INVH/AMH are insanely undervalued right now. Buy the dip.

They tanked 6-7% today because Trump says he wants to ban institutional investors from buying Single family homes. On the surface, this sounds really bad for them. Their business model is renting out SFH, so doesn't this threaten them? However, there are a number reasons why this sell off is is irrational, and a huge buying opportunity. 1. Banning institutional investors from buying SFH doesn't mean they have to sell off their existing properties. It just means they can't acquire more properties. So AMH/INVH can continue to make bank off of their existing properties. 2. The stock would be diluted less because these REITs would stop expanding; all cash flow would be able to go to buybacks/dividends instead of acquiring new properties. 3. At the same time as shares stop expanding, Institutional Investors wanting exposure to SFH prices would need to buy REITs, because they can no longer buy SFH directly. 4. INVH/AMH are already trading significantly below the underlying value of their assets minus debts. There is ~30-50% upside if the stocks traded at their intrinsic value, even before considering income. 5. Any regulation requires congress to codify it, and even Trump said he will ask congress. So there's a high chance it either doesn't happen, or whatever does happen is some watered down regulation.