721: $1k a Month with your First Co-Living Property

5 Feb 2026 · 48 min · 20 chapters

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In short

Podcast Episode Notes: The Side Hustle Show - Episode 721: $1k a Month with your First Co-Living Property

Host

Nick Loper

Guest

Sam Wegert

Episode Overview In this episode, Nick Loper interviews Sam Wegert, a seasoned entrepreneur in the real estate market, who discusses the burgeoning field of co-living properties. Sam provides insights into how to generate significant cash flow through co-living arrangements, the strategies involved, and the nuances of navigating legal and practical challenges in this sector.

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Key Concepts

  1. Understanding Co-Living
  2. Definition: Co-living involves renting out individual rooms in larger properties rather than leasing the entire house or apartment.
  3. Cash Flow Potential: Compared to traditional single-family rentals, co-living can yield 4-5 times the cash flow.
  4. Example: While a traditional rental might generate $250/month, a co-living arrangement could generate $1,000 to $2,000/month from the same property.
  1. The Journey of Sam Wegert
  2. Sam began his real estate journey 14 years ago through house hacking.
  3. He currently manages a portfolio of over 200 rooms passively while living overseas.
  4. His success led to the creation of the Scale Your Co-Living Real Estate podcast and the website ScaleYourRealEstate.com.
  1. Getting Started in Co-Living
  2. Initial Steps:
  3. Acquire a property using creative financing strategies with minimal capital.
  4. Focus on properties with sufficient square footage (e.g., look for homes of 1,500 square feet or larger with multiple bedrooms).
  5. Room Conversion Strategy:
  6. Convert large homes by adding walls and closets to maximize bedroom count.
  7. Each 250 square feet can typically accommodate an additional room.
  1. Creative Financing Techniques
  2. Utilize primary residence loans for initial purchases, allowing for low down payments (as low as 3%).
  3. Implement an invoice authorization strategy to roll construction costs into the purchase price, reducing immediate cash outflow.
  1. Identifying Ideal Locations
  2. Co-Living Friendly Areas: Look for neighborhoods with demand for affordable housing but not overly strict regulations on unrelated housemates.
  3. Avoid cities known for anti-co-living regulations (e.g., Nashville, Sarasota).
  1. Operational Considerations
  2. Tenant Screening: Implement rigorous screening processes, including background checks, to ensure a harmonious living environment.
  3. Managing Relations: Develop clear house rules and a robust system to handle disputes and maintain order among housemates.
  1. Marketing Strategies
  2. List available rooms on various platforms (e.g., Zillow, Craigslist, Facebook Marketplace).
  3. Furnish common areas to enhance appeal while allowing tenants to furnish their private rooms.
  1. Potential Challenges
  2. Conflicts among tenants can arise, necessitating effective conflict resolution strategies.
  3. Stay responsive to tenant concerns while keeping the property well-maintained.

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Key Takeaways

  • Co-living can significantly enhance profitability in real estate investments and address the urgent need for affordable housing.
  • The importance of thorough tenant screening and maintaining a clean, organized environment cannot be overstated.
  • The market for affordable housing is growing, and co-living presents a viable solution for many individuals and families facing housing insecurity.
  • Sam emphasizes the importance of choosing a niche, committing to it, and minimizing distractions from other potential ventures.

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Action Items

  • Interested individuals can join Sam's Free 5-Day Co-Living Challenge on his website to deepen their understanding and gain actionable insights on starting in co-living.
  • Evaluate local real estate markets for potential co-living opportunities while considering zoning laws and community acceptance.

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Episode Reference Links

  • [Scale Your Co-Living Real Estate Podcast](https://www.scaleyourrealestate.com)
  • [Join the Free Co-Living Challenge](https://www.scaleyourrealestate.com)

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Conclusion This episode offers practical advice and inspiration for aspiring real estate investors looking to explore co-living as a profitable side hustle. By leveraging the insights shared by Sam Wegert, listeners can better navigate the complexities and opportunities in co-living real estate.

Written by AI. May contain mistakes. Listen to the episode to check what was said.

Chapters

Tap a time to open that second in VO

Understanding the Co-Living Model

0:46 to 2:35

Exploration of the co-living property strategy and its income potential.

“three bedroom, one or two bath, nice working class neighborhood, long-term lease type of type of strategy here and aim for a cash flow of 250 bucks a month.”

Finding the Right Property

2:36 to 4:35

Criteria for selecting properties suitable for co-living setups.

“I'm thinking like fraternity house, sorority house, like nothing is built anymore with 14 bedrooms.”

Zoning and Legal Considerations

4:36 to 6:24

Discussion on zoning regulations and strategies to navigate them.

“ground up construction, which I'm doing right now, that is where you can pretty much build it exactly how you want it.”

Market Conditions for Co-Living

6:25 to 7:40

Analyzing which cities are best for starting co-living ventures.

“That is our way in the interim to have 12, 10, 11, in eight, nine, however many people live in a home and share that home.”

Financing Your Co-Living Property

7:41 to 10:35

Understanding the financial aspects of acquiring and converting properties.

“More like broadly geographically speaking, does it make sense to start wherever you are or are there certain cities, certain metro areas that are more conducive to this than others?”

Introduction to Co-Living Insights

14:00 to 14:15

Learn about key considerations in co-living property investment.

“Yeah, you're kind of wrapping it into whatever your loan is, whatever interest rate your loan is.”

Neighborhood and Property Selection for Co-Living

16:30 to 20:29

Identify key criteria for selecting neighborhoods and properties for co-living.

“And so if I'm firing up Redfin nearby, maybe not nearby because the housing is kind of crazy in this area, but I probably want to look for something without an HOA.”

Renting Strategies and Target Market

20:29 to 21:38

Understand how to determine rental pricing strategies and target tenants effectively.

“To underwrite it, you mean, just to kind of like understand what the numbers are going to be?”

Diverse Niches in Co-Living

21:38 to 23:38

Explore the various niches within the co-living market and their unique challenges.

“This is one of like our like mid-20s regrets or early 20s regrets.”

Marketing and Tenant Vetting for Co-Living Spaces

23:38 to 26:11

Learn effective marketing strategies and tenant vetting processes for co-living.

“One of my students recently just opened one for veterans only.”
Show all 20 chapters

Common Area Management in Co-Living

26:11 to 28:00

Understand the importance of managing common areas in co-living environments.

“And you just look for like 3x income to rent or, you know, any other must check this box and, you know, red flags to avoid.”

Setting Up Co-Living Spaces

28:00 to 30:20

Learn how to create a clean and organized environment in co-living properties.

“And we have a new refrigerator for every six people.”

The Social Dynamics of Co-Living

30:20 to 35:31

Explore the social dynamics and potential conflicts in co-living arrangements.

“Yeah, I'll give you a horror story if you really want a horror story.”

Managing Co-Living Properties Effectively

37:46 to 39:38

Gain insights into managing co-living properties and ensuring tenant compatibility.

“Let's circle back around in a year or two.”

Challenges and Stories from Co-Living

39:38 to 42:00

Hear real-life stories and challenges faced in co-living situations.

“You're like three months later, they're like, yeah, this is more work than we thought it would be.”

Horror Stories and Cash Flow Potential

42:00 to 43:10

Learn about real-life challenges in co-living and the financial benefits.

“I'm on the next meeting with them like a week later.”

The Importance of Transparency and Systems

43:10 to 44:14

Understand the value of transparency and establishing systems in co-living.

“on a podcast that I'm introducing people to.”

Mission Behind Co-Living: Addressing Homelessness

44:14 to 45:51

Discover the social mission of co-living in providing affordable housing.

“affordable housing units short in America.”

Focus and Commitment in Side Hustles

45:51 to 47:00

Learn the importance of commitment and focus in pursuing a side hustle.

“I'm serving a population that really, truly needs it.”

Navigating Real Estate Paths

47:46 to 48:39

Explore various real estate investment opportunities and strategies.

“And so if you want to get on the waiting list, it's scaleyourrealestate.com.”
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Transcript

Automatic transcript. May contain errors.

0:00My guest says this is the fastest and most impactful path to wealth in real estate. and he's breaking down how it works starting as a side hustle. The path in question is called co-living. This is getting a big house and renting out the rooms individually. So what started for him as a simple house hack in 2011 has grown to a portfolio of over 200 rooms passively managed and addressing affordable housing from the ground up. From Scale Your Co-Living Real Estate podcast and scaleyourrealestate.com. Sam Wieger, welcome to the Side Hustle Show. Nick, I'm so excited to be on the Side Hustle Show. Thanks for having me, brother.

0:38Yeah, I'm looking forward to kind of learning right alongside the listeners here because the traditional real estate investing advice that I've been given is your single family home, three bedroom, one or two bath, nice working class neighborhood, long-term lease type of type of strategy here and aim for a cash flow of 250 bucks a month. The co-living model aims to like four or five X that on a monthly basis. So you ultimately need fewer properties to meet your income goals. So what's, I mean, what's realistic here in terms of income? Paint us the picture in terms either from your own example or from some of your community students.

1:17When I grew up in real estate world, I remember Brandon Turner, some of these guys that were part of this bigger pockets community, which is a really big community in real estate, would say, hey, if you get$100 a month in cash flow per unit, that's good. That's what you're looking for. And I remember thinking like, holy cow, for me to do that, I have to get hundreds and hundreds and hundreds, if not thousands of units to actually create any income. With co-living, it really is not. And then, I mean, just as a side note, I was listening to a podcast with Brandon Turner recently because he has a billion dollars in real estate.

1:45I think it's over 10 ,000 units. And he said, my cash flow from a billion dollars in real estate is, and I quote, a couple thousand dollars a month. And I was like, that's too little, man. That's too little. Because we are here, obviously, people listening to your show, we want to create some cash flow. So, we won't even look at a co-living home unless it produces a thousand dollars a month in cash flow. I would say the average is closer to two grand and you'll see spikes. You're managing yourself. This could be even more because you're taking out what you would normally pay to the manager and keeping that for yourself.

2:12So, I had a student come to me recently and said, Sam, I have a 14 bedroom house that I self-manage that I put a large down payment. I think she put like 30 or 35 % down. So her loan was less. And she said, after all my expenses, my net cash flow is$5 ,000 a month. And I was like, one house? She's like, it's 14. It's 14 people share this home. It was this huge house. And I was like, so that's a spike. That's like the craziest I've seen. It might as well be an apartment building at that point. Yeah. I'm thinking like fraternity house, sorority house, like nothing is built anymore with 14 bedrooms.

2:42Not even, you know, it'd be rare to find a six bedroom. Like where are you finding this stuff or how do I start the shopping process. Yeah, we give people a formula. It goes like this. If you bring me a 1500 square foot house, somewhere in that 1500 square feet of that house is four bedrooms. You might as well say, well, Sam, it's actually only two. Well, by the time I get done with adding a wall here and a wall here and a closet here and a closet here, I'm going to have four just because I know that square footage for co-living, the biggest thing you need to look for in a home is square footage because you're looking for size.

3:12Size matters when it comes to co-living because you want to spread people out and everybody have their own private room. But we're converting a lot of these spaces. We're taking dining rooms and living rooms and basements. And so 1 ,500 equals four. And then every 250 square feet that that house gets bigger, that means I find an extra room in that house somewhere. So 1 ,500 is four. 1 ,750 square feet of a house is going to be five rooms somewhere in that house. And I just know this because I've looked at thousands and thousands of homes. 2 ,000 square foot home is going to be a six bedroom. So if you bring me a 3 ,000 square foot house, that's going to be 10 rooms.

3:44So it's really just the matter of the size and how you can convert and lay out the space that everybody has a common area where they can get together and there's a kitchen and there's a living room and they co-eat and co-work. Yeah. It's wild to come up with 10 rooms out of a 3 ,000 square foot house, but maybe it's feasible. For context, I grew up in a 1 ,900 square foot house and I'm one of eight siblings and two parents. So 1 ,900 square feet, 10 people. So for me, this is why it wasn't crazy for me because I was like, everybody's like, oh, that's crazy. You're packing people in there. I'm like, guys, you want to see packed.

4:14Check out my house that I grew up in. Like that was packed. Four pieces of a room. Parents slept in the basement, you know? Okay. So it's not like off the shelf. It's, this is, there's some customization required. Like, so finding something that fits the square footage requirements and then bringing in the contractors to add the walls, add the closets and make it into a co-living house. Yeah. The only thing that's off the shelf is if you do ground up construction, which I'm doing right now, that is where you can pretty much build it exactly how you want it. How many bedrooms? You can put in all these private baths, but that is a unique person that really wants to go through the year or two years of a process to get all that has to happen to get a ground up done.

4:51So yes, in every other case, it's customization. It's adding walls, it's adding closets, and sometimes even adding bathrooms. Do you run into like zoning requirement or like zoning regulation issues and be like, no, no, this wasn't zoned multifamily. This was supposed to be a single family neighborhood. Okay. So we went here, we're going here in the first 10 minutes of the podcast. Let's go. Normally, this is towards the end of the podcast, but that's a very common question. And it's a big topic, which is why I kind of sighed. It was like, okay, let's go here. So yes, a lot of cities have restrictions around the number of unrelated people in a home.

5:25In some cities, it's two, which is stupid because that means if you're not married to your girlfriend and you're living there, you cannot have anybody else in that home because they would be completely understeered. Captive too. Some of these rules, some of these restrictions were very outdated. The way that we get around these rules, it is a good faith legal argument for how we can still operate in these cities. And basically what we do is we create an agreement that is not a lease agreement. We form a club. Think of like a fraternity club or think of like a country club. I don't know if anybody ever remembers.

5:57I think this was a state by state rule. If you ever went into a place that didn't have an ABC license, but they wanted to serve you beer and wine, you would just buy a$1 membership at the door. And now you were a member of the club so they could serve you alcohol. It's like basically like a similar hack. It's you're a club and that club has hundreds and hundreds of members and that private club rents the house and the members get to use the house. And so it's a structure. And I help my students set all this up and do all this because that's how we do it. And it's how the biggest companies in co-living in America do it.

6:26That is our way in the interim to have 12, 10, 11, in eight, nine, however many people live in a home and share that home. The long-term strategy is that these rules, completely unconstitutional in my opinion. You're telling me that I can live in a home with 50 of my cousins, not against the law, but as soon as I have three unrelated, it's against the law. There's a whole, like, and there's a lot of lawsuits out there right now that some of the bigger companies are taking and fighting and appealing. And their whole goal is to show like, this is just discrimination at the highest level. Yeah. And with all of the drama surrounding housing affordability, like you can definitely see over the long run, this stuff gets fixed at the legal level.

7:09But in the near term, the workaround is to get your club, get your entity structure set up. And I'll add this one thing to it, I think is really important. Colorado, the state of Colorado, which I know you're out West just came and the governor basically just agreed with this whole philosophy. He was like, guys, if eight adults want to act like a family in a home, we shouldn't like that. So the governor of Colorado just made it illegal for any local jurisdiction to regulate the number of unrelated people in the home, making Colorado potentially the most friendly co-living state in the entire United States right now without any workarounds, which was pretty cool.

7:40Okay. More like broadly geographically speaking, does it make sense to start wherever you are or are there certain cities, certain metro areas that are more conducive to this than others? We look at two things and this is going to sound like I'm speaking out of both sides of my mouth because I just gave everybody the workaround. Now, we look at two things before we go into an area. One, what's the co-living friendly score of that area? It's like, wait, Sam, I thought you just had a workaround. We do. But even if I have a workaround, that's a good faith legal argument. Do you want to go into a battle with the city of Nashville?

8:12Because Nashville, for example, has come out and been like, we hate co-living. And if we ever find co-living homes, we're going to shut them down. I mean, Nashville is just like annoying like that. Sarasota, same way. Yeah. I mean, it would be the neighbors ratting you out when they see, why are there eight cars in front of this house. Yeah. Yeah. You've got to think through parking. A lot of times, neighbors will call the city on them if they don't have good systems for the trash cans and the grass, like simple things for running a good co-living home, but can be a little more complicated, right?

8:37If someone's a new landlord. Yeah. So that's the one thing we look at. The second thing we look at is what is the price? Like basically, can we cashflow in this area? If you go to San Francisco, you can do co-living, but you're not going to cashflow as much as if you're in Dallas or Charlotte or Tampa or Phoenix or even Jacksonville. So there are some cities that there's still solid demand for affordable housing, but the real estate is at a good, still affordable price. Now, you don't wanna go to a place that's too affordable. I had a student come to me the other day and they wanted to go to some small town in the middle of Nebraska.

9:07And I went and I looked up what a studio apartment costs in Nebraska. And the studio apartment was like$350,$400 in this little tiny town. I'm like, guys, co-living has no value here. Like even if you make$10 an hour, you can afford something on your own. So like, no one's gonna do this. So then there's a sweet spot. Okay, that's important. That's the primary competition, like where your tenants would alternatively go to lowest rent studio or, you know, a one bedroom, like that's kind of where they would be looking instead. Okay, so comparing that price with what potential rent could be. That's exactly right.

9:40You're looking for a city where a studio apartment plus utilities is out of reach for people who make between$15,$25 an hour after taxes. Because in every major city, there's tens of thousands, if not hundreds of thousands of people that are in that minimum, I'm calling that minimum wage. I know that's not actual minimum wage, but they work at airports, they work at Amazon warehouses, they work at Walmart distribution centers, they work at Target, they work at Starbucks, they work at all these places. And if a studio apartment is on average, say in Charlotte, it's$1 ,500 to$1 ,700 plus utilities, they'd be spending 80 % of their money on the studio apartment.

10:12So they have to look for other options. You're looking for those areas where there's a percentage of the population that make the minimum wage usually in a city that are outpriced. And that's where you want to be. Okay. You can make it work in higher cost of living areas, but just adjust the math accordingly or just the cashflow expectations accordingly. Okay. What is typical in terms of purchase price, startup costs, construction costs, all of a sudden there could be a barrier to get into the business? Yeah, for sure. The way I started this, I mean, and the way I recommend everybody start this, to be honest, is you can use.

10:44If you have a W-2 and you have some income, I got my first home with a primary residence loan, which was 3 % down. So it was 3 % at that point. I mean, the home was$150 ,000. So I think what's 3 % of all is, what is that? Five grand? You know, not a lot. So this is house hacking, right? So I lived in the home and I rented out the other rooms, but then you're allowed in the United States to get a new primary residence loan every year. So then one year and one day, I went back to my mortgage guy and said, I want another primary residence. I'm moving. He said, where are you moving? I said, I'm moving literally down the street.

11:18He was like, why? I said, because I'm going to make this home a co-living home now and I'm going to move into a new home. And he was like, well, I guess you can. It's completely legal. And that one was 5 % down. Right. So, and I had a student come to me and there may be some people listening to this and being like, Sam, that's a cool strategy for less money in the deal. But like I have kids, I have a family, there's no way I could, I could move. And I had someone come to me and he came up with the most brilliant idea. He said, I'm going to do a prime. I'm going to move into a home with my family.

11:41We're going to live in it for a year, no roommates, no housemates, but I'm going to buy it specifically for co-living. When one year and one day happens, I'm moving out because that's where I don't want my family to have to live with anybody. And then I'm going to do all co-living in that home. And we're going to buy another primary residence loan. He said he only needed like three homes to reach his like low level of financial freedom number. He's like basic level. He said, so I'm going to do that three times. He's like, and look, Sam, my current plan to retirement is 30 years. He's like, if this gets me there in three, I'd be willing to move three times in three years to make this happen.

12:11And I was like, dude, that's really cool and creative. Yeah. What's the sacrifice you're willing to make? Sure. Yeah, exactly. So primary residence loan is the way to do it. Obviously, there's all kinds of different types of loans. So yes, at some level, you're going to either need a partner, you're going to raise that capital, or you're going to need to save that capital to buy that first home. Then you're going to need to convert this to co-loving at some point, right? You need to put up walls, you need to put up closets, and you're going to maybe need to take a half bath and convert it to a full bath.

12:35Because you never want more than three people sharing one bath. That's just the rule of thumb in co-loving. Okay. And in order to do that, you're either going to need the capital. That conversion can be, my first home, it was$4 ,500. But more accurately now, it's probably closer to$20 ,000 or$30 ,000. Yeah, in terms of the rehab or the construction. Yeah. Now, we have a strategy. I'll just mention it briefly here. It's called the invoice authorization. So here's what we do for our students now. Because I have a lot of students that don't want to put out that capital. This is something we teach.

13:04If you're selling me your house, Nick, and I'm just going to pick a wrong number, it's$100 ,000. Yeah, it's like 19, it's almost 2 ,000 square feet. Yeah. So let's just say it's a six bedroom house. You're selling me your home. Let's say you're selling to me for 100 grand and I negotiate 20K off. So I negotiate buying it for 80 and I'm just making up numbers. Instead of you giving me that 20 ,000 as a discount, like, okay, I'll give it to you for 80 grand. I just come to you and I say, hey man, I'll buy it for 100. Just write my contractor a check for 20K at closing. Would you do that? And you're like, yeah, I guess as long as I still get my 80K.

13:35And I hope people are maybe kind of following these numbers here. So we have a strategy now for all of our students that by co-living, we get the seller to pay for the rehab. And we're successful in probably 95 % of the cases in doing that, even on the larger rehabs. Okay, so it's all the same to them. It's just a way to roll it into the financing, basically. That's exactly right. Got it. So now you're just paying monthly for that construction cost instead of paying that 20, 30 grand up front to move walls around. That's exactly right. Yeah, you're kind of wrapping it into whatever your loan is, whatever interest rate your loan is.

14:07six and a half, seven and a half percent is in essence what you're paying, but it's, you know, it's going to be amortized over 30 years. Got it. More with Sam in just a moment, including what kind of neighborhoods to look for, pricing strategy, and screening for great tenants coming up right after this. When it comes to leveling up your life and your business, it's wild how much the basic stuff matters, like how you talk to your customers, how you keep your team on the same page. A cleaner, more modern setup can make everything feel smoother. That's why I'm excited to partner with Quo for today's episode, spelled Q-U-O.

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16:38And so if I'm firing up Redfin nearby, maybe not nearby because the housing is kind of crazy in this area, but I probably want to look for something without an HOA. Like, does it have to be more like no subdivision? Like, it's got to be kind of a standalone. Because just imagine, you know, the neighbors and the homeowners association starting to be like, yeah, again, why do you have 10 cars out in front here? If I could give your listeners a little checklist, I would give them these five things to look for. So number one, no HOA. Nick, you're right on the money. Which is probably a checkbox for a lot of people doing house shopping anyways.

17:14For rentals, yeah. You don't really want to be in an HOA for rentals, yeah. So no HOA is big. Sure, sure. All my homes were initially in HOAs and I got sued by an HOA for like$365 ,000 over co-living. And I was like, you know what, guys? I was just thinking about selling that house. I kicked everybody out the next day. I sold that thing so fast. So it's like, I don't want to deal with this. So no HOA. Yeah, it's not worth the fight. Okay. Second thing is we're going to call it neighborhood fit. Neighborhood fit is really simple. It's when you go through that neighborhood, does everybody's grass look perfectly mowed?

17:50Is there any street parking at all? Or is this a everybody's got their white picket fence and it's perfectly done neighborhood? If so, run. Go into another neighborhood, somebody's grass is a little bit long and it doesn't look like anybody cares. Somebody else is parking their work truck in their front yard. Somebody else is parking on the street, working on their car a little bit. It's a B minus. If you're into real estate, there's these terms they use, B minus, B plus neighborhood. But it's a working class neighborhood homes a little further apart, early 2000s, late 90s, you know, late 1900s, that's what you want.

18:22So my kids say, oh, the late 1900s, what was it like? Did you have, what did rich people drive in the 80s? A horse? It's like, come on, people, we had cars. I just, that came out of my mouth and I was like, wait, did I say that right? Late 1900s? Okay. It is late 1900s. Neighborhood fit. Square footage. We already covered that. That would be number three. So just you're looking for a large home. I don't look at anything less, nothing less than 2 ,000 square feet, nothing less. I mean, preferably 2 ,500 square feet or bigger. So that's key. The fourth thing you're going to be looking for is no pools or no amenities, right?

18:55You just want basic housing. You don't need a pool. So we do no pools. And then you're looking for what we call a commutes distance. A commutes distance means you are within a commutes distance. Now, every city has a different definition of what a commutes distance is, but a commutes distance to local employers that have a ton of employees that make between$50 to$20 to$25 an hour. So that could be Amazon Warehouse. Airports have tens of thousands in any major city of those, you know, someone that makes that income range. Amazon Distribution Centers, all of that. You're looking for a commutes distance.

19:22Okay. And then the last thing I would say is obviously the biggest one maybe is parking. If it doesn't have parking, and you don't need 100 % parking. If you have a nine-bedroom home that you're going to convert to nine bedrooms, you don't need nine parking spots. You need six. The formula is two-thirds. Two-thirds the number of bedrooms to parking spots. You might say, well, why is that possible? Why not 100? And the truth is, like, someone's taking the bus. Someone's got a scooter. Someone is at grandma's house. You have one room vacant. There's an ecosystem. Someone works first shift. Someone works third shift.

19:49So it's just, you never have everybody there all the time. And only a certain percentage of the people actually even have cars. Got it. If I could give one bonus one, it would be public transportation. If you're a walking distance to public transportation, that's a huge plus for this type of a home. Okay, this is definitely a helpful list of criteria. and then kind of on you to look at your different financing options and say, okay, net, net, it's going to be$5 ,000 a month in terms of my payment, my taxes, my insurance, my utilities. And then I got to go out and fill the house for$6 ,000 a month.

20:26And then I can make my$1 ,000 a margin. Is that kind of the next phase of this? To underwrite it, you mean, just to kind of like understand what the numbers are going to be? Is that kind of what you're referring to? Yeah. Yeah. I mean, there's a whole calculator. Do a comp with like, okay, a studio is$1 ,000 a month. So I'm going to be at 800 per bedroom or like what's typical? 70 to 80%. Actually, you hit it. Whatever a studio price is, you're going to be 70 to 80 % of that range for a room. Okay. Now that varies because like if you have a huge room or a private bath or something like these things vary the price of a room, but you know, kind of as a general rule of thumb, you're going to be 70 to 80 % of what a studio apartment would go for.

21:04Are you primarily renting to single people or do you have couples coming in too? We recently just opened up to couples, actually. The home has to have enough parking for them. We prefer them to be in a room that has a private bath versus a shared bath. They pay a little bit extra and they both have to be on the membership agreement. But yeah, we just, and that can work really well. So we do allow that. We don't allow any kids. There's liability around that. And then we only try to allow one couple per home. So it's not like couple, couple, couple, couple, couple, couple, you know, five couples in a home.

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21:33It's right now our standard is one. Now we may open that up. We may allow two per home, but so far it's been working out well. This is one of like our like mid-20s regrets or early 20s regrets. Like we moved to California, early career, you know, we had a couple other sets of couple friends where it's like we could have had such a better place if we pooled our resources, all lived under one roof and we probably had a much better time than all like trying to scrape together rent for like our own places. It's like, oh, yeah, I don't know. There's something to that. A friend of mine speaks really highly of this entrepreneur house, the hacker house that they had like in San Diego.

22:12It was like, oh, we have four or five dudes in one bedroom. You know, we're in not one bedroom, but like in this house, we brought in, you know, this chef every week who would make us power smoothies and like we'd just be hacking away at our laptops. Like that actually sounds perfect for like early 20s. Like I want to go build something. So I could see how this would would appeal to really different niches, right? Like there's the, you know, service worker community, but there could be student housing. Maybe that brings up another issue. It could be like assisted living, maybe. I don't know if you want to play in that area, but it could be the sober living house.

22:44Like there's different models underneath this co-living umbrella. There definitely are. I've got a buddy who has kind of an entrepreneur house in Phoenix. He's I mean, to even join, you've got to fill out like a six-page application. They're doing cold plunges every morning at 5 a.m. I looked at that. I was like, dude, I don't even, I'm a pretty intense entrepreneur, but that is like more intense. So he has a little harder time filling it, but he gets a vibe. I mean, these people pay extra. They stay. They've got this amazing community. So you absolutely can create that. Yeah. It's like your own personal mastermind group built in.

23:17That's what he does. He does masterminds in the evenings. It's pretty badass. I think to scale this to multiple, multiple, multiple homes in one market, I think it's good to go after what I think is the largest population that needs this, and that's workforce. But it's a lower income workforce. And I think that's how you'll fill your home the fastest. But you mentioned all those niches. You've got nursing professionals. One of my students recently just opened one for veterans only. So, like, that's kind of cool. You mentioned the sober living houses. That's kind of a different niche for sure. Okay.

23:48I'm trying to think of whatever. of assisted living. Assisted living in these homes can be, you know, with some sort of around the clock care. It's sort of a still a co-living kind of model where you've got five, six, seven, eight people that are elderly that are in a home. So many ways to kind of tackle this strategy. Where do you go next in terms of marketing the home to fill it with tenants or maybe even before that, like prepping it with, you know, great staging photos or like, I don't know what else goes into it to make it market ready? You know, we only furnish the common areas. When I first started to come up with this concept, and obviously sharing homes has been around for as long as people have existed.

24:25So it's not like I invented the concept of living together. But I was definitely around, at least in the United States, when it was starting to gain traction and people were like, co-what? Living together with who? And still, that's the reaction we get. But I mean, it's definitely more acceptable now. I bought my first home 14 years ago. So it's like first co-living home. So when I was there, people, it wasn't really a thing. And somebody reached out to me from Berlin. And he said, he kind of, he said, Sam, in the United States, he goes in Europe, we already all live this way. Yeah. Very common.

24:51We have building codes that are specifically for co-living. He goes, but in America, he goes, I trust me. He goes, mark my words. The room will become the new apartment. And I just thought that was such a cool way of saying it. Like, that's the way we're going. So I want people to move all their own stuff into their own room. I don't want to have it furnished and it feel like a hotel or an Airbnb. So we only furnished the common areas and then the rooms. And obviously, yes, staging that common area really well, fully furnished kitchen, getting good photos, and then just blasting it out and all the places that you can list a room for rent is the next step if you want to fill this thing, right?

25:21There are so many places now that this is gaining popularity. There's so many places that you can list. You can list Zillow just created a spot specifically for room for rent. Roomies, Roomster, Facebook Marketplace is a good place. Believe it or not, Craigslist is still a good place. And now there are other big tech companies that will allow you to, you know, place your home on their platform, similar to like what you could do with Airbnb. You know, so there's one called Pad Split. There's one called Common. There's one called Homeroom. You can kind of place your and get leads that way. So yeah, then you get it out and it's just kind of like you rent anything else.

25:55You want to vet those people really well. You want to make sure they're a good fit for your community. You want to make sure they've got the income. Just think if you're renting anything out. You want to make sure that person that rented out is going to stay for a while. It's going to pay the rent and it's going to not cause problems in that home. Yeah. And you just look for like 3x income to rent or, you know, any other must check this box and, you know, red flags to avoid. I mean, some of the obvious stuff is like, we'll do a background check and they can't have any violent history. We'll do an eviction check.

26:26They can't have not have any evictions in the last five years. Maybe we look seven years. I forget. You know, you're going to do a vibe check. All of our members right now, we still meet in person to show them the home. We just ask them. We do a little interview of them. What's a day in the life of? Have you ever lived in co-living? So we'd love for them to have had some shared living experience because they're going to be sharing space and it's nice for them to have that. You can call their previous places that they lived and just get that if you really want to go deep. The references of their previous landlords.

26:52Hey, how were they as a member? Did you kick them out or did they leave? You know, kind of thing. So we'll do that. What other red flags do we have on people? I mean, someone who's just rude or kind of combative. if you have a very, very type A personality, sometimes that doesn't always go well with co-living because we like the homes where people work. We look for two and a half times revenue, actually. I mean, we'll do three Xs, great, but we'll look for sometimes even two or two and a half times. I mean, sometimes you're dealing with people that are making 15 bucks an hour and they need a place to live.

27:22And so,$700 a month or$750 or$800 is significant. Or maybe they're on a fixed income, social security, they're on disability, sometimes that too. Okay. You mentioned furnishing the common areas. Are you also doing the Airbnb thing of like, well, here's 10 plates and 10 cups and 10 sets of silverware. Are you doing kitchen stuff too? Or it's like everybody brings their own? We used to let people bring a lot of their own stuff, even though we would furnish it basically. What happens is the common area just ends up becoming a dump. Someone's like, I got a couch. Can I bring it? And so now the rule is absolutely zero items in your personal space.

27:55We'll give you a labeled cabinet. That's like room one, room two, room three, whatever. We'll give you a labeled shelf in the fridge and a labeled shelf in the freezer. Okay. And we have a new refrigerator for every six people. So one refrigerator fits six people. That gives us six shelves in the fridge, six shelves on the door, and then same with the freezer, right? Side by side is usually better than over under for this type of arrangement. And so, yeah, you give them that, that's where your personal space. Otherwise, realize, wait, can I put my shoes at the door? Absolutely not. And we have cleaners that come in, professional cleaners that clean the common space once or twice a month.

28:26And if they see some personal items, they put it in a box. If it's still there, they throw it away. And the next time they come, if it's still there, they'll throw it away. Because you want to walk in that home and it to be clean, it to smell good. You don't want people leaving their stuff everywhere. So you've got to kind of hold to a real fast rule there or else it can get out of hand really quickly. And then when you go to show an empty room, they're like, I don't want to live in a dirty house. Like, you need to look good. Right. Yeah. Have it well presented and make sure everybody's abiding by those rules.

28:54Kind of picturing like Harry Potter, like the Gryffindor common room. Do you find people hanging out like in the living room? And it's like, oh, we have a crackling fire or we're watching the game and we're hanging out. Like, that would be like one end of the spectrum. Hey, we're all friends. We just, you know, we were strangers, but then we met and now we're hanging out. And it's like, or is it the introvert city? Like everybody just going, you know, head down. I'm going back to my room now. Yeah. I think the truth is the common areas get used less than we would prefer. We'd love for the crackling fire to be the vibe.

29:25And there are some homes that that is the vibe. They do a barbecue every Friday. They get together. They watch WrestleMania in the living room together. I mean, there is that happening. I lived in co-living homes for 13 and a half years. So like I, you know, and my housemate, I remember the day he pulled me aside and I knew him pretty well. He was like, Hey, remember the party you hosted for the housemates I met and the girl that came over, we're getting married. Like he had developing this relationship. He's like, we want you to marry us. Cause we met at the party that you held for that. It's like, I was like, I go, I get my, you know, I get ordained online.

29:56I'm like, heck yeah, I'm going to be a pastor and marry this couple, you know? So like, that's, that's an extreme version of like, it can, that, that stuff can happen. And I'm still in touch with them to this day. Like it was 10 years ago, 11 years ago, 12 years ago. But on the other hand, there's, there's people dealing with people and there's going to be, hey, you stole my peanut butter or like there's got to be drama. Like what kind of stories do you have on that side? Yeah, I'll give you a horror story if you really want a horror story. We'll be back with Sam right after a quick word from our sponsors.

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32:43Because I want people to look at this strategy realistically. Now, I will say this before I tell the horror stories. 98 % of the horror stories can be avoided if you let in the right people. But letting in the right people is a skill you develop over time. So you get it wrong a decent amount. And then you got to kick people out, which is something else the membership agreements up with. Yeah, well, I mean, imagine even, well, now you're on the hook for your$5 ,000 a month payment. You're like, I got to fill these rooms because if they're not filled, I'm losing money. And so like, yeah, I can see how you'd be like, I'm going to accept this tenant that I otherwise maybe wouldn't and hope they work out.

33:18In my first call of Manhattan, man, I just did that exact thing. I let this guy in. I raised the rent a hundred bucks and he was the first guy to say he could pay it. I was like, he could pay it. He's in, right? I let him in. I didn't do a background check, didn't have agreements. And this guy ended up being this guy that would knock on my door at like 2 a.m. in the morning. I was living in the house at this time. And he'd be like, Sam, and he would just say the weirdest stuff. You know, your vice is going to kill you. Just like, he was like being a preacher at my door at 2 a.m. It was just the weirdest, weirdest vibe.

33:47I was like, I got to get this guy out of my house. Trying to get into your head. He was trying to get in my head. He was like, I know what you do. I was like, oh my gosh, this guy's creepy as heck. But then other, I mean, you'll get other situations. All of our homes are co-ed. So like you might get three or four girls that don't like one of the guys in the home and then make up a story about him. We got, you know, three or four girls got together and just didn't like this dude. And they made up a story that he grabbed a knife and like came after them. And we were like, really? He grabbed a knife?

34:09Or was he just like cutting the cucumber in the kitchen when he was making his turn? So in those situations, sometimes you have to make a call. You've got to go, okay, do I kick all four girls out? Do I kick the guy out? Because otherwise you just create dissonance in the home. So that's one example. That's one story. Another story might be simple like, John ate my peanut butter. I had a whole thing of cinnamon rolls and he ate them all. Yeah. Yeah. Just, I mean, it's, I mean, the office fridge, except even tighter quarters, you know, it's like, hey, who took my sandwich? Totally. That's why we now put cameras in the common areas.

34:47We have cameras recording 24-7. We can see what's going on. We can go back. We can solve some of those issues. A lot of this stuff is solved with good systems in place. You'll get stupid stuff like people parking in front of neighbors. Like that's, we had recently an issue where someone like brought a semi truck. Like he drove a semi truck and he parked it in the neighborhood, but he blocked off like the other neighbor's driveway so they couldn't get in and they were pissed and they called the city. So like we had to deal with that. And we're like, dude, you can't bring your semi truck home. Like you need to go park that somewhere else.

35:17This is not a semi truck neighborhood. So now we have rules around that and, you know, you'll get people flushing weird stuff. So now we put in rules where like we can charge them if we can, they flushed stuff they shouldn't have flushed and the sewer backed up. Now we can charge that to the home. Like it's kind of been an iteration of just like, okay, Bitcoin mining, like someone Bitcoin mined in the home. Like, you know how much electricity that takes because you're the one paying for the electricity. Oh, yeah. They're like, hey, utilities included. Let's go. So you're like, hey, dude, like, sorry, no.

35:47New rule to the house rules. No Bitcoin mining. Within reason. You know, like stupid stuff like that. Yeah, yeah. Building the manual as issues come up. That's exactly right. So those are some of the stories you got to kind of be aware of and have good house rules on the front end so people know you will get kicked out immediately if you break these no weapons. Some dude just brought a loaded like Glock and just like forgot that he left it on the couch. So one of the other people in the home who was like deathly afraid of guns found it and was just like freaking out. Like, what do I do? there's a gun in our house.

36:21We were like, no weapons. If you're a police officer, keep it in your car. Just little things like that that get annoying. I mean, every once in a while, you'll just get someone that's like, I don't like John. And you're just like, cool, just avoid them. But like, we give everybody one free transfer. If it's a really big issue, we'll just be like, cool, we'll transfer to another house completely free. If it's like, there's a bunch, there's tension. Is it typical to sign people up for like a 12 month term? Yeah, a year. Yeah, 12 month term. Okay. Do you find like, is it typical to have a pretty good renewal rate?

36:56Or do you find people kind of graduating out as they level up in their career and stuff? There definitely can be some turnover. But I mean, right now, 40 % of our members have been in over three years, with some people as long as four and some people as long as five. Oh, okay. Five years. So it's, it's home. Yeah. I mean, it's kind of the dream as a landlord is to minimize turnover and minimize vacancy. Yeah, well, there can be more turnover in an environment like this than say, if they're renting their own place or they're renting a whole house themselves. So we're launching this initiative where if they stay past a year, they actually make a little bit of money.

37:26Like we actually have to pay them to stay basically. Oh, we're going to try it. We're going to see, it might be 10 bucks a month, but like, and then every six months they get a check or whatever, because to these people, 60 bucks, 50 bucks, a hundred bucks, make 50 bucks an hour. That's, that's not nothing. And so we're going to launch a little, like be a good member initiative and stay past your initial term. Yeah. Like a loyalty punch card, you know? Exactly. That's exactly what we're trying. Yeah. I'll let you know how it goes. Let's circle back around in a year or two. Sure. So started out living in the house yourself.

37:58Hey, I'm going to rent out the other rooms. I'm going to live in this one house hacking. And then eventually leveled up and you're doing it locally. And so you're still able to kind of manage, but now you're overseas and still managing the portfolio. And I thought I saw you, like you also have a management company. And so it's like all kind of hands off at this point. And so this is kind of where it can go down the road as you build up this portfolio of assets, this recurring cash flow, and have it be hands off. Yeah. And it doesn't even mean that you have to build your own property management company.

38:31There now are property management companies that if you say, look, I've got a nine-bedroom, ten-bedroom co-living home. I mean, there was none of these, by the way, when I first started. I'd go to people and be like, would you manage my four-bedroom home? And they were like, four different bedrooms? I was like, yeah. They're like, yeah, no. And I was like, dang. So I built my own company out of necessity and now it's big and now it's got a whole team and it's a bunch of, you know, it's got a big payroll and, but it's, now it's a company that manages it for me, all my properties and everyone else's.

38:58So you don't have to do that if you have the right connections. Now you can just, there's companies out there that will manage your one home, manage your two homes and they'll do a good job. Well, my company is one of those. Now I only manage for my students right now just because there's so many people that want us to manage and I want to, I don't want to like expand it to some global or nationwide company, but that's an option. Yeah. It's easier to do now than ever. Okay. And that's like 10, 12 % of the rent roll or? 15 % probably is typical. For co-living, typical property managers, 15%. If you're lower than that, if someone's doing it lower than that, they either A, don't know what they're doing or they're just going to be bad.

39:30It's just, and that's just the, that's just the truth. Every once in a while you get a property manager that wants to quote unquote get in the space. And they'll be like, ah, we'll do it for 10%. You're like three months later, they're like, yeah, this is more work than we thought it would be. This is not that. So yeah, you're looking at 15 % to 20 % for someone to manage a co-living home well that has more than six or seven or eight people in it. For them to handle member concerns, maintenance, filling, lease up, agreements, for them to handle the whole gamut, that's standard for the industry, typical for the industry.

40:04Okay. And there are more and more companies doing that these days than there were just because it's become more of a thing. It is, and it's difficult. There's nuances to it. It's not that it's so much difficult as much as it is just that like, if you don't know what you're getting into, things just blindside you and surprise you, you know? So you've got to have the right things in place to kind of do it correctly. But yeah, I didn't have all that when I first started. I just started renting out rooms in my current home. So it's like, you can start anywhere. But if you're going to do a 10-bedroom home and you're not going to live there, there's some systems you need to have in place for that thing to run really smoothly.

40:38Yeah, yeah. Any good blindside stories, mistakes, surprises that are safe to share? Other than the guy picking up the knife. Let's see. I would not manage myself unless I just loved management. So I think I would try to find the best person to hand that off to. And again, I couldn't do that because there weren't people to do that for me. So I had to build my own company and had to do a lot of it myself. You know, only now in the last three, four years, am I able to be completely hands off and live in Columbia and have it all taken care of. But that wasn't the first eight years. I was very involved.

41:06Even the last couple of years, I was involved in that company, helping rebuild it because we fired our property manager and had to get a whole new team. But like there's weird things that happen in co-living that just don't always happen. You know, someone's waking up in the middle of the night screaming, like that's a big deal in co-living. Someone's doing that in a single family home in the middle of nowhere. Like nobody cares. Scream all you want in your single family home that they rented from you. It's not hurting the home, but that's a big deal if someone's... Okay, I'll tell you a funny one.

41:30This is a good ending. My team reaches out to me recently. This is like literally in the last three weeks. Sam, okay, like someone's been shooting up heroin in the bathroom. There's blood everywhere. There's blood on the shower. There's blood on the thing. And like, you know, like when, when you send a cleaner in to deal with blood, you can't just send any cleaner. And you got to deal with like the guys, they got to come in in the hazmat suits and this. So it's like$8 ,000 to clean up blood. Right. And they're like, we're kicking this guy out immediately. We're getting the hazmat guys in there.

41:55I was like, guys, how much is that going to cost? I don't hear anything from my team. And I just gave them the thumbs up. I was like, do whatever you got to do. Get this freaking guy out of there. What the heck? He hit a vein. He was shooting up. Okay. I'm on the next meeting with them like a week later. I'm like, guys, whatever happened to the room? They were like, oh, we forgot to tell you. I'm like, yeah, what happened? They said it was just hair dye. He spilled some hair dye that was red that looked like blood. I was like, you guys didn't think to tell me that. I was thinking about this all week.

42:17They're like, yeah, the cleaner actually just like charged you 150 bucks and it was good. So there's a good story. But like, you got to deal with that stuff, right? And you got to deal with that. I hope it really was hair dye. It really was. It really truly was hair dye. Like Like that was actually how the story went down. It was hair dye. They didn't have to, no hazmat suit guys, whatever. And we actually let the guy stay because we weren't able to get ahold of them. We just made this big assumption. So the cashflow can be insane. I mean, literally, I feel like I need to say this now that I've told some of these horror stories.

42:45Like literally you could have three homes and you could replace a W-2 that's less than a hundred grand, right? You can have a home that's producing two, 2 ,500, 2K a month if it's run. That's with paying property management. Now, if you're taking the 15 % and you're managing it yourself, you're taking the 15 or 20%, you're managing yourself, boom, one or two. so you can get there in a really cool way. Is there nuances? Yes. Is it hard? Yes. Is there some of these challenges? Yes. Do you have a lot of systems in place for this? Yeah. But those are some, I don't normally tell this many horror stories on a podcast that I'm introducing people to.

43:12I think it's really important to showcase both sides, right? Like, yes, there's money to be made here, plus all of the benefits we didn't even talk about, like of owning real estate and taxes and depreciation, all of that stuff. And look, you can replace your income with three properties versus, well, if I'm making 100, 200, $50 a month from a single family rental. Like I'm going to need dozens of these things to get to the same level. So different levels of complexity, like you're dealing with more people, more people, more issues. And so it's like putting the systems in place to put some guardrails around that.

43:46I think that makes sense. And I appreciate the transparency and like, look, it can be really great, but don't expect it to be, you know, rainbows and unicorns a hundred percent of the time. And can I talk just for a second about the mission of it too? Because I think that's important for people to walk away from this podcast. Yeah, go for it. 600 ,000 people will be homeless in America tonight. I'm not saying all of that is due to affordability, but that's a freak ton of people in America. A lot of that is, some of that is due to affordability for sure. There's mental health. There's some other issues, right?

44:12Obviously there. We are 7.3 million affordable housing units short in America. We are not building. People are saddled up with more debt than ever before. They're spending a greater percentage of their income on housing, which means that their quality of life decreases. So I lived in co-living when I made a hundred grand in my business because I wanted to like go live a great life. I wanted to go buy gifts for my family and travel. I didn't want to spend 50 % of my income or 30, 40 % of my income on housing. So the mission behind this is you're providing, if you become a co-living investor, you're providing a housing option for people that is cheaper than the cheapest thing.

44:49So therefore you are an inventor of cheaper price points. You literally are an inventor of you're putting something on the market that did not previously exist and you're hopefully doing it in a way where it's clean and it's quiet and it's safe. And so that is why cities love us. That is why not all cities understand us, but once they do understand us, they love us, right? And so this is a really big key to solving affordable housing. And the last thing I'll just say is the Surgeon General of America came out and said that the effects of social isolation on our culture today are equal to the smoking 15 cigarettes a day.

45:20That's the health effects of what happens when someone feels isolated and socially. And so when you bring people together in an environment, yes, there can be conflict, but you also are bringing people back into community. But we're bringing back the shared economy, which I think has a lot of benefits. And so I love that. That honestly has kept me going when this has gotten hard is I want to do something good with my money. Of course, I want to create a great return. I want to impact the world. I love to be a part of businesses that I feel like are making a difference to those underserved. And this is, this isn't luxury apartments, which they're building tens of thousands of luxury apartments in Charlotte because that's what makes money.

45:51I'm serving a population that really, truly needs it. And that to me is heartwarming in addition to the money. Yeah. Take existing housing stock and turn it into more units. And I think that makes a lot of sense helping people find an affordable, safe, clean place to live. Well, you've got the Scale Your Co-Living Real Estate podcast. You've got scaleyourrealestate.com. Check out the free five-day co-living training over there. Sam, what's got you fired up this year? What's next? We're going to keep buying more co-living homes. We're going to double down on the education of this and getting the word out.

46:23So I really appreciate, Nick, the opportunity to share this because we're going to share the word with people that this is a way they can create income and it's a way they can change the world and really do something good for the world and good for America. Well, very good. Check Sam out. We'll link up his resources in the show notes. let's wrap this thing up with your number one tip for Side Hustle Nation. When I was looking into doing things outside of my business, it was so overwhelming with the options, right? I could do this. I could do this. I could do this. You'll listen to this. Co-living sounds good.

46:50I'm listening to the next podcast that Nick does. This sounds good. I think at some point you need to lock yourself in a room for as long as it takes and just say, which one am I going to go all in on? And then once you go all in on one, you just put in your blinders. You kind of stop listening to you. Like literally when I went all in on co-living, I'd go to these mastermind events and people would be talking about Airbnb and storage facilities and this. And I was just like, Sam, no, no, I'm doing this till it succeeds or it fails. And then I will switch to something else. Right. And I think, so I think that that blinder, like choose and then blinders choose and then stop listening to all the other noise is really what supported me.

47:26So if someone is listening to this and they're like, this seems like something I'd like to choose. We do do a free event. It's at www.scaleyourrealestate.com. It's a five day challenge. It is truly, totally free. There's no, you don't even have to buy anything. It's, I'm live. I do about 10 hours of training on co-living. And by the end of that, you could have everything you need to literally just jump into a co-living home. And so if you want to get on the waiting list, it's scaleyourrealestate.com. Scaleyourrealestate.com. Very good. We'll link it up. Choose and then blinders. I think that's very important because I'm the person who is like, at once, like I've done pretty well at staying in my lane.

48:00Look, I'm going to produce this show. I'm going to do it for a decade. but it's really dangerous because every time i talk to people like yourself it's like oh shoot why don't i do that or how come i don't have a vending machine route or what did you know you can make money doing this and it's like it's it's dangerous from that uh perspective but i like this call to pick the thing go do the thing you know there's there's a million different paths you can you can go and at a certain point you just got to decide so anyways if you're into real estate as a side hustle speaking of different paths you know it comes in a bunch of different flavors we talked co-living today.

48:29We've covered a lot of other ones on the show, including land investing and Airbnb co-hosting and creative financing and rental arbitrage, house hacking, all that stuff. So I put together a real estate playlist of those Side Hustle Show episodes. You can grab that for free in the show notes for this one at sidehustlenation.com slash co-living or just follow the show notes link in the episode description. It'll get you right over there. But that's your real estate themed side hustle show playlist. Really cool collection of strategies to go build some extra income. But big thanks to Sam for sharing his insight.

49:02Thanks to our sponsors for helping make this content free for everyone. Sidehustlenation.com slash deals is where to go to find all the latest offers from our sponsors in one place. Thank you for supporting the advertisers that support the show. That really does make a difference. But that is it for me. Thank you so much for tuning in. If you're finding value in the show, the greatest compliment is to share it with a friend. Fire off that text message. hey, did you know about this? Have you heard about this? That's a big help as well. Until next time, let's go out there and make something happen.

49:29And I'll catch you in the next edition of the Side Hustle Show. Hustle on.

From the publisher

What if you could create $1,000 to $2,000 per month in cash flow from a single property and need just three homes to replace your W-2 income?

Sam Wegert discovered this path 14 years ago when he started house hacking a single property.

Today, he owns over 200 rooms across his co-living portfolio, all passively managed while he lives overseas.

Co-living is when you buy a larger house and rent out individual rooms instead of the entire property.

It's the difference between earning $250 a month from a traditional single-family rental and $1,000 to $2,000 from the same-sized property set up for co-living.

From the Scale Your Co-Living Real Estate podcast and ScaleYourRealEstate.com, Sam Wegert shares how he turned a simple house hack into a six-figure business addressing affordable housing from the ground up.

(Join his Free 5-Day Co-Living Challenge to learn how to develop the mindset that will take you to success as a CoLiving investor!)

Listen to Episode 721 of the Side Hustle Show to learn:

how co-living can produce 4-5X the cash flow of traditional rentals

the formula for converting homes into profitable co-living spaces

creative financing strategies to get started with minimal capital

Full Show Notes: $1k a Month with your First Co-Living Property

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About The Side Hustle Show

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The award-winning small business show covers the best side hustles and ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠side hustle ideas⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. We share how to start a business and ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠make money online⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and offline, including online business, side gigs, freelancing, marketing, sales funnels, investing, and much more.

Join 100,000+ listeners and get legit business ideas and ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠passive income⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ strategies straight to your earbuds. No BS, just actionable tips on how to start and grow your side hustle.

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721: $1k a Month with your First Co-Living PropertyThe Side Hustle Show · 48 min
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