Of course, those kind of returns are anomalies and not something you should aim for realistically but it's just interesting to know how investors of the calibre got there.

Buying lots and constructing houses on them would generally be ordinary income subject to SE taxes and not capital gains.Capital gains treatment would be the anomaly and exception.

It should have been one of the anomalies ($110-120) in the chart below but, instead, was much lower. 

or like in Indy in the Hot neighborhood that is regentrifying like  Fountain square I have 11 projects new builds going there.. its an anomaly you can by beat up old houses for under a 100k and rent them for 900.. or you can do a pop top and sell them for 350k or like me I bought a bunch of infill lots for 30 to 40k and build new 2000 sq to 2200 sq ft and sell in the 350 to 400k range.. and your right for those which have top end finishs as nice if not nicer than we do in the ORegon market 100 bucks a foot about. but you go out into other VAST areas of indy and there is no hope of building infill and the houses are so dominated by rentals that the values are priced by backing into rent  numbers  and this is true in Memphis as well. you simply cant have 50% or more of your SFRs be rentals and have a upside on the housing stock unless its like I said above it catch's a wave.. 

If it doesn’t reflect any vacancy, then you still need to use a suitable figure for your estimates. 24 months is not long enough to be anything but a statistical anomaly.

I do BRRRR and while it MIGHT be possible in Vegas, though I don't think so. regardless, it's FAR better to do it elsewhere. as Terry said, you need to be able to buy distressed and under value, this would be an anomaly in vegas currently as the market is saturated with people trying mercilessly to find deals, and it squeezes the margins TIGHT.Rents are also far below what they should be to make Las Vegas profitable.

BP is showing anomalies in their posts because that's what people want to see.

Sure, there are anomalies which you should recognize, but list price means nothing to ARVs.

I guess I'm an anomaly.

With inflation you have normal inflation economic cycles but than anomalies like coronavirus.