Wikipedia defines cash flow analysis as "A method of evaluating an investment by estimating future cash flows and taking into consideration the time value of money.  Also called capitalization of income."

(click on this link http://www.extension.iastate.edu/agdm/wholefarm/html/c3-14.html for a detailed example of cash flow analysis.)

Before investing in real estate have you asked yourself any of the following questions?

-Does it cash flow?
-What is the monthly cash flow?
-What is my return?
-How will write off's affect my return?
-How much principal will I reduce?
-How much will my mortage cost?
-What is my cash on cash return?

Whether you are a new investor with zero properties or a multi-property owner, the information to make a good investment decision can be found in the cash flow analysis.