On Property Podcast
What Is Positive Cash Flow? (Lesson 4: Intro To Property Investing)
- Author: Vários
- Narrator: Vários
- Publisher: Podcast
- Duration: 0:03:50
- More information
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Synopsis
ARVE Error: Mode: lazyload not available (ARVE Pro not active?), switching to normal mode What is positive cash flow? It is an excess of income when compared to expenses generating a recurring profit which is known as cash flow. Alright. Now, we're into the good stuff. This is one of my favorite topics, "What is positive cash flow?" I absolutely love positive cash flow because of the flexibility it delivers to investors because it can help you become financially free. And so, let's help you out to begin to understand what exactly is positive cash flow. In its essence, positive cash flow is an excess of income when compared to expenses. So when you purchase a property and rent that property out, you're now generating income in the form of rent. However, owning a property also comes with a whole bunch of different expenses. So, you probably have interest rates on the mortgage that you use to mortgage the property. You've got things like council rates. You've got insurances. You've got to pay fo