Negative Cashflow Flag

Critical flag: the property loses money every month after stabilization.

Definition

This flag fires when monthly cashflow is negative — the property costs you money to hold. This can be acceptable if the equity position is strong and you have other income to cover the shortfall, but it must be a conscious decision.

Formula

Triggered when: Monthly Cashflow < $0

How Kaison Uses This

Critical severity — forces NO_GO gate unless you override with a strategy note.

Example

−$161/mo cashflow → NEGATIVE_CASHFLOW flag → NO_GO

Pro Tip

If cashflow is negative but equity is $40k+, consider it a forced savings plan — not a bad deal.

Related Terms

Monthly Cash Flow

What you actually keep after all expenses and debt service.

Cashflow Score Component

0-25 points based on how well monthly cashflow clears your minimum threshold.

Educational content only. Consult a CPA or attorney for advice specific to your situation.