Buy really expensive property and rent out for a loss?

[Errol M Tazbaz]

Ran an analysis on this one. They are losing $2500/mo assuming 80% LTV and CoC is -11.27%. Assuming 10% appreciation the 5-year annualized return is 31%, but they are speculating that the market will perform like that for next 5 years. Anyone know why people do this? This seems quite common in my area. I feel like I am missing something because I am only looking OOS due to terrible CoC and negative cash flow in Seattle.

https://www.biggerpockets.com/...

https://www.zillow.com/homedet...