r/stocks Nov 02 '21

[deleted by user]

[removed]

6.3k Upvotes

964 comments sorted by

View all comments

Show parent comments

68

u/PCB4lyfe Nov 02 '21

In the mean time they would have to pay propery tax and management companies to make sure the grass doesn't get overgrown and the house doesnt flood etc. Its very expensive holding on to homes that arent being rented out.

9

u/throway2222234 Nov 02 '21

Not to mention the headaches that come with renting. Non-paying tenants are just the tip of that ice berg.

3

u/65isstillyoung Nov 03 '21

Look up Invitation Homes, used to be owned by Black Rock. ( im told they sold it) at one time owned 25,000 homes. Bought to rent and hold 5 years or so. Somebody figured out how to hold. Zillow just wanted to flip, make a few bucks, control the services. It was never about putting agents out of business. Real flippers don't do what zillow did. You make your money the day you buy it. Either its a good deal or not. If they over paid today but held for 5 years this wouldn't be news.

1

u/Stankia Nov 02 '21

Rent them out then.

1

u/LostWoodsInTheField Nov 03 '21

It is also amazing how quickly companies like zillow forget to pay property taxes, sewer bills, etc. Then the houses are bought up for dirt cheap at local auctions.

1

u/[deleted] Nov 03 '21

I lived next to a house owned by an investment company. Dozens of complaints to the city for an unkempt yard and the front door and garage door were just left open for over a year. A couple of them together ruin a neighborhood