Mendell Gosnell, CPMPrincipal Broker, Centurion Real Estate Services · Helping Real Estate Investors Build Generational Wealth Through Smart Property Management | Branch Offices in Salem, Corvallis, Eugene and Redmond.

The 80/20 Rule Every Willamette Valley Investor Should Know

27 Jul 2026 · 1 min

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Mendell Gosnell explains that cash flow is only 20% of a property's long-term value. The other 80% comes from tax benefits, appreciation, and mortgage paydown. Investors who chase cash flow alone risk missing millions in value.

Chapters

So cash flow isn't the whole story and why focusing on it alone costs investors millions. And some, some people would say that there's a little bit of a principle in long-term investing in real estate. That's the 80/20 principle, that 20% of the value long-term in the real estate is going to come from cash flow and 80% is going to come from the other 3 drivers, the tax benefits, the appreciation, the mortgage paydown.