Growing Cash Flow and Reducing Payback Periods by 20+ Years with PadSplit


Growing Cash Flow and Reducing Payback Periods by 20+ Years with PadSplit

Daryl D. first discovered PadSplit in 2019 and hasn’t looked back since. Now, he has 12 homes listed on PadSplit and even participated in the company’s Series A fundraising as an investor. And with a cash flow that reduces payback times on properties by more than 20 years, Daryl says working with PadSplit should be a no-brainer for property managers.

Daryl first started investing in real estate in 2004 as a kind of “retirement plan.” He began by buying single-family properties with the goal of tenant rent covering the costs, but he soon found that self-storage properties offered a greater return on investment. In particular, Daryl notes key challenges around managing residential properties that limited his returns, including finding and replacing tenants and doing any repairs and clean-ups between tenants.

When Daryl learned about PadSplit in 2019, everything changed. He shares: “PadSplit led a presentation at one of my advanced real estate investors meetings in January, and the concept resonated with me from the beginning. When I learned even more about working with PadSplit, I realized it could significantly increase the gains on my single-family residential properties to make them just as good as the self storage facilities.”

In particular, Daryl says the potential to dramatically increase cash flow and make a positive impact on people’s lives at the same time cemented his decision to work with PadSplit.

In the nearly two years since Daryl began working with PadSplit, he notes that the company has continued to evolve everything from its onboarding process to how property managers and tenants engage one another. Along the way, he says the experience working with the PadSplit team has been a positive one, and the team has helped resolve any issues that have come up along the way. Daryl had such a positive experience that he jumped on the opportunity to invest in PadSplit during the company’s Series A fundraise in August 2020.

Daryl says the primary reason he is such a big supporter of PadSplit is the cash flow. “The cash flow is the big win. I’ve more than doubled my net returns from the properties that are PadSplits, so it really helps to pay off the properties. It used to be a 30-year plan to pay off a property, but with PadSplit it’s a fraction of that – maybe five or six years.” Unlevered properties become cash cows that rival or even beat his self storage properties.

Given these results, it’s no surprise that Daryl already has 12 properties he manages with PadSplit and plans to continue growing his PadSplit portfolio. He’s also become a strong advocate for other property managers to begin working with PadSplit.

Daryl concludes: “I have encouraged many of my investor friends to become PadSplit hosts, particularly if they have a lot of properties because that lowers the risk when it comes to things like code enforcement. But I tell people they have to try it: It costs around $10,000 to convert a home into a PadSplit and you’ll make that back in about six months. So if you’re able to go a year, you’re way in the black, and if you’re able to go three years, you’re way further in the black.”

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