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Cash Flow Neutral

Cash flow can be positive, negative or neutral. It is positive when the inflow as income is higher than outflow and expenses. Negative cash flow refers to a situation when the income is lower than the expense and neutral cash flow refers to a state when the income matches expenses. In the property sphere, cash flow neutral implies that the rental income matches the expenses involved in holding a property. Since they are equal it means that the rent exactly covers the expenses including maintenance charges, loan installment, insurance, and other charges.

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