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Buy property where you have no flexibility to scale your space (and thus, debt payments), then offer it to others with maximum flexibility to scale down on a mo
by tyingq 3y ago
Buy property where you have no flexibility to scale your space (and thus, debt payments), then offer it to others with maximum flexibility to scale down on a month-to-month basis.
Guess what happens when demand falters? Though, to be fair, they were losing money before the pandemic...just much closer to break even.
- lgleason 3y agoThe losing money pre-Covid was very typical in a low inflation, low interest rate environment where growth is prioritized over profit for newer companies that recently went through the startup IPO cycle. With high interest rates profitability is more important so it's a vicious cycle right now.
- tyingq 3y agoWell, yes, I get that generally, but you can't lay off your mortgage payments so prioritizing growth is tricky.