Speaker B rented a farmhouse for $700/month, split it into bedrooms at $400 each, and made $2,000 monthly profit. Six-month leases kept turnover high. The strategy scaled to 26 units across multiple houses.
Are you in the deal room?
$2,000 a month while my rent check plus utilities was only about $900. An arbitrage, something that Blake might want to consider, is called co-living. I did it on my first deal where my brother lived in a 4— it was a 5-bedroom house with 4 baths. It was a very old, dilapidated farmhouse from 1974. So basically I got the house for $700 a month. I went and cleaned up the bedrooms, made them really nice, cleaned up the kitchen, made it really nice, and then put on there rooms for rent, $400 a room. I rented out each room for $400. I slept on the couch and basically made sure everything stayed running and stayed on. But I had 3 refrigerators in the house because my brother was a beer drinker, so he had to have 2 fridges for beer. And then we, uh, what I did was I converted the beer fridges into just regular food, food fridges. And so everybody had like their own section of fridge, plenty of room and all that. Literally made $2,000 a month while my rent check plus utilities was only about $900. So, and again, like, and then I limited it. Can't stay longer than 6 months. So, and I gave people, I says, you gotta rent by the month and you can only stay 6 months. So that eliminated anybody getting comfy and all that and, and, and kind of ruining a good deal that I had going. So, they came in, they stayed for a while, and then they were gone. I turned that into 26 units, what I started with as far or my brother's house, I could have been to 26 units, you know, basically just doors. There's 5 houses with almost 4 to 6 doors, 4 to 6 rooms per, or units per house, right? So that's the other way you can get into doing stuff.
I wrote down a lot of things about commercial, and also I know the co-living sounds very unique as well. One thing in my mind is I want to go talk to all the paddleboard rentals that are down in Newport. or it's kind of nearby by the beaches and just chat with them and then just see if there's any way I can kind of get it with them. Ultimately, it's just trying to find these little opportunities, knowing not every single one's gonna work out and that's fine. It's just kind of pushing through as well. So I think just expanding my horizon as well, ultimately.
