[quote=Ricechex]Monthly rent = $1200
Monthly mortgage = $1015 (impound acct. includes PITI)
Gardener = $50 month
Yearly maintenance varies, some years it has been up to $5000, other years $1000.
House needs new roof, new exterior paint, and likely the water heater is gonna go soon too.
It would sell for $160K, we owe $128K.
What is an alligator property?[/quote]
Alligator Property:
When the cost of mortgage, property taxes, insurance and maintenance on a rental property is greater than the income it brings in. (negative cash flow).
In other words it eats up all your profits (and then some).
