What is Cash Flow?
Cash flow is the money left over each month from a rental property after collecting rent and paying all expenses — mortgage, taxes, insurance, maintenance, and management. Positive cash flow means the property earns more than it costs to hold. It is a core metric for buy-and-hold investors.
Example: A rental brings in $3,000 a month and costs $2,500 in expenses and mortgage, producing $500 of positive monthly cash flow.