Re:Zillow lost money because they weren't willing to lose money
by erikpukinskis on Saturday November 27, 2021 @04:36PM
(#29363801)
> somehow?
By marking it up and/or appreciation. They buy it for $500/sqft and then rent it for $100/sqft. In that hypothetical the breakeven is 5 years, plus overhead.
If the occupancy doesn’t work out in their favor, they may still make it up in appreciation.
By marking it up and/or appreciation. They buy it for $500/sqft and then rent it for $100/sqft. In that hypothetical the breakeven is 5 years, plus overhead.
If the occupancy doesn’t work out in their favor, they may still make it up in appreciation.
What’s a duration risk?