Solving Affordable Housing Through Co-Living with Sam Wegert

Sam Wegert built a chain of martial arts schools for 15 years before pivoting full time into real estate. Today he and his wife own around 250 rooms in Charlotte and manage several hundred more, all under one strategy: co-living. Single-family home, single-family debt, multifamily income. The model is simple to describe and hard to operate. You buy a 2,500-square-foot 1990s house with a boxy floor plan and a non-HOA neighborhood. You convert every square inch that is not the kitchen or one common area into a bedroom or bathroom. The dining room becomes a bedroom. The garage becomes two more. A 10-bedroom house in Charlotte that would rent as a single-family at $2,200 a month rents by the room for $8,500 net of utilities. What landed in this conversation: Why the unit economics work right now. Sam is creating a price point that did not previously exist: a clean, professionally managed room that goes for 50 to 75 percent of the cheapest studio in the same submarket. The target tenant is the $15-to-$25-an-hour worker priced out of every other option. HUD now allows housing choice vouchers to be used for rooms, not just full apartments. That is a quiet but significant policy shift Sam reads as official cover for the asset class. What an actual co-living house looks like. Minimum 2,000 square feet, ideally 2,500 to 3,000. Built in the 1980s or 1990s so the floor plan is "boxy" with real walls between rooms (not open concept). B-minus to B-plus blue collar neighborhood, no HOA. Three-to-one bedroom-to-bathroom ratio at worst. Sam routinely picks up homes that have been sitting on market 100 to 150 days because no single-family buyer wants them. He gets them at a discount specifically because they are awkward for everyone except a co-living operator. The three rules of managing eight strangers in one house. Clean (cameras in common areas, professional cleaners twice a month, fines for dish-duty failures). Quiet (hard quiet hours, headphones after a set time because some tenants work first or second shift). Safe (FBI-level background checks, individual locks on every bedroom door, no weapons). Without those three guardrails locked in, the house empties out fast. Membership agreements instead of leases. Sam runs a master-lease structure: his ownership LLC leases the whole house to a separate management entity, which then signs individual "membership agreements" with each occupant. The technical answer to "how many leases do you have in your house" becomes "one." That structure gives him fast removal options outside the standard landlord-tenant process and helps in jurisdictions still enforcing old "no more than four unrelated people" zoning. Colorado, Oregon, and Washington have now banned that kind of local restriction outright. The best advice Sam carries: a mentor told him, "Lower your standard, but raise the consistency with which you hit your standard. Consistently good always outperforms occasionally great." That reframed how he runs his team. Books that shaped his pivots: Who Moved My Cheese by Spencer Johnson (Sam held his martial arts business five years too long), and Alex Hormozi's $100M Offers. Reach Sam at scaleyourrealestate.com (his five-day free co-living challenge runs monthly) or on Instagram @samwegert. Real Estate Underground with Ed Mathews. Find us wherever you get your podcasts, at clarkst.com/podcast or elevista.com/podcast Elevista - Speed as a Service™Elevista Connect is the first AI-powered lead conversion system built for real estate investors. 🎧 Subscribe to Real Estate Underground for weekly insights on building wealth through real estate, without sacrificing your sanity.Additional Resources:Clark St Capital -> Passive real estate investments for busy business owners and executivesElevista -> AI SaaS for real estate investorsClark St Academy on YouTube -> Learn how to invest in real estateSocial Media:LinkedIn -> Ed Mathews (President at Clark St and Elevista)Heads up: If you find this week's book intriguing and you buy using our link, we receive a small commission that helps support the show. Thank you!