CalculateRealEstateROI

Cash Flow

What does 'cash flow' actually mean?

Cash flow = rent − all expenses including PITI, maintenance, capex, vacancy, and management.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Cash flow = rent − all expenses including PITI, maintenance, capex, vacancy, and management.

Expanded explanation

Real cash flow includes reserves for maintenance and capex, not just paying the mortgage. Investors who ignore reserves report 'cash flow' that disappears the first roof or HVAC event.

Examples

  • $1,500 rent − $1,000 PITI − $200 reserves − $150 PM = $150 cash flow.

More Cash Flow questions