Definition: Cash remaining from an investment before income taxes. In a basic property-investment problem, it commonly equals net operating income minus annual debt service.
Example
NOI of $48,000 minus $30,000 annual debt service produces $18,000 before-tax cash flow under that simplified model.
Keep the distinction clear
Capital expenditures, reserve treatment, and other cash items may require additional adjustments. Before-tax cash flow is not the same as taxable income or NOI.
Related terms
Net Operating Income (NOI) · Annual Debt Service · Cash Flow
Keep studying
Income Approach: NOI, Cap Rate, Property Value, and Cash-on-Cash Return
References: FREC Course II syllabus: investment concepts
Pronunciation (US): bih-FOR TAKS KASH FLOH (capitals show stress)
Pronunciation reference: Merriam-Webster
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