Real Estate Word of the Day: Cash Flow
Cash flow refers to the net amount of cash being transferred into and out of a business. In simpler terms, it’s the money you make from your investments after all expenses are paid. Positive cash flow means you’re earning more than you’re spending, while negative cash flow indicates that expenses are outpacing income.
To calculate cash flow, you subtract the total expenses from the total income. Cash Flow = Total Income − Total Expenses
In real estate, cash flow is the difference between the income generated from a property and the expenses associated with owning and managing that property. This includes all the money you receive from your property, primarily rental income. If you own a multi-family building, this would be the rent paid by tenants. For commercial properties, this could include rent from businesses leasing space. There are also costs associated with maintaining and managing the property, including mortgage payments, property taxes, insurance, maintenance and repairs, property management fees, and utilities.
Looking to buy or sell your home on Staten Island? For all your real estate needs, look no further than Tom Crimmins Realty! Give us a call at (718) 370-3200, and we can provide you with professionally-trained agents who are flexible to all that you’re looking for!
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