A positive cash flow results when:

A positive cash flow occurs when the income generated from an investment or property exceeds the total expenses associated with it. This means that after all operational costs, maintenance, taxes, and other expenditures have been deducted from the gross income (such as rental income), there is still a surplus. This surplus allows the owner to reinvest, save, or distribute cash, making positive cash flow a crucial indicator of the financial health of an investment.

In contrast, when rent collected equals operational costs, there is no cash leftover to consider positive cash flow; it merely breaks even. Additionally, an investment being fully paid off does not inherently result in positive cash flow unless it continues to generate income in excess of its expenses. Finally, only accounting for fixed expenses would ignore variable costs, which can lead to an incomplete picture of cash flow. Thus, a holistic view of all income and expenses is needed to ascertain that there is a positive cash flow.