The net amount of money moving in and out of a property investment after all income is collected and all expenses are paid.
Positive cash flow means the property generates more income than it costs to operate; negative cash flow means expenses exceed income. For vacation homes used primarily by the owners, the focus is less on rental income and more on keeping operating costs predictable and manageable. Understanding cash flow helps owners budget accurately and avoid financial surprises.
GoForth, a luxury co-ownership company, keeps cash flow transparent and predictable for all four co-owning families. Operating expenses — property management, maintenance, insurance, taxes, and utilities — are split four ways, and owners receive clear quarterly statements. Because GoForth's model is built around personal use rather than rental income, the emphasis is on keeping costs low and predictable rather than maximizing revenue.