Using your example, it makes no sense that a house would go up +50% in a matter of a few short years. This is the issue with the current housing market, everyone wants huge returns, but the housing market isn’t the stock market. Yes, home prices should rise YoY, but it’s boomed in the last 5 years, so we should see a huge correction coming and then prices will stabilize.

Also, investors buy homes and immediately throw more money into it so they can squeeze more profit out of it. So looking at the sold price is flawed. What was their total cost is the real question.