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This behavior isn't really capitalism, it is driven by flawed U.S. tax law which allows owners to deduct interest expenses and losses.
by mobilefriendly 9y ago
This behavior isn't really capitalism, it is driven by flawed U.S. tax law which allows owners to deduct interest expenses and losses.
- paganel 9y ago> perhaps even putting the real-estate investor under water if they're leveraged This made me believe that the OP was talking about a loan, contracted from another private entity (like a bank), so that the real-estate investor renting the place at a sub-threshold price would have meant that the initial estimation on which the real-estate investor had received the loan were not met anymore in case of a refinancing (and most of these types of projects get re-financed from time to time).