Invitation Homes

1. Cash flow risks: Evictions, maintenance costs, tax increases or other regulations may increase costs for Invitation Homes or decrease rental income.

2. Credit risks: Defaulting tenants and rental delinquency represent a key risk to Invitation Homes’ business model since it relies on tenants to pay rent regularly.

3. Inflation risks: The devaluation of the U.S. dollar will increase operating costs and make investment profits less valuable in the long run.

4. Interest rate risks: Interest rates are a key determinant of whether or not Invitation Homes can purchase new homes at a rate of return to cover operating expenses and debt service expenses.

5. Geographical risks: If certain areas experience a sudden drop in demand or changes in tenant preferences, it could lower rental income and affect the returns to investors.

6. Property-related risks: Property damage threatens the security and safety of tenants and the integrity of the housing structures.

7. Regulatory risks: Local, state, and federal laws governing tenant-landlord relationships can impact the economics of the rental model and change the return prospects of the investment.