Buy Rental Properties With Uncle Sam's Cash

I don't make jokes. I just watch the government and report the facts. -- Will Rogers

Our government is unleashing an ocean of cheap financing in the hope of stimulating the economy and preventing further deflation of assets, especially real estate. Although most of this government largesse is going to directly benefit large financial institutions, private-equity shops and hedge funds, there are a couple of ways that smaller investors can directly benefit from it and get their fair share.

Fannie Mae(FNM Quote), Freddie Mac(FRE Quote) and the U.S. Department of Housing and Urban Development are offering generous financing terms for the purchase of apartment buildings priced at or above $1.5 million.

In addition, the agencies will now buy the mortgage paper of investor-owned individual rental properties such as condos or single-family homes being used as rental properties, up to 10 properties per individual owner. ...