alligator property

Definition

An investment property with carrying costs that exceed the rental income, effectively eating the owner alive month by month. Named because it takes bigger and bigger bites out of your bank account.

Example Usage

My alligator property in Florida is costing me $800 a month more than it generates—and yes, I appreciate the irony of the location.

Origin

Real estate investor slang from the 1970s-80s

Fun Fact

The term became especially popular during the 2008 housing crisis when millions of investors suddenly found themselves owning properties they couldn't sell or profitably rent.

Source: Real estate investment community slang

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