How does the accounting work for those losses? ie is $422M = (Total $ from homes sold in Q3) - (Total cost of buying/renovating those homes), or is it (Total $

How does the accounting work for those losses? ie is $422M = (Total $ from homes sold in Q3) - (Total cost of buying/renovating those homes), or is it (Total $ from homes sold in Q3) - (Total $ from homes purchased in Q3)?