Cash Flow and Setting Aside Reserves

[Ryan Moore]

For buy-n-holds, if you take a portion of your collected monthly rent to place into reserve accounts for items like future vacancy, repairs, cap ex, etc., do you NOT include that money in your final earned cash flow number?  It's technically earmarked for a future expense, so I would assume it is not included?

My multifamily has a solid NOI as of late, but since I set aside such reserves, the cash flow figures aren't as awesome. Am I making the correct assumptions?