Buyers of MBS like the diversity Freddie offers, but some prefer the longer investment horizon offered by Fannie.

You said she’s retired but you didn’t state her age or investment horizon.

When I ask if they have any properties or have anything on the horizon, they all say no!

I am looking at broadening my horizons in the investment world and this is something that I have been very curious about.

Welcome to BiggerPockets, this social networking platform and site has really broadened the horizons of many investors and professionals including myself as well as awesome relationships formed and partners partnered.

Vacancy is the major reason that investment properties don't work out. (5-8% vacancy means a loss of $2800-4500 over 4 yrs) I can help you run some numbers if you'd like but over a 4-year time horizon, you come out well ahead compared to renting. 

That 1200/mo saving is just shy of 15K, which in a years time can put you in a better position to purchase a better deal or a 2 bed as others have pointed out.Real estate investors need to be thinking on a long term horizon and sometimes that means waiting if there is better opportunity in a few months or whatever.

Jeremy was most likely the one thinking in rather short-term horizons, since he expected to be retired by now.

Any rent growth and cap rate compression can be eaten up by resale costs in a 3 to 4 year time horizon to exit.

Also, with higher taxes on the horizon, real GDP might slow which could also limit federal tax revenue.