Morgan Stanely released an extensive analysis of the Buy-to-Rent real estate business model in the United States and was overall very positive about the growth potential and returns.

Institutional investment in buy-to-rent real estate was estimated to be $17B as of the 2013 summer, and Morgan Stanley saw the potential of the sector to grow to roughly $100B. The primary reasons for such a bullish outlook are the fact that most firms are buying below replacement cost (as Phoenix Capital Fund-US is) and there is the prospect of strong cash flows moving forward. 

They also reported that much of the distressed supply has been bought in Southern California, Phoenix and Las Vegas, and thus, prices are expected to rise in these areas, while other parts of the country should see greater potential for buy-to-rent real estate purchasing. 

If you are interested in viewing the report in its entirely please click here.