Building a Long Term Durable Multifamily Portfolio with Rachael Jones

Building a Long-Term Durable Multifamily Portfolio with Rachael Jones

On Accredited Investors Only, host Peter Neill sits down with Rachael Jones, founder of Clover Capital Group, to unpack how an engineering mindset translates into smarter multifamily investing across the Carolinas. Rachael explains why durability and systems-first thinking beat chasing peak IRR, how to underwrite for the long haul, and what to look for in property management and construction execution.

From gas turbines to apartment buildings

Rachael’s path into real estate began as a pragmatic response to a volatile energy industry. Trained as a mechanical engineer and experienced in gas turbine design, she and her husband bought two single-family houses all cash as a hedge against job risk. Those early, hands-on renovations—learning wiring, tiling, plumbing, and tenant management—became the bedrock of a multifamily operator’s skillset.

That foundation led to purchasing a six-unit building and ultimately to syndications and larger multifamily acquisitions. Engineering taught Rachael structured risk management and project control—skills she applies to asset management, capex planning, and construction oversight.

Strategy: durability over speed

Rachael favors long-term holds—typically 10+ years—focused on resilient cash flow rather than quick turn profits. Her core thesis: build systems and physical assets to last so that maintenance—and the surprises that erode returns—are minimized over time.

“Durability beats speed—long-term cash flow matters more than peak IRR.”

That approach shifts the investment calculus. Instead of maximizing short-term IRR by heavily leveraging and flipping, the priority is to invest in robust systems and to front-load capex so the building performs reliably for years.

What the buy box looks like

Rachael searches locally across a roughly two-hour radius of Charlotte—Triad to Greenville and Columbia—favoring walkable, bikable locations with long-term demand. She avoids competing head-on with institutional buyers and focuses on properties with purchase prices in a range that supports attractive returns for private investors, often between $2 million and $30 million total purchase price.

Unit count matters less than total basis and achievable returns. In a tertiary market, a $23 million deal might be a far larger unit-wise than a similar-cost downtown quadplex, so the same dollar amount can look very different depending on location.

Front-loading CapEx: the long-term ROI

Instead of applying the cheapest short-term fixes, Rachael treats many renovations like lifelong engineering upgrades. The goal is to make components durable, so they do not require repeated fixes that cost time and money later.

Examples of front-loaded investments:

  • Installing water sub-meters and individual billing made it possible to capture utility costs that tenants undervalue.
  • Replacing cast-iron plumbing or aging roofs early when the building is acquired, if those systems are near end-of-life.
  • Upgrading HVAC systems and unit finishes to reduce tenant turn calls and long-term maintenance.

Thinking like an engineer, Rachael asks: how does this need to function reliably for the next 10 years? That mindset changes finish decisions from “cheap and fast” to “robust and predictable.”

CapEx reserves as a lifecycle schedule

Rather than applying a blanket percent-of-gross-income reserve number, Rachael models capex using lifespans similar to depreciation schedules. Roofs, HVACs, flooring, and other components each have expected service lives, and monthly reserves are set so capital is available when replacements are due.

This approach reduces the chance of surprise capital calls and keeps refinancing and hold strategies feasible. It also clarifies investor communications: raising funds for the day-one rehab, while reserves and future capital are planned and modeled in advance.

Conservative underwriting and local market knowledge

Conservative underwriting is central to Rachael’s process. That includes:

  • Leaning on experienced property managers to validate operating expense assumptions.
  • Accounting for the upcoming capital needs discovered during due diligence.
  • Preferring deals below institutional competition where a hands-on operator can add outsized value.

Growing up and investing locally gives a competitive edge. Familiarity with neighborhood demographics, nearby developments, and small-town dynamics helps identify opportunities that remote investors might miss, such as towns on the cusp of major job-producing projects.

Finding hidden value: small operational levers

Many value-add opportunities are operational rather than structural. Practical levers Rachael highlights include:

  • Adding washer/dryer hookups where market rents support a $50–$75 premium per unit.
  • Rebranding and repainting to reset property perception and listings on platforms like Apartments.com.
  • Creative community engagement, such as murals that function as economic signage and local marketing.

Property management: audit, don’t assume

Rachael uses a mix of in-house and third-party property management. Her non-negotiables when hiring a property manager are clear:

  • Direct access to the property management software and bookkeeping. Being able to log in to AppFolio and pull reports removes information asymmetry.
  • A single named point of contact per property with a documented backup to prevent issues from falling through the cracks.
  • Weekly check-ins and pre-meeting reports so conversations are productive and focused on exceptions, not basic reporting.

Bookkeeping quality is particularly important. Properly maintained books are essential for lender requirements, draws, investor reporting, and uncovering operational red flags.

Construction and project management in-house

Rachael prefers to keep mid- and large-scale construction management in-house, leveraging her engineering and project-management skills. For smaller turnover tasks, property managers adhere to established finish standards and budgets.

For large rehabs, she works with a construction coach and detailed schedules, managing draws and contractor coordination directly. The reality of project schedules is constant adjustment; the objective is to protect the project end date and quality while rebalancing intermediate tasks as conditions change.

Matching investors to the business plan

Not every investor wants the same thing. Rachael emphasizes aligning investor expectations with the underlying business plan:

  • Short-hold, high IRR investors are focused on speed of money.
  • Long-term investors care about durable cash flow, conservative underwriting, and refinancing strategies that extend hold periods.

Knowing your investor base allows tailoring deal structures and marketing: a property that benefits from heavy day-one capex and long holds will attract different investors than a quick-flip value-add.

Where she sees opportunity in the current market

New supply in many Sunbelt markets has pressured rents, but demand, migration, and a slowdown in new construction starts create windows to buy. Rachael looks for properties with sub-90% occupancy or management problems that scare off other buyers. With local operational competence, these assets can be purchased at a lower basis, renovated for longevity, and positioned to capture upside as absorption improves.

Key takeaways

  1. Durability over speed: Build systems and capex to last rather than chasing peak IRR through leverage and rapid flips.
  2. Front-load capex: Investing in robust systems upfront reduces long-term repair cycles and cost overruns.
  3. Local knowledge matters: Familiarity with neighborhoods, micro-developments, and workforce drivers uncovers asymmetric opportunities.
  4. Audit property managers: Require access to software and bookkeeping, and designate a single responsible contact per property.
  5. Model capex like a lifecycle: Use component lifespans to build reserves rather than applying blunt percentage rules.

Contact

For investors interested in learning more or connecting with Rachael Jones and Clover Capital Group:

  • Website: https://www.clovercapitalgroup.net
  • Email: rachael@clovercapitalgroup.net
  • Social: X at @CloverCap

The investor edge is often less about flashy deals and more about systems, people, and the discipline to build assets that materially reduce surprise. That is the playbook Rachael applies when she buys, renovates, and operates multifamily properties.