Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

Real Estate Doesn't Cash Flow Anymore with Slum Properties

13 Jul 2026 · 1 min

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In this monologue, a real‑estate investor explains why buying and fully renovating higher‑quality 3‑bed/2‑bath units (new floors, walls, stainless‑steel appliances, garages) yields better cash flow than purchasing low‑quality “slummy” properties. He argues that the biggest expenses in real estate are capital‑expenditure and vacancy costs associated with sub‑par units; by offering a superior product, vacancy rates drop, rent premiums rise, and tenants are happier, leading to more stable income. He acknowledges online criticism of landlords but frames his approach as providing quality housing. He also references his own portfolio—25‑, 26‑, and 44‑unit holdings—situated next to a 76‑unit campus of similar condition, illustrating scale and competitive positioning.

Chapters

Real estate doesn't cash flow anymore if you buy slummy properties, which is why we buy things like this. 3-bed, 2-bath, new floors, new walls, stainless steel appliances, garage, the whole nine yards. And it's not just because I love our tenants, even though I do. It's because this makes a lot more money when you do it right. Your actual biggest expenses in real estate is the CapEx and renovation cost of slummy units and its vacancy. Vacancy will eat you alive if you have a nicer unit. At a lower cost than other people. You now have a better product. Because it is a free market, more people want to rent from you. You have happier tenants and they don't all hate you. Now, the internet will still hate me for being a landlord and making money, spending a bunch of money, uh, providing nice housing. But this is what we're actually renting. These are not crappy houses in the middle of nowhere. There's a 76-unit campus next to my 25-unit, my 26-unit, my 44-unit that are roughly the exact same condition.