What investors mean when they say… CASH FLOW?
This one is pretty simple. Cash flow is what's left after the property's bills are paid.
Let's say your rental brings in $3,000 a month.
Your mortgage, taxes, insurance, management and other expenses total $2,400.
That leaves you with $600 in cash flow. That's the money you're looking at as your monthly cash flow.
But here's the important part:
Don't just ask:
"How much rent does it collect?"
Ask:
"How much money is actually left?" 𝗧𝗵𝗮𝘁'𝘀 𝘁𝗵𝗲 𝗻𝘂𝗺𝗯𝗲𝗿 𝘁𝗵𝗮𝘁 𝗺𝗮𝘁𝘁𝗲𝗿𝘀.
Learn the language. Understand the numbers. Make better real estate decisions.