Three investors analyze a $2.6 million property with negative NOI in 2025 and only $20,000-$45,000 projected for 2026. The deal requires an extra $25,000 yearly just to break even, making it financially unsound.
Reported NOI on the 2025 goes negative.
That's a problem. Pre-debt operating income. Like it doesn't even support the debt. It can't even support itself. This is running in the negative.
This is why we run all the numbers. So based on 2026, it shows that it's going down. It shows that it's just not going to make money. Yeah, maybe a $20,000 to $45,000 NOI on a $2.6 million property.
Again, remember like when you were— when we were playing cash flow and it had the minus $100 cash flow or whatever. This is minus $25,000 a year. Do you have an extra $25,000 to throw into a money pit?
And over— personally, no.
This would be a bad deal. Like, there's nothing that they could sell it for to make it— like, to compensate for it. Literally, you having to, like, put an additional $25,000 a year just to keep it at break-even. Do you understand
