Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

Broke people invest in cheap houses

18 Jan 2025 · 1 min

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In this monologue, Christian Osgood argues that the common advice to purchase very cheap houses in low‑appreciation neighborhoods for Section 8 rentals is misguided. He explains that such properties often lack long‑term value and provide limited upside. Instead, Osgood advocates acquiring higher‑quality, income‑producing multifamily assets in strong, appreciating markets. He illustrates his point with a concrete example: a 25‑unit, $2 million seller‑financed building in Stephenville, Texas—a town he describes as having robust job and population growth, limited supply, and rising demand. The property generates substantial cash flow with no out‑of‑pocket cost, while also appreciating in value and offering quality housing to desirable tenants. Osgood emphasizes that this strategy delivers both cash and equity growth, and that anyone can replicate it by focusing on location quality and seller financing rather than chasing $20,000 “fix‑and‑flip” Section 8 deals.

Chapters

People get this idea that you need to buy these crappy houses in crappy areas, basically no appreciation areas, to rent to Section 8 and have the government pay your rent. This right here has a ton of Section 8, really clean campus, 25 units, purchased it seller financed, so it didn't cost anything out of pocket. This is in Stephenville, Texas. This is an excellent town, high appreciation area, lots of growth, job growth, population growth. Demand is going up, supply is about the same. You can buy buildings like this, $2 million, 25 units. This thing absolutely prints cash. Cash, which is fantastic. But more importantly, we invested in a great area that goes up in value where people actually want to live. We're providing a needed service, excellent housing for excellent people in a great area. This is so much better than that stupid buy a $20,000 house model. Buy a $2 million property, it costs me the same. Anyone could play the same game. Just do it this way.