For many aspiring real estate investors, getting started can feel overwhelming—especially with skyrocketing housing costs. But Army veteran Leon found a way to break into the market using a smart strategy: house hacking with PadSplit.
By purchasing a home and renting out individual rooms through PadSplit while living in one himself, Leon found a way to eliminate his own housing costs while building wealth through real estate—without needing a massive down payment. His strategic use of this rental model allowed him to start growing a portfolio even in a challenging market.
Want to replicate Leon’s success? Here’s an inside look at his proven strategy—and how property owners can put these same principles to work building their own real estate investments.
From dealing with rising rents to moving into real estate investment
Leon’s journey started with a common frustration: rent increases.
“In one year, my rent went up $226, and I was like, ‘Oh heck no, this is too much.’”
As a military veteran, he knew he had access to VA loan benefits, allowing him to purchase a home with zero money down. Initially, he looked into buying a quadplex or duplex, but inventory in Orlando was limited. That’s when a friend introduced him to PadSplit—a platform that allows homeowners to rent out rooms in shared housing, providing a lucrative path to house hacking.
“It seemed like I could still do the same thing—live somewhere and rent out the other spaces—but with a single-family home instead,” says Leon.
Armed with a new strategy, Leon set out to buy his first property.
Buying a home with an investor’s mindset
Unlike traditional homebuyers who search for their “dream home,” Leon approached his purchase with an investor mindset.
“I bought my first house with the idea that I was going to turn it into a PadSplit. I wanted a minimum of five bedrooms and enough space to convert a living room if needed. Bathrooms were also key.”
Despite initial concerns about converting and furnishing the property himself, Leon saw the bigger picture. He knew that while the upfront investment was high, it would pay off quickly.
Scaling up: From one home to multiple PadSplits
The success of Leon’s initial venture opened doors to rapid expansion. Leveraging his VA loan benefits once again, he acquired a second property—still without needing a down payment. His strategy was methodical: live in the first house for the required year, then transition to the second while converting his former residence into a full rental property. With this momentum, he’s positioned to acquire his third property this year.
“Once I move out, I can rent out my room and generate $1,000 to $1,200 in passive income per house.” Each property transition amplifies his rental income, creating a snowball effect that accelerates his portfolio growth while eliminating his own housing costs.
Looking ahead, Leon is on the path to building a network of four PadSplit properties, using his combined income to finally purchase his own permanent home where he can settle down.
The benefits of owner-occupied PadSplits
1. Living for free
By renting out rooms in the home he occupied, Leon offset his mortgage entirely.
“If I’m living in the property, I may only make about $200 in passive income, but my biggest win is that I get to live for free.“
2. Better management & tenant retention
Being on-site allowed Leon to create a welcoming environment for his tenants, which helped reduce turnover.
“I think being here makes people feel more comfortable. If they have issues, they know who to go to. It’s different from just calling a property manager you’ve never met.”
3. Higher earning potential
Leon maximized his earnings by focusing on five-bedroom homes with at least two bathrooms. He also prioritized creating private spaces, always taking the master bedroom with an attached bathroom for himself.
“Having private bathrooms is key—it lets me charge more per room and keeps everyone comfortable,” says Leon.
The cost of converting a home into a PadSplit
For those considering this strategy, Leon estimates the conversion costs to be around $6,000 to $7,000 per home.
Here’s a breakdown:
✔ Wall installation to create additional rooms: ~$3,000 per room
✔ Furnishing each room: ~$600 per room
✔ Additional amenities for tenants (mirrors, storage, etc.)
The financial impact was immediate—within just months, the rental income fully covered all property expenses, making each investment self-sustaining.
Leon’s advice for future house hackers
✅ Look for homes with at least five bedrooms (or space to create them)
✅ Prioritize multiple bathrooms to increase rent potential
✅ If living on-site, get the master bedroom with a private bathroom for comfort
✅ Think long-term: short-term sacrifice for long-term gains
“Life is all about being uncomfortable. But in real estate, a few years of discomfort can create financial freedom for a lifetime,” says Leon.
Leon continues to scale his portfolio
Leon plans to continue acquiring one property per year, taking advantage of low down payments for owner-occupied homes. Eventually, he hopes to transition into real estate education, helping others house hack through YouTube content and courses.
“There are so many people who don’t know about PadSplit. I see a big need for content around it, so I’m planning to create videos and share my journey,” says Leon.
As Leon continues to expand his portfolio, his investments serve dual purposes: building long-term wealth while providing more affordable housing options in his community.
Is house hacking with PadSplit right for you?
Leon’s journey demonstrates how creative approaches to property investment can work even without substantial upfront capital. His experience with shared housing shows how homeowners can build equity while keeping their own living costs low and providing affordable housing options. By starting small and living in the property, he found a sustainable path to real estate investing that worked within his means.
Want to explore house hacking with PadSplit? Learn more here.
