehab and rent those assets using the same technology and professional firm that represents the largest institutional firms thereby working with the “first team” and not a poor substitute for the group the institutions use.