A positive cash flow property is a real estate investment that generates more income than expenses, resulting in a net positive cash flow. In other words, the rental income from the property exceeds the monthly mortgage payments, property taxes, insurance, maintenance expenses, and other costs associated with owning the property.
Positive cash flow properties are generally considered a desirable investment because they provide regular income for the investor while also building equity in the property over time. This can help investors build long-term wealth and financial security.
Investors typically look for properties with high rental yields and low operating costs to identify a positive cash flow property. You may also consider location, property type, and potential for future appreciation. It’s essential to conduct thorough due diligence before making any investment decisions, including analyzing the property’s financials, conducting a property inspection, and reviewing the rental history and vacancy rates.