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A comment on Startup Pays Cash to Buy Homes, Flip Them. Parent comment

Re:Startup Pays Cash to Buy Homes, Flip Them by imglorp on Friday January 22, 2016 @10:11AM (#10953108)
Not a money person. ELI5 why it's not like dollar cost averaging on their part, if they're set up for long term? They might be stuck with more inventory in the dips, but they'd also be buying in the dips and they'd be selling higher when the market recovered.
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Re:Startup Pays Cash to Buy Homes, Flip Them by arijun on Friday January 22, 2016 @10:20AM (#10953162)
It would be if you could weather the dips. But, given their high leverage, they might find themselves unable to pay the interest and default.
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Re:Startup Pays Cash to Buy Homes, Flip Them by jdross on Friday January 22, 2016 @11:00AM (#10953445)
It's fair to say we spend a considerable amount of time thinking about this. I'll give more detail in answer to parent.
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