As highlighted in my previous articles, I view REITs as a "safe" investment vehicle for recurring income. I have been looking into residential REITs lately and stumbled upon Front Yard Residential Corporation (RESI). Unfortunately, despite being interested in the sub-sector, the company has too many "red-flags" for me to consider an investment.
Just a brief background on the company, Front Yard Residential Corporation is a residential REIT focused on affordable suburban homes. In particular, the company is focused on single-family homes near metropolitan areas. As of June 2020, the company 14,640 rental properties in its