Glossary · DealProp

Cash flow

The actual money your rental properties produce after all operating costs, before debt service and depreciation.

Cash flow is the money a rental property produces in a given period — typically a month or a year — after every operating cost is paid but before debt service (mortgage payments) and before any non-cash items like depreciation.

If you rent a unit for $2,000 a month and it cost $300 in repairs, property tax, insurance, and management that month, your operating cash flow for that unit that month is $1,700. After your $1,200 mortgage payment, your cash flow to your pocket is $500.

Why it matters

Cash flow is the number that tells you whether a property is paying you or whether you are paying the property. It is not the same as profit on paper — depreciation, paper losses, and tax timing all distort the accounting picture. Cash flow tells you the truth.

Two properties with identical rent rolls can have wildly different cash flows. A property with deferred maintenance and a vacancy this quarter is hemorrhaging cash, even if the lease reads $3,000 a month.

In DealProp

DealProp shows live cash flow per property on your dashboard. Rent posts on collection. Vendor invoices post as expenses the moment they are approved. The cash-flow number on the screen is what your bank account shows, not a projection.

Related

Net operating income Rent roll Books & reports