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Cash Flow

The net cash a rental property generates after all expenses including mortgage payments.

Definition

Cash flow is the actual money you take home from a rental property each month or year, calculated by subtracting all expenses (including mortgage payments, taxes, insurance, maintenance, and management) from rental income. Positive cash flow means the property pays for itself and puts money in your pocket; negative cash flow means you're subsidizing it.

Formula

Cash Flow = Rental Income − Operating Expenses − Mortgage Payments

Cash flow equals rental income minus operating expenses minus debt service.

Example

Your rental property collects $2,500 in monthly rent. Monthly expenses include $1,400 mortgage, $300 property taxes, $100 insurance, $200 maintenance reserve, and $200 property management. Monthly cash flow = $2,500 − $2,200 = $300, or $3,600 per year.

How Richify Helps With Cash Flow

Richify automatically calculates cash flow and other key real estate metrics for every property in your portfolio. Instead of plugging numbers into spreadsheets, you get instant analysis with built-in AI-powered insights to help you spot trends and opportunities across your holdings.

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