Jeff Weller

In the ever-evolving landscape of short-term rentals, adaptability is the key to success. Investors failing to jump ship and transition to mid-term rentals are quickly sinking.

Jeff Weller, a successful real estate investor, discovered this firsthand in his journey through the property market. Operating in various parts of Jacksonville, Florida, Jeff managed 17 Airbnb properties. In the last year, half of his Airbnbs began to lose their profitability.

In February, Jeff made a pivotal decision: he converted one of his properties into a PadSplit. Within the first week, four of the five bedrooms were booked. Over the subsequent months, he transitioned more of his Airbnb properties into PadSplits, aiming to streamline his rental business and ensure consistent income.

“From 2018 to 2019, you could list a standard house on Airbnb and expect bookings, but times have changed due to inflation. Travelers now seek luxurious amenities like pool homes or waterfront access. Ordinary properties don’t attract guests like before,” says Jeff.

Jeff converted another Airbnb to a PadSplit in September and had all eight rooms booked within seven days. Today, he has 45 PadSplit rooms and plans to convert seven additional Airbnb properties into PadSplits. Eight of his rooms are going live by mid-November; by the end of December, he’ll have 71 rooms. 

“If someone’s calling me about an Airbnb that they’re looking to buy, I’m always asking them the real reason they want an Airbnb. Usually, they want to make money. Unless you buy a high-end home and put it on Airbnb, which will set you back $600-800k, consider buying in the $200-300k range and get three PadSplits and make more money than you would with that Airbnb – it’ll be more reliable every single month,” says Jeff.

Immediate Earnings with PadSplit

Jeff’s strategic conversion to PadSplit bore fruit. He noticed that the more amenities he added, such as mini-fridges, TVs, desks, and mirrors, the longer his tenants stayed. Small touches that made a house feel like a home, coupled with the consistent income model of PadSplit, provided the stability he sought in the unpredictable world of rentals.

“With PadSplit, you don’t have to worry about the feast or famine cycle of Airbnb. Even with a few rooms empty, your bills are covered,” Jeff adds. “It’s not just about making money; it’s about creating sustainable housing options for people. PadSplit addresses a critical need in today’s housing market.”

Jeff also took his advocacy for PadSplit beyond his own ventures. He connected with lenders and property investors, sharing his success story and promoting the PadSplit model. “People are waking up to the fact that owning an Airbnb property isn’t the goldmine it used to be. PadSplit offers a reliable, steady income stream, which is invaluable in these uncertain times.”

A Nation of Renters

“The U.S. is becoming a nation of renters. In 2007, 70% of people were homeowners. We’ve never hit those numbers since. If you look at the price of buying a home now, the nationwide average was around $320,000 in 2020, and it’s now $428,000 in 2022,” says Jeff. “It’s gone up over $100,000, but wages have only increased by $4,000 to $5,000. The average person just can’t afford that.”

He acknowledges the housing market’s challenges, where soaring home prices and stagnant wages have made traditional homeownership a distant dream for many.

“That individual paying $1,600 each month for a two-bedroom apartment can go online and rent a single room at PadSplit and pay $800 each month and have all of their utilities included. That’s why I think PadSplit is definitely a solution to a major housing problem that we have today, and that’s why I’m so behind it,” says Jeff.

As Jeff’s journey from Airbnb to PadSplit continues, he envisions a future where PadSplit expands to more cities, providing affordable housing options and stable income for property owners. His support for PadSplit isn’t merely professional; it’s a testament to his belief in its power to transform how we approach housing and rentals.

Jeff Launches the First PadSplit Loan

As a successful PadSplit Host, Jeff’s company, Coast2Coast Mortgage, also launched the first PadSplit loan in June 2023 after having difficulty securing a loan with his first PadSplit after it had already been converted.

As both a lender and broker, he approached different lenders to partner with and noticed it wouldn’t work with their own in-house guidelines. Coast2Coast Mortgage partnered with a lender with experience in offering commercial-grade loans for shared housing. This lender’s familiarity with PadSplit, coupled with Jeff’s experience, resulted in them coming to an agreement to offer the nation’s first PadSplit loan.

The program has a slightly higher rate than a standard conventional or DSCR loan (Debt Service Coverage Ratio), but it accommodates Hosts who have already converted their properties and don’t want to tear their walls back down. 

Coast2Coast Mortgage also has an innovative real estate investor bank statement program tailored for both seasoned real estate investors and business proprietors. What sets it apart from traditional bank statement loans is its inclusive approach, considering all sources of income, including rental earnings, Airbnb proceeds, and even income from Padsplit arrangements. Additionally, the program factors in the income generated through house flipping.

Jeff sheds light on the program’s flexibility with an illustrative scenario: Imagine a business owner with a monthly business deposit of $100,000. Even if $90,000 accounts for business expenses, Coast2Coast Mortgage considers 50% of the total deposits, assuming the borrower is the sole proprietor. In this case, the monthly income would be $50,000. Subsequently, they deduct the borrower’s monthly debts, which might include $1,000 in car payments, a $3,000 mortgage, and $1,000 in credit card payments. With a debt ratio of $5,000/$50,000, the borrower maintains a favorable 10% debt ratio, making them eligible for the program.

Crucially, as long as the borrower maintains a debt ratio below 50%, they qualify for the program, even if the property is a fully operational Padsplit, provided they meet all the necessary criteria. Coast2Coast Mortgage has successfully facilitated transactions for properties with up to 12 rooms using this unique product.

“It is most ideal for any business with high monthly deposits or high gross rental income. All we need is the most recent 12 business bank statements, and we can do the income calculations to see if one is eligible. If you are a business owner, ask us if this program is fitting for you,” says Jeff.

Become a Host Today

If you want to learn how to become a PadSplit Host and increase your earnings, reach out today to speak to an account executive. Our team is available to answer your questions and begin the process of listing your first property.

To learn more about Jeff Weller’s services at Coast2Coast Mortgage, call 904-500-5626 or visit www.PadSplitloans.com. Join his PadSplit DSCR investor financing Facebook group at info.padsplitloans.com

Jeff Weller
NMLS: 385022