Property ManagementIntermediateDelaware Exam

What is 'cash flow analysis' in Delaware real estate investment property management?

ASimply a narrow analysis of only a property's historical sales prices over time, and nothing else, under standard practice
BThe measurement of actual cash generated or consumed by a property after all income and expenses (including debt service)Correct
CThe analysis of a broker's commission cash flow
DThe calculation of fair market rent for a property

Why The measurement of actual cash generated or consumed by a property after all income and expenses (including debt service) Is Correct

Answer B: The measurement of actual cash generated or consumed by a property after all income and expenses (including debt service)

Cash flow analysis measures a property's ability to generate actual cash: Cash Flow = Effective Gross Income − Operating Expenses − Debt Service. Positive cash flow means the property produces more income than it consumes.

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