Zillow flipping homes business model

[Account Closed]

As some of you may be aware, Zillow is now flipping homes in the Phoenix market. Here is a link to an article about the first house they've flipped in the Phoenix market. 

What are your thoughts about their business model? 

https://www.geekwire.com/2018/inside-look-zillows-...

[Mayer M.]

There is no way they are going to make any money doing this. The high volume low margin business in my opinion is not something Zillow should be getting in to.

I mean really? They bought a house for $410,000 and are trying to sell it for $425,000? What about carrying costs, closing costs, taxes, etc? What a joke!