I have been interested to a certain extent too. The distance, extra taxes (check these out thoroughly) and lack of control are a barrier. Previous poster is correct as it has become a real yield play with some gross yields being around the 12% region. I am still looking at options and think that maybe a fund or an ETF would be the safer, easier route. Unfortunately, we are limited here in Australia in this area.
There is one in particular which is set up specifically for Australians investing in the US and it is called the Dixon US Master fund (from memory). However, it has copped some bad press over the last 6 months for some of their purchases and question marks over the areas they are focusing on. They are targeting the New York market and are looking to buy up to 200 properties all within a group of about 7 suburbs (from memory) where there is a population density and a tight rental market.
The criticisms of this fund are based on their purchasing and basically paying double to triple in some cases from people who were just flipping properties which were purchased on months prior. However, in some of those cases, renovations were made. I was quite interested in the fund until i read the negative press and it was from a couple of different sources. It is an interesting fund and warrants further investigating. I sent a few emails and was informed that they intend on listing on the ASX and are looking at 20 July. It could be worth a look.
Other than that, I was thinking of looking at some of the ETF's or funds in the US. Some of the home building ETF's and funds have done really well this, so companies with exposure to the market could be worth it. Also, read or saw it somewhere recently over a couple of huge US funds that are launching towards the end of the year that are basically going in and by foreclosed homes, doing them up and looking for 10+ % yield, but haven't got that far to find out who they are.
