Cash Flow
The money left after subtracting operating expenses and mortgage debt service from a property's income.
Quick flashcard
What does Cash Flow mean on the Texas real estate exam?
Answer: The money left after subtracting operating expenses and mortgage debt service from a property's income.
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Cash Flow definition
Cash flow is the income an investment property actually puts in the owner's pocket after paying both operating expenses and the mortgage debt service. Positive cash flow means the property earns more than it costs to operate and finance.
Cash flow differs from net operating income, which subtracts operating expenses but stops before the mortgage payment.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Value & Appraisal (11 of 80 National)
From definition to recall
See this term inside a real exam question.
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