Real estate cash flow refers to the net amount of money generated by a real estate investment property over a specific period, typically monthly or annually.
It’s calculated by subtracting all the expenses associated with owning and operating the property (such as mortgage payments, property taxes, insurance, maintenance costs, and property management fees) from the rental income generated by the property.
Positive cash flow occurs when the rental income exceeds the expenses, while negative cash flow occurs when the expenses exceed the rental income.
