What does Sale Proceeds Cash Flow represent?

Sale Proceeds Cash Flow represents the profit gained after selling a property. This concept encompasses the total amount of money that an investor receives from the sale of a property, deducting any expenses related to the sale, including closing costs, commissions, and any existing mortgage balance. Essentially, it reflects the actual cash an investor takes away after all related expenses are accounted for.

Understanding Sale Proceeds Cash Flow is crucial for real estate investors since it directly affects their return on investment (ROI). This figure provides insight into how well an investment has performed over time and can guide future purchasing decisions.

By focusing on the profit gained after the sale, investors can better assess their financial outcomes and make informed decisions in future real estate investments.