Property Management
What is 'cash flow analysis' in Delaware real estate investment property management?
AThe analysis of a property's historical sales prices
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
Explanation
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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