EP 95: The Co-Living Play: How PadSplit Turns a 3-Bed Into $14K/Month

In this episode, I sit down with Tony Amigleo, US Market Advisor at PadSplit and a real estate investor of more than 10 years, to talk about co-living, the rent-by-the-room model, and why it's becoming one of the highest-yielding strategies for single family and ADU owners.We dive into the realities of operating a co-living property, including room conversions, screening and collections, occupancy rates, management fees, member retention, and how the model compares to short-term and midterm rentals in today's regulatory climate.Tony shares firsthand insight from his path through lending, short-term rental operations in Austin, and now advising investors across Orange County and San Diego, including why the STR market contracted, what property types actually convert well, and how ADUs fit into the rent-by-the-room strategy.We dive into:What PadSplit actually is and how the two-sided marketplace worksWhy short-term rentals contracted — regulation, saturation, and slower travelThe conversion math behind turning a 3/2 or 4/2 into six or seven private roomsMinimum square footage, egress, and building rooms to codeReal room rates in Austin, LA, and San Diego, and how pricing is setWhat the 8% management fee actually coversScreening, collection rates, and how problem members get handledWho the 14 million single-resident occupants really areAverage tenure, occupancy rates, and what drives retentionWhy ADUs and co-living work so well togetherThe costs owners still carry — utilities, furnishing, and conversionThis conversation goes beyond just cash flow — it's a deep dive into affordable housing, the workforce that can't afford to live where it works, and how investors can solve for both returns and real housing need at the same time.If you're interested in co-living, ADUs, rent-by-the-room strategy, midterm rentals, or repositioning a property that no longer pencils out, this episode is packed with valuable insight.@stephsellsADUs adugginvestments.org padsplit.com