Cash Flow (Real Estate)

Cash flow is the money left over after all property expenses are paid.

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Cash Flow Formula

Cash Flow = Rental Income − Total Expenses

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Example

• Monthly income: €2,000
• Monthly expenses: €1,500

Cash Flow = €500

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What Counts as Expenses?

• Mortgage or rent
• Utilities
• Cleaning and maintenance
• Management fees
• Taxes and insurance

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Why Cash Flow Matters

Positive cash flow means:

• The property pays for itself
• You are generating profit monthly
• Lower financial risk

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Key Insight

Cash flow is one of the most important metrics for sustainable real estate investing.