The Mack Avenue property in Orlando demonstrates the financial advantages of converting a single-family rental into a PadSplit coliving space. This case study compares traditional rental performance against PadSplit’s model to illustrate enhanced profitability potential.
Initial Property Overview
- Property Type: 3-bedroom single-family home
- Purchase Price: $210,000
- Renovation Cost: $29,250
- Total Investment: $239,200
- Monthly Rental Income: $1,900
Annual Financial Analysis
- Gross Rental Income: $22,800
- Less Vacancy: ($1,900)
- Less Concessions: ($600)
- Effective Gross Income: $20,300
- Operating Expenses: ($8,700)
- Net Operating Income: $11,600
Performance
Annual Unlevered Return on Cost: 4.8%
PadSplit Conversion Performance
Investment Details
- Property Type: 5-bedroom PadSplit coliving rental
- Purchase Price: $210,000
- Renovation Cost: $45,000
- Total Investment: $255,000
- Weekly Rental Income (Weighted Average): $203
Annual Financial Analysis
- Gross Rental Income: $53,800
- Less Vacancy: ($7,600)
- Less Concessions: ($1,500)
- Effective Gross Income: $44,700
- Operating Expenses: ($16,300)
- Platform Fees: ($6,200)
- Net Operating Income: $22,200
Performance
Annual Unlevered Return on Cost: 8.7% (+3.9 percentage points vs. SFR)
Investment Impact Analysis
Financial Returns
- PadSplit doubles annual property owner profit ($22,200 vs. $11,600)
- Return on Cost improves by 1.9x (8.7% vs. 4.8%)
- Additional annual profit of $10,600 through room-by-room leasing
Strategic Benefits
- Optimizes bedroom utilization through a shared living model
- Addresses affordable housing needs while maximizing owner returns
- Higher-income potential despite increased operating costs
Conclusion
The Mack Avenue case demonstrates PadSplit’s superior financial model compared to traditional SFR. The conversion generates substantially higher returns while contributing to affordable housing solutions, making it an attractive investment strategy for property owners seeking improved asset performance.
