What is cash flow in the context of an investment?

Cash flow, in the context of an investment, specifically refers to the total income generated from that investment after all necessary expenditures have been deducted. This net figure is crucial for investors to assess the profitability and financial viability of their investments. Positive cash flow indicates that an investment is generating more income than its costs, which is vital for sustaining operations and planning for future growth. Understanding cash flow helps investors make informed decisions about where to allocate resources and how to improve their investment strategies.

The other choices involve different financial concepts that do not accurately define cash flow. Total expenses incurred from managing a property focuses on costs, while the sum of money available for real estate purchases refers to capital without context of income versus expenses. Total sales revenue from property sales represents income from selling properties, not ongoing income generated from an investment. Thus, the correct answer captures the essence of cash flow effectively.