Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

This method COULD help you cash flow day one 💸💸

4 Mar 2026 · 1 min

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1:14

Christian Osgood explains the reverse AMM, a financing method where payments start below the loan's interest rate, letting investors cash flow immediately. In a 25-unit deal, he set payments at 3% instead of the demanded 5%, added extra principal to the balance, and turned negative cash flow into positive while the property value jumped from $2.5 million to $2.75 million.

Chapters

Getting deals to cash flow. This is part 3. If you've already tried the Hommel hack and they said no, and you've already tried the interest rate ladder where your interest goes from low to a little bit higher as you increase cash flow, they said no to all this, you can try the reverse AMM. This is not a starting point, but you can actually start with your payments lower than the interest rate. I've done this on a 25-unit deal, worked beautifully. It was worth $2.5 million. I bought it for $2 million. The problem is the rents were quite far below market by about half. They're $550 rents Market rate for that area was a little over $1,000 a month. I needed time to get it from A to B. They were set on 5% interest, which, while a great interest rate, was still negative cash flow. My payments the first 2 years were equivalent to about 3%. The extra principal tacked on to the loan. So now I owe like $2,050,000 on a deal that today appraises for $2.75 million. I'm okay adding it to the price, but it allowed me to cash flow the deal the whole time. I don't recommend the reverse AM as a first step, but if your other creative clauses didn't work, fantastic addition to a deal. This can help you get day one cash flow on a deal that has rental upside.