Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

Focus On Cash Flow! #multifamily #cashflow

2 Mar 2023 · 0 min

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In this brief instructional monologue, Christian Osgood advises beginner multifamily investors—especially those with little or no capital—on the paramount importance of cash flow. He stresses that newcomers must only purchase cash‑flow‑positive properties and avoid cash‑negative deals, as early losses can quickly deplete limited funds. Using a concrete scenario, he illustrates that a person with only $3,000 in cash who acquires a property that loses $1,000 per month would run out of money in just three months, underscoring the survival risk. Osgood also mentions that starting with a 12‑plex is a viable entry point, though not mandatory, and that more advanced strategies like value‑add become appropriate only after establishing cash‑flow‑positive holdings.

As a beginner with no money, I started with 12-plex. You don't have to start there, but you definitely can. How do we start going about that? Well, the first thing that you have to do, and the magic word is cash flow. You cannot afford to buy a cash negative deal. Now, when you get further, there's value-add plays and there's stuff that you can do. When you're starting, you cannot have your first deal lose money. If you have $3,000 to your name and your deal ends up losing $1,000 a month because you do bad math, I get to survive 3 months. Good luck, Cody. Not good.