How does depreciation affect cashflow?

[Mike McCarthy]

I'm doing an analysis of one of my rental (BRRRR) properties. According to my QuickBooks, I'm doing ok. $480/mo cash flow. Plus another $250/mo mortgage pay-down. Feeling pretty good about myself.

But then I looked at the Income and Expense form my accountant filed with my 2019 taxes (Form 8825) and it includes $13K in depreciation.  So according to that, I'm -$8K for the year on this property.

How should I be looking at this? Happy that I have $480/mo in my pocket? Or every year I'm losing $8K because the property is degrading over time? My cash flow numbers above don't include Capex withholding, only minor repairs as needed.