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Cash flow Positive

A property is cashflow positive 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 a positive amount. (See Cashflow).

Cashflow positive properties are the mainstay of many property investment strategies. While some properties are cashflow positive at purchase, they can also be made. A variety of strategies can be used to make a property cashflow positive. These include the mundane option of paying down the mortgage until the income outweighs 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 used to bring this about.