As used in the Income Approach -- The net result of an income producing property which has higher expenditures, taxes, insurance, maintenance and debt service than income from all sources. Appraisers apply this information when preparing an operating income statement.
A situation where revenues are less than expenses.... more
A pattern in which cash receipts (income) are less than cash expenditures (expenses). Continual negative cash flow usually leads to the failure of the business
Situation in which a business spends more cash than it receives through earnings or other transactions in an accounting period.
When cash expenditures to maintain an investment exceed the cash income derived there from.
Properties that cost you money instead of making you monthly income.
The situation in which expenditures required to maintain an investment exceed income received on the investment.... read full article
With rental property, this situation occurs when rental income is not enough to cover operating expenses and debt (mortgage) servicing. With residential properties f an applicant has negative rental cash flow from any property owned, that rent loss must be listed as a long-term loss and included in the applicant's debt-to-income (DTI) ratio. For more information, see the "Real Estate Investment Analysis Tools" article in the "Real Estate Investing" section.
A situation in which expenditures required to maintain an investment exceed income received on the property.
Situation in which a property owner must make an outlay of funds to operate a property.
A situation where income is less than expenses. Prolonged negative cash flow can lead to the failure of a business.
Within an accounting period, a condition in which a business spends more cash than it receives through earnings.
The investment situation where cash expenditures to maintain an investment (taxes, mortgage payments, maintenance, etc.) exceed the cash income received from the investment.
When operating expenses exceed income and an owner must make a financial contribution.
The situation whereby cash coming in to a business (revenue) is less than cash going out (expenses) during a specific measured time period.
