Cash Flow

In real estate investing, cash flow refers to the actual amount of money an investor receives from a property after all operating expenses and debt service have been deducted from the gross income. Operating expenses may include items such as maintenance, property management fees, taxes, insurance, and utilities, while debt service consists of principal and interest payments on any loans secured by the property. Positive cash flow indicates that the property generates more income than it costs to operate and finance, while negative cash flow means the investor must contribute additional funds to cover expenses. Cash flow is a key measure of an investment property’s financial performance and ongoing income potential.