In the state of Texas, a multifamily property has 5 or more residential dwellings. This is why duplexes and quads are legally closer to single family homes, and not considered multifamily. Essentially, we are talking about apartment complexes, like the kind you drive by every day. They can be small complexes with only a handful of units, or could go up into the hundreds of units, sometimes with in-house leasing and management offices, pools, gyms, clubhouses, etc. The newer complexes are usually owned by large institutional investors such as insurance companies and hedge funds, but the vast majority are actually owned by smaller, retail investors through pooled investment securities called syndications.

Cash Flow

Apartment complexes are actually fully functioning business, generating revenue every month, and may even be cash flow positive - earning profits from day one. Depending on the investment, this cash flow may be distributed back to investors as passive income - monthly or quarterly, in the form of dividends.


Like almost all real estate, over time the property and the land it sits on can appreciate in value, especially if it is a growing urban market. Another great feature of multifamily is that the operator can force appreciation through renovation - adding value to the underlying asset through capital improvements such as updating appliances, getting a new roof, new flooring, or a fresh coat of paint.


People always need a place to live, and because it is a tangible asset, the business model will never be obsolete. This stable demand affords significant protection against market cycles, and makes this asset class a safe store of value.

Tax Benefits 

As an equity partner, depreciation on the structure is tax deductible, and capital gains can be deferred through a 1031 exchange (please consult your CPA for more details). 

  • The key performance indicator is the NOI, the Net Operating Income. The NOI is net revenue less all operating expenses. NOI can be managed by increasing revenue (ex. by raising rents to market values), and by reducing expenses.

  • You can earn truly passive income as a limited partner, since the general partners (also known as the sponsorship team) are actually operating the project: from finding the opportunity, to executing the business plan, to exit through sale of the property. 

  • The most typical structure for retail investors is direct investment through a syndication; where many investors purchase shares in one asset, managed by one operator. Another possible structure is indirect investment through a real estate equity fund, where many investors purchase shares in a fund that owns multiple assets, managed by multiple operators.

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The Ascent

San Antonio, TX

154 units

Built 1965

Acquired September 2020

Limited Partner


Vizcaya Apartments

San Antonio, TX

256 units

Built 1983

Acquired December 2020

Limited Partner

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North Portfolio of 3 assets

San Antonio, TX

599 Class units 

Built 1975 & 1983

Acquired January 2022

Limited Partner