What does "cash flow" generally refer to in real estate?

In real estate, "cash flow" refers to the net cash generated from rental properties after deducting all necessary expenses. This encompasses not just the total rental income generated, but also accounts for operating costs such as maintenance, property management fees, insurance, property taxes, and any other expenses that may be incurred in the management of the property. The calculation of cash flow is crucial for investors, as it indicates the actual profitability of their investment, allowing them to assess sustainability and make informed decisions about future investments or management strategies. Understanding cash flow helps in evaluating whether a property is a good investment and can provide ongoing income to the owner.