None of these people have more than a five-year timeframe for their investment. The question is how much can they clear if they sell in 2026.
And they're not paying insurance. They likely can't get it. I know a couple who decided to buy their "dream vacation home" in the Santa Fe National Forest and one of the big complications is they couldn't get it insured. The reinsurance firms calculated there was a 100% chance the property would burn in the next ten years so no one would write a policy.
They bought it anyway, all-cash.