What is Cash Flow in Property Management?

In the world of property management and real estate investing, cash flow is a crucial indicator of financial health. It refers to the net amount of cash being transferred into and out of a property.

Understanding cash flow is essential for maintaining a profitable rental property. It measures the income generated and the expenses incurred over a given period.

Cash flow impacts the sustainability and success of real estate investments. Positive cash flow indicates that a property is generating more income than expenses, which supports ongoing operations and potential growth.

Conversely, negative cash flow can pose challenges, requiring careful management and adjustments.