It means the cash you can expect to put in your pocket on average after paying the mortgage (your HELOC in this case), taxes, insurance, maintenance, capital expenditures (expensive repairs like a new roof), management, and vacancy/non-payment.People who invest for appreciation may not care about cash flow. 

Ideally you are also reserving $ for capital expenditure, maintenance, common utilities, etc.

Don't rush into depreciating expenditures.

If you're purchasing at that price and expenditures with stable paying tenants it sure sounds nice, otherwise it can definitely be a headache concern without guaranteed rent subsidy.

BP defines Total Profit as property value minus net cash expenditures and sales costs. 

The idea is that you find yourself a 2-4 unit property, live in one of the units and let rents from the remaining units cover your expenses.Property expenses you would need to consider include P&I, Tax, Insurance, Heat, Electric, Water/Sewer, Trash, Maintenance/Repairs, Capital Expenditures and Vacancy. 

Your Money or Your Life looks at money from the opposite side of BP, reducing expenditures holistically.

I am just starting to develop a real estate portfolio and I would appreciate your advice with reference to tracking business expenditures.  

Asking price: 215k Purchasing price: 205k Appraisal value:228k Gross monthly rent: $3,260.00 Financing: conventional loan 25% down payment Vacancy 10% / Repair and maintenance:10% / Property management 10% /Capital expenditure 3% Cash in Cash Return is 10% Keep the number conservative: even though we are currently managing the property ourselves and it’s fully rented.

It can be a significant expense in upstate New York winters -Landscaping including mowing and snow removal-capital expenditures - if you plan to buy and hold eventually you'll need to replace the roof, water heater, etc. best to put aside a little every month -property management - if you self manage this will just be part of your cash flow, but as you grow your business or if you hate managing you may need to outsource.