Real Estate InvestingHomebuying Glossary
Cash Flow
The money left over from rental income after paying all expenses, including the mortgage.
In plain English
Cash flow is what remains from rent collected each month after paying the mortgage, taxes, insurance, maintenance, and any other operating expenses — positive cash flow means the property generates more than it costs to run.
Why it matters
Positive cash flow is usually the first thing real estate investors look for, since it means the property can sustain itself financially, month to month.
Related terms
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