Alligator Property

If we tell you "alligator property" is a real estate term, you might assume it refers to dodgy land opportunities in Florida, where swamp land never quite becomes viable tract housing despite the investment of your life's savings. Or just a place where alligator attacks are common.

In fact, it's a different grim financial situation.

An "alligator property" refers to a rental property which earns less rent than the place costs to maintain. When you own a rental property, you need to cover several types of cost. There's the mortgage on the place. There's taxes and insurance. And there's the general maintenance and upkeep. Theoretically, the amount you bring in for renting out the location more than covers the costs, leaving you a monthly profit. Otherwise what's the point?

If this doesn't happen, you've got an alligator property on your hands. And suddenly Florida swamp land doesn't look so bad. See Alligator Spread.