Go With the "Positive Cash" Flow

 

The main reason people venture into the business of real estate is to make money and secure their financial freedom. Just as with any other business venture, a positive cash flow is the single most important component that will either make it a success or a allow it to become a failure. Real estate is one of the quickest ways to make a pretty substantial profit in a relatively short amount of time.

Positive cash flow really needs no clarification as to what it is...basically, it is the money left in your pocket or your bank account at the end of the day. One way to look at managing and maintaining a positive cash flow is by applying principles similar to those required in managing your bank accounts.

The positive cash flow that can be expected is calculated by adding up all of the funds that are received from the property, such as rent or profits made from sales, and then subtracting any funds that have been accrued as a result of the initial purchase, maintenance, and repairs to be made to the property, within a given period of time.