"The appreciation here is artificial."

Voracious real estate investment firms that are buying up thousands of homes in Florida and beyond hope to raise billions of dollars to buy even more homes with a wave of expected initial public stock offerings.

Up to now, many of the firms have lived off money from pension funds, other big institutions, wealthy people and some loans. Florida's state pension board, the State Board of Administration, for example, has $400 million invested in two such funds run by giant private equity firm Blackstone Group and California-based GI Partners.

If the buying spree continues, with ever-rising prices for homes, one player in the business foresees problems.

"It's scary," said Jordan Kavana, whose Miami-based investment firm, Transcendant Investment Management, owns homes in Florida and the Southeast. "Honestly, we see another bubble coming."

Read more at TBO.com.