• Landsmith LP, based in San Francisco, sold 75 of its 250 homes in Phoenix.
• An influx of investors buy foreclosed houses as rental investments drove the decision.
• The company got $7.5 million for the houses for which it paid $5.2 million over the past year.

"But if people are willing to pay a price that lets us realize an upfront return, we don't need to wait," says James Breitenstein, the firm's chief executive. "The potential for this asset class is being realized sooner than we thought."