Tommy DobczykOpportunity Zone Advisor, OZ Wizard · Director of Development | Certified Opportunity Zone Advisor

THIS Investment Deal is a TOTAL MONEY PIT! #shorts

29 Jul 2026 · 1 min

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0:54

In this short discussion, three speakers evaluate a real estate investment property priced at $2.6 million. They note that the reported Net Operating Income (NOI) for 2025 is negative, meaning the property cannot even cover its operating expenses, let alone debt service. Projections for 2026 show a modest NOI of only $20,000–$45,000, which is far insufficient to support the debt on a $2.6 M asset. The speakers calculate that the investor would need to inject roughly $25,000 per year out‑of‑pocket to keep the property afloat. Based on these financial indicators, they label the deal a “money pit” and advise against proceeding.

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