Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

This is Exactly What I Would Say if I Was an Idiot

15 Jul 2026 · 1 min

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Two multifamily investors with hundreds of units explain why cash flow alone isn't enough. Without depreciation tax benefits and cash-out refinancing, Speaker A says he wouldn't invest at all. Speaker B, who owns 650+ units, calls cash flow the foundation that lets you "get paid to wait" through downturns while appreciation builds wealth.

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Buying multifamily real estate only for cash flow is a guaranteed way to go broke. I own hundreds of apartment units. Would it not be for depreciation and the ability to cash out refinance these buildings, I would not buy multifamily real estate. That's exactly what I would say if I was an idiot.
Businesses survive off of cash flow. You need cash coming into your business, and ideally you need something to actually live on if you're going to be in the rental business. Now, I have over 650 units, red states, blue states, big cities, small cities. Guess what they all have in common? They all cash flow. So if the market pulls back, I get paid to wait. And yes, the appreciation is amazing. I'll get rich off of appreciation. I already have. But the cash flow allows me to get there. The depreciation is awesome. It gives me write-offs against the income that I have coming in on my positive cash flow. If you're seeing the trend, get paid to wait. Don't do cash flow or appreciation. Do cash flow and appreciation.