Plain-English explanation
The portion that absorbs surprises before becoming negative.
Examples
- $400/mo cash flow on $200 DSCR = comfortable cushion.
Common mistakes
- Confusing cash cushion with reserves.
Related questions
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Cash Flow
Excess monthly cash flow above debt service and operating expenses.
Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice
The portion that absorbs surprises before becoming negative.