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Cash Flow Neutral

A property is cashflow neutral if the figure left after all the property related expenses (i.e. Rates, Interest payments, Principal payments, Repairs and Maintenance, Property Manager fees, Insurance) have been subtracted from total rent (in some cases + tax rebate) is zero (See Cashflow).

The main advantage of a cashflow neutral property is that it costs you no money to hold, allowing you to get the capital gains at "no cost" (there is typically at least an opportunity cost)

While some properties are cashflow neutral at purchase, they can also be made. A variety of strategies can be used to make a property cashflow neutral. These include the mundane option of paying down the mortgage until the income is the same as the expenses. Some people generate income to do this via property trading or by doing assignments but also other strategies such as Renovation, Adding a third bedroom, Multi Tenancy Dwellings can be employed to bring this about.