My hunch is that most of these will be sold to the single family home REITs like Invitation Homes (INVH) and American Homes 4 Rent (AMH).
Invitation Homes seems happy as a clam to buy in their preferred markets (roughly where Zillow is playing) at 5% cap rates.
Zillow has 7,000 homes at $2.8 billion, which implies an average of $400k. Those homes would have to rent for an average of ~$1,667/mo to get to an average of $400k at a 5% cap rate.
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