Greg Simpson, the visionary behind TBREIA, the largest real estate investors association in the Tampa Bay area, and co-founder of Out Fast Realty & Investments, Tampa Bay’s #1 hybrid brokerage for agents and investors, is revolutionizing the real estate scene with his innovative use of accessory dwelling units (ADUs).
With local apartment rents soaring to $2,000/month, Greg saw an opportunity to provide more value. By listing his ADU at a discounted rate on the PadSplit marketplace, he transformed it into a highly sought-after one-bedroom, one-bath studio apartment at just $395/week. This unit was booked instantly and has remained occupied by the same tenant for 1.5 years.
Equipped with a bathroom, kitchen, and apartment-style washer and dryer, the ADU features top-quality materials and amenities, ensuring tenant satisfaction and reducing turnover.
“People bring me deals, and I tell them, well, it would be a good deal if it had an ADU!” Greg says. “ADUs are a huge value-add we’re always looking for. We love ADUs!”
From flipping to flourishing
Greg’s journey with PadSplit began with a stroke of inspiration. He transformed a uniquely laid-out 3,500 sq. ft. property into a thriving 12-bedroom, 4-bathroom home. With an average member tenure of six months, this house became a high-revenue gem compared to traditional rentals.
Originally, Greg purchased a house in Tampa, FL, with plans to flip it. However, when the market shifted, long-term rental prospects didn’t look promising. A meeting with Taylor, a PadSplit account executive, sparked a new direction. Greg realized that charging a set amount per week for each room could yield substantial returns, especially with his 450 sq. ft. ADU featuring a kitchen and multiple amenities.
A winning formula
Compared to his other PadSplit rooms, which rent for $215-$225/week, Greg’s ADUs command a premium. Another ADU he owns rents for $325/week and offers a private bathroom, kitchen, closet, TV, and shared laundry facilities. The simplicity of converting these spaces into PadSplits has been a game-changer.
“Converting the ADU into a PadSplit was very simple, easy, and made a lot of sense,” Greg says.
Building for the future: Expanding with confidence
Inspired by his success with ADUs, Greg is now developing a property in St. Petersburg, Florida, featuring a front house with seven bedrooms and a detached garage with a mother-in-law suite on top, potentially expanding to nine to ten bedrooms. The high level of privacy offered by ADUs, with their own bathrooms and kitchens, significantly boosts member satisfaction.
“Turn the ADU into a place you’d want to stay,” Greg advises. “Don’t skimp on the finishes or the furnishings. You get out what you put in.” His ADU kitchens boast granite and quartz countertops, stainless steel appliances, LVP flooring, and high-quality fixtures, ensuring tenants are happy and less likely to leave.
While setting up one ADU cost around $55,000 for a full renovation, including a new roof, plumbing, electrical work, kitchen, bathroom, & more, as well as all the furniture and furnishings, another was ready to rent after an easy $2,000 conversion.
PadSplit makes it easy to remain resilient in a shifting market
When the short-term rental market took a hit, Greg’s PadSplits thrived. Located in areas where the working class resides, his properties didn’t suffer from the same vacancies as traditional short-term rentals.
“If we had a lot of short-term rentals, we’d be in the same boat as a lot of people,” Greg notes. Instead, his PadSplits provide stable, affordable housing solutions, supporting the community and ensuring steady income.
A vision for affordable housing: Investors leading the way
Greg is a staunch advocate for PadSplit, recommending it to other investors. “PadSplit is a no-brainer; you have to do it! The affordable housing crisis is not going to be solved by the government – it’s going to be solved by us,” he asserts.
His properties not only generate income but also offer community members a chance to get back on their feet. He considers it to be a hand-up instead of a handout.
Expanding his portfolio with more PadSplits
One of Greg’s ADU tenants was recently able to secure her own place, while another PadSplit member saved enough to buy a house.
“That’s what this is all about,” Greg says with pride, “allowing our tenants to save money, get back on their feet, or have a place to stay during a transition – giving them decency without having to sleep on someone’s couch or the street.”
With seven properties and 55 rooms, Greg and his team are constantly on the lookout for more opportunities to expand his PadSplit portfolio.
Greg’s journey is a testament to the power of innovation, community-focused investment, and the remarkable potential of ADUs. His story offers a blueprint for success and meaningful impact for real estate investors looking to navigate the challenges of today’s market.
