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If this is true how do investors drive up price?
by carom 4y ago
If this is true how do investors drive up price?
- bombcar 4y agoThe main way if you look at it is investors willing to run on empty - buying houses and then failing to rent them at the amounts they're trying to get, where they sit empty for some time before the investor goes belly up. This reduces the supply of housing in use.
- carom 4y agoSo in this case the investor is taking a few hundred thousand dollar loss so the building can then be sold for a loss and rented at a price that makes market rent make sense? I feel restrictive zoning is a much bigger issue than empty unsustainable houses.
- bombcar 4y agoIt rarely actually happens I think, but it does happen. Zillow and that other home flipping company lost billions in total.