Chris Innes has been a force in the real estate market since 2000, making significant strides as an investor. In 2018, he founded Dream America, a rent-to-own program aimed at helping individuals achieve homeownership. Yet, Chris always faced a critical question: what to do with houses that didn’t sell? His innovative solutions led him to explore various avenues, including renting out these properties to new clients.
The path to PadSplit
During the real estate boom, selling a house was a breeze. Homes would fly off the market in a day, often with lines of buyers. However, the market’s ebbs and flows led Chris to consider different strategies. When a client decided not to purchase a split-level home in College Park, Chris saw an opportunity. Initially listed for sale and then for rent, an agent mentioned PadSplit.
After some of his team members met with the PadSplit team to discuss converting the home, the concept clicked. The conversion prompted Chris to convert additional properties into coliving homes. He quickly realized that not every house was a perfect match for PadSplit, especially those far from public transportation. However, he successfully converted six homes into PadSplits, with four in Atlanta and one in Tampa being his most successful. Two new acquisitions are currently under development.
“Everybody I talked to is enthusiastic about what PadSplit is doing. There’s a great financial opportunity for owners and operators, but the people of PadSplit seem to care about affordable housing. The employees strike me as a group that cares about what’s being done.”
Remarkable success and financial growth
Chris’ PadSplit properties have seen impressive occupancy rates and financial returns. His PadSplit in College Park and Tampa were booked within a week. Another PadSplit in Jacksonville went live on April 19 and had five out of six rooms booked shortly after. His gross income reflected this success, rising from $5,400 in February to $11,000 in March, $19,000 in April, $25,672 in May, and even higher in June, all from five active properties.
One key to his success is the quality of his renovations. Chris doesn’t cut corners; he invests significantly in making the homes appealing. He hires professional photographers to capture high-quality listing photos, ensuring his homes stand out and get booked quickly.
Realistic expectations for new hosts
Chris offers a word of caution for new PadSplit operators: this isn’t a passive investment. “The first thing I ask is if they’re a landlord now – if they are, they have some idea what they’re getting into. We’ve bought over 200 rental properties, and they’re usually on auto-pay. That is not PadSplit. We hear from members every day. You need to be aware of that from the management standpoint; it’s not hands-off even if you get a property manager.”
Why PadSplit is a strong business
Chris believes in PadSplit’s strong business model, highlighting its mission-driven approach and profitability. “[PadSplit CEO] Atticus is focused on serving his mission while also building a profitable business. A lot of companies in the tech world never become profitable. They take investors’ money and burn through it. When I spoke to Atticus, it was clear he knows about real estate and is interested in growing a profitable business.”
Chris is now focused on expanding his PadSplit portfolio, aiming to find the right homes in the right neighborhoods at the right prices.
“PadSplit is dominating the coliving niche.”
For Chris, PadSplit stands out as an investment opportunity because it addresses affordable housing while offering the potential for strong returns. “PadSplit is dominating the coliving niche, creating a better return opportunity.”
Legal considerations
Chris advises understanding the legal aspects before diving into PadSplit investments. Zoning, permitting, and operating rules are crucial. “In Atlanta, I’ve learned that if you do 6-8 rooms, you can do that without many issues. Chopping a bigger home into numerous rooms might look good on paper but can bring headaches.”
Chris Innes’ success story with PadSplit is a testament to innovative thinking in real estate investment. By focusing on quality, understanding the market, and embracing PadSplit’s mission, he has turned challenges into opportunities, contributing to affordable housing solutions while achieving impressive financial returns.
