Cash Flow in 60 Seconds

Cash Flow in 60 Seconds

Cash flow is the difference between a property's income and expenses.⁣⁣⁣⁣ ⁣⁣⁣⁣

Cash flow is used in properties that produce income like an apartment complex, single-family rental or duplex. ⁣⁣⁣⁣ ⁣⁣⁣⁣

Cash flow is an important metric to understand if you are looking into an investment property. ⁣⁣⁣⁣ ⁣⁣⁣⁣

Here is how to figure it out in just a few steps;⁣⁣⁣⁣ ⁣⁣⁣⁣ 👉🏽Determine the gross income⁣⁣⁣⁣ ⁣⁣⁣⁣ 👉🏽Deduct all expenses (repairs, maintenance)⁣⁣⁣⁣ ⁣⁣⁣⁣ 👉🏽Subtract the debt service (mortgage)⁣⁣⁣⁣ ⁣⁣⁣⁣ ☀️The difference is the property’s cash flow. ⁣⁣⁣⁣ ⁣⁣⁣⁣ ⁣⁣⁣⁣

Questions about investment properties? Shoot me a DM or drop me a comment below.⁣⁣⁣⁣ ⁣⁣⁣⁣ ⁣⁣⁣⁣ ⁣⁣⁣⁣

#estateofgrace #investmentproperty #cashflow #rentalproperty #losangelesrealestate

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