Direct answer
What does Cash flow mean?
Money remaining or changing hands during a period after the receipts and payments included in the stated calculation.
Exam cue: Read the question's definition. Before-tax cash flow commonly subtracts debt service from NOI.
What does it look like in a question?
New York example
$100,000 NOI less $65,000 annual debt service leaves $35,000 before-tax cash flow.
Common exam trap
What should you not confuse it with?
Cash flow is not automatically profit, taxable income or NOI.
Related commercial and investment terms
Effective gross incomeIncome expected or received after vacancy and collection loss, plus other property income included in the analysis.Gross leaseA lease in which the landlord pays specified property operating expenses from the rent received.LeverageThe use of borrowed money to finance part of an investment.LiquidityThe ease and speed with which an asset can be converted to cash without a substantial loss in value.Net leaseA lease under which the tenant pays specified property expenses in addition to rent.Net operating incomeProperty income remaining after vacancy and operating expenses but before debt service and income taxes in the standard real estate formula.
Sources used1 reference with section locators
The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.
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A definition helps with recall. The subject guide shows how the rule interacts with documents, scenarios, calculations and practice questions.