Believing the sales talk from a real estate company that "after you finish paying off your debts, the property will become an asset and you will be able to earn additional income," an individual investor borrowed a large amount of money to purchase an expensive newly-built condominium unit. The investment of the condominium that the investor purchased was in deficit from the beginning, as he had to repay the debt from the rent and also pay the management fee and repair reserve fund to the condominium management association.
Each time a tenant moved out, the subsequent rent fell and the deficit grew, making it difficult to bear the cost of repairing the building and restoring it to its original condition. Finally, the investor was forced to sell the property at a large loss because he was unable to meet his daily living expenses as he continued to cover the deficit of his real estate investment.