Felipe Ernst

Managing Partner at Capitol Rock

[Felipe Ernst @capitolrockdc]

We don't offer a preferred return to our investors. On purpose.
"Pref" sounds like a guarantee. It isn't — it's a marketing tactic.
We'd rather buy deals that actually cash flow 7-8% than dress up weak deals with fake safety.

[Felipe Ernst @capitolrockdc]

This is the same discipline I apply outside the classroom, on every acquisition we underwrite in the DMV. It's not the exciting part of the job. It's the part that keeps you in business long enough to get to the exciting part.

[Felipe Ernst @capitolrockdc]

The question my Georgetown students ask most: "How do I know if a deal is good?
My answer is always the same: if it only works in the optimistic scenario, it's not a deal. 🧵

[Felipe Ernst @capitolrockdc]

The optimistic case isn't where you decide to invest. It's just upside you get to be pleasantly surprised by later.

[Felipe Ernst @capitolrockdc]

New acquisition in Washington D.C. 🏢
Another step in our disciplined growth strategy across the DMV multifamily market. Deal details here 👇
https://t.co/xxBhqCbYUq

[Felipe Ernst @capitolrockdc]

80% of DC's multifamily inventory is 40+ years old.
That's not a problem — that's the biggest value-add opportunity in the market.

[Felipe Ernst @capitolrockdc]

@RmkReal Exactly the trade-off we model before verticalizing any function. In our experience the breakeven tends to sit around 150-200 units within a single submarket — below that, fixed labor cost doesn't dilute enough. Where have you seen it land?

[Felipe Ernst @capitolrockdc]

Most multifamily investors scale by adding properties. The ones who actually scale add control.
Wrote about why vertical integration is the real edge in high-barrier markets like the DMV 👇

https://t.co/HuYMJyRS1f

[Felipe Ernst @capitolrockdc]

Happy to answer questions about the process below.

[Felipe Ernst @capitolrockdc]

Every week I see deals that "look good" on paper and aren't. Here's how we actually evaluate a 40-unit building before we make an offer. Thread 🧵

[Felipe Ernst @capitolrockdc]

This is exactly what I teach in my Georgetown multifamily investing class. Discipline in the analysis — not luck — is what separates an operator who lasts from one who gets burned in the first hard cycle.