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Posted almost 14 years ago

What is Cash Flow Investing

 You can think of cash flow investing the same way you think about dividends with stocks. At some interval, whether it is monthly, quarterly, semi-annually or annually, you will receive regular cash distributions from your investment. You are buying a portion, or all, of an asset that can be leased or otherwise used to generate income.


With real estate investing, cash flow is the result of proceeds from rent payments. Let’s take a multi-family apartment building as an example. Say the property has 50 units and each unit rents for $1,000 per month. If we assume an expense ratio of 40%, the net income per month on that property is $30,000. While it is always a good idea to keep some portion of that net income in reserves, (To Read More, visit the Realty Mogul blog) 



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