With nearly two decades of experience in real estate since 2005, Ed has mastered a wide range of investment strategies in Charlotte, NC, including buy-and-hold properties, house flipping, and short-term Airbnb rentals. But when he ventured into the coliving space, even his extensive experience couldn’t overcome the hurdles.
The DIY coliving struggle: 18 months of lessons learned
After connecting with a trailblazer in the shared housing space, Ed felt inspired to bring the coliving model to his own properties. But despite his industry expertise and commitment, the reality was tougher than expected.
“We tried for 18 months, but the model just wasn’t working the way we hoped,” Ed recalls. “We had three properties lined up for coliving, but ultimately had to sell two of them because we couldn’t make the numbers work.”
What was going wrong?
Ed’s challenges weren’t limited to tenant management. The real obstacles were:
- Marketing vacancies effectively
- Streamlining resident onboarding
- Coordinating efficient turnovers
- Overcoming financing barriers
“Lenders just didn’t know how to underwrite this model,” he explains, making refinancing and scaling virtually impossible.
The PadSplit turning point: 10 days to full occupancy
Everything changed when Ed discovered PadSplit after learning about other hosts’ success in the Charlotte market. The results were immediate:
“It went from complete vacancy to completely full in 10 days,” Ed says. “We just can’t be positive enough about the experience.”
Even after encountering a minor issue with one early resident, Ed maintained his enthusiasm:
“That wasn’t a platform problem,” he clarified. “That’s just part of doing business with people.”
The numbers that changed everything
For Ed, one of the most compelling aspects of PadSplit is how it transforms the economics of higher-end properties:
“In Charlotte, homes over $350,000 usually don’t cash flow in the traditional rental market,” he explains. “But with PadSplit, we’re making $4,000 to $4,500 a month in rent, compared to $2,400 to $2,600 if we rented it as a whole.”
This dramatic increase in revenue allows Ed to:
- Invest in better-quality properties
- Build long-term appreciation, not just cash flow
- Reduce maintenance headaches with newer homes
- Focus on strategic growth rather than day-to-day repairs
Why investors often fail at DIY coliving
For investors considering the coliving model on their own, Ed offers a blunt reality check:
“What people don’t realize is that PadSplit isn’t just managing properties—it’s running a powerful marketing machine,” he explains. “They’re doing serious spend to attract members. If you think you can match that reach and fill your rooms without them, good luck.”
In his assessment, the 8% service fee delivers exceptional value:
“Let PadSplit do what they’re great at—bringing in members—so you can focus on being a good operator.”
Beyond ROI: The human impact of quality coliving
While the financial benefits were Ed’s initial motivation, he discovered something equally valuable: purpose.
“I had a guy tell me, ‘You’ve done me such a favor. I’m so thankful for this.’ That really stuck with me,” he shares. “I used to say I only wanted to do deals where everyone involved says thank you at the end. PadSplit helped me get back to that.“
Ed’s upcoming coliving expansion plans
With his initial success, Ed is now:
- Preparing his third property for PadSplit conversion
- Planning to transition to professional property management as he scales
- Watching PadSplit’s growing lender relationships with enthusiasm
“The platform gives legitimacy to the model, just like Airbnb did for short-term rentals. That’s the key to unlocking refinancing products and scaling this business model.”
The bottom line: PadSplit’s platform beat DIY
Ed’s advice for real estate investors considering coliving is straightforward: leverage PadSplit’s established platform rather than reinventing the wheel.
By combining your real estate expertise with PadSplit’s marketing power, resident screening, and operational systems, you can maximize both your occupancy rates and your positive community impact.
Ready to transform your investment strategy like Ed did? Learn more about becoming a PadSplit host today.
