>This puts downward pressure on real estate prices in areas which are unprofitable by increasing inventory and decreasing investor demand for rental property.

>This puts downward pressure on real estate prices in areas which are unprofitable by increasing inventory and decreasing investor demand for rental property. Yep, and when this happens it opens up a new market - prior renters who were priced out of the mortgage market before can now become homeowners. There's no economic law stating that middlemen have to take a large cut.