What is Cash Flow?

What is Cash Flow? ⁣⁣⁣⁣

⁣⁣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 calculate cash flow 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

Post a Comment