>Unless they can hold out until property values rise and they can sell for a profit.

Sure, if they've got piles of cash sitting around to pay for the loan, insurance and real estate taxes.

Here's another tidbit people don't understand. If the property has more than 4 units, the value of the property is determined almost entirely by the revenue it generates.[1][2] The bank who will provide the loan to the buyer will look at those numbers, and the buyer will look at those numbers. In particular, what people will not look at are the comps (the value of nearby properties). So a "Let's lose money until the property values go up" strategy won't work there.

[1] https://theresabradleybanta.com/value-a-multi-unit-property/ [2] https://www.biggerpockets.com/blog/2016-07-06-multifamily-re...

> "Here's another tidbit people don't understand. If the property has more than 4 units, the value of the property is determined almost entirely by the revenue it generates."

actually, that's pretty straightforwardly "income-based valuation", and it's logical because having more than 4 units means the property is primarily a business and not primarily a residence. businesses are valued by the income (i.e., profits) they generate. the sales comparison method (employing "comps") is primarily used with residences because the more accurate income-based valuation isn't available to residences, as non-income-generating assets. (the third valuation method is cost approach, which is used as a primary method of valuation in markets with low turnover/few comps, and in many tax assessment jurisdictions).