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Linda Reynolds of Newport Beach-based Teles Properties is not only noticing more all-cash buyers interested in buying homes with the aim of renting them, but these inventors are seeking existing rentals.

“I am seeing more people wanting to purchase a rental property, which seems to be a good sign,” she said, adding, “there’s limited inventory in the multi-unit marketplace.”

There’s a downside to all of this. “Investors with all-cash have been in the market for a couple of years, unfortunately they can beat out the entry-level buyer in the lower- to middle-price range because they have all-cash,” she said.

Despite interest rates that are among the lowest in the past 50 years, and lower home prices, these buyers “do have to finance their purchases, and that is why many may loose out to the investor-all-cash buyers.”

Aside from the individual investors, real estate agents themselves seem to be using their own money, or gathering in small numbers, and looking to buy foreclosed upon homes, considering it a quality investment in a distressed asset.

“I have seen a few small groups put together investors with all-cash to purchase properties, usually the distressed properties,” she said. “Overall, all-cash deals are showing up in all areas, and I am seeing more transactions in all ranges that are all-cash than ever before.”

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