Designing Housing Around the Student Market
The Opportunity
Davis is a college town with strong demand for student housing. Rather than operate the property as a traditional single-family rental, I converted it into a student-by-the-room coliving model designed around the needs of its residents.
What I Did
- Created a student-focused coliving environment with fully furnished private bedrooms and shared common areas.
- Added a dedicated bike storage room, recognizing that bicycling is a major part of the Davis lifestyle and many students rely on bikes for transportation.
- Designed the property around the needs and lifestyle of the target resident.
Future Value-Add
The property sits on an approximately 8,581-square-foot lot, providing an opportunity to explore adding an approximately 1,200-square-foot Accessory Dwelling Unit (ADU), subject to zoning, permitting, and feasibility. This could create additional rental income and increase the property's overall value.
Investment Lesson
I don't just evaluate a property's current income. I look at the market, resident demand, current operations, land, and future development potential.
Why This Matters to Investors
This property demonstrates my approach to identifying residential assets where there are opportunities to increase income, create value, and serve a strong housing demand.
Buy the right property, choose the right operating model, and look for ways to create additional value.
From Fix-and-Sell to “Mailbox Money”
The Opportunity
I purchased this Garden Grove property with a clear Plan A: rehab the main house, build a 4-bedroom, 2-bathroom ADU in the backyard, and then sell the completed property.
The plan was to create significant value through renovation and development and exit through a sale.
When the Market Changed, I Pivoted
By the time the property was ready to be listed on the MLS, market conditions had shifted. Instead of receiving the type of offer I was targeting, I received a low-ball offer that didn't make economic sense for me.
Rather than accept an unfavorable exit, I pivoted.
Plan B: Keep the property and turn it into a cash-flowing asset.
I leased the property to a sober living operator, who operates the homes and manages the residents. I remain the landlord, collecting rent from the operator.
And this became one of my favorite house hacks:
Two Sober Living Homes. One Lot. One Landlord.
I built a 4-bedroom, 2-bathroom ADU behind the original home. The result:
Instead of managing individual residents myself, I have a specialized operator running the business while I collect rent as the property owner.
That's what I call my favorite kind of house hack: mailbox money.
The Investment Lesson
This property taught me an important lesson about real estate investing:
Your original plan doesn't have to be your final plan.
I had planned to sell. When the market changed and the numbers no longer supported my desired exit, I didn't have to force the sale.
I looked at the property differently and asked: “What else can this property do?”
The answer was to keep the asset, add an ADU, and create two housing opportunities on one lot while transitioning from an active renovation-and-sale strategy to a landlord strategy with an operating partner.
Why This Matters to Investors
This is how I approach real estate:
The ability to pivot is especially important in real estate because market conditions, financing costs, construction costs, buyer demand, and rental economics can change between acquisition and exit.
I don't want to be dependent on a single exit strategy. I want to understand multiple ways to create and preserve value.
What This Property Demonstrates
Value-Add Development
Built a 4-bedroom, 2-bathroom ADU to increase the property's housing capacity.
Strategic Pivoting
Changed from a fix-and-sell strategy to a long-term rental strategy when market conditions changed.
Two Homes on One Lot
Created two separate residential living environments from one property.
Landlord Model
Rather than operating the sober living business myself, I lease the property to a sober living operator and collect rent as the landlord.
Multiple Exit Strategies
The property demonstrates why I evaluate both the sale potential and long-term income potential of an investment.
Don't fall in love with your original plan. Fall in love with the numbers.
Building Long-Term Occupancy With Room to Grow
The Opportunity
I acquired, renovated, and operated this Phoenix property using a PadSplit-style rent-by-the-room model, creating flexible housing while generating income from multiple individual rooms.
Operating Results
Resident longevity has been one of the highlights of this property:
These results reinforced my belief that community, resident screening, clear house rules, and a strong resident experience can contribute to longer stays and operational stability.
Future Value-Add
The property also has multiple potential expansion opportunities, subject to zoning, permitting, construction feasibility, and economics:
- Convert the storage area into an additional bedroom
- Potentially convert the carport into another bedroom and bathroom
- Explore adding an ADU in the backyard
These opportunities provide potential future avenues for increasing the property's housing capacity and income.
Investment Lesson
I evaluate both current performance and future potential.
Why This Matters to Investors
This property demonstrates my ability to operate a coliving property remotely, create resident longevity, identify value-add opportunities, and build systems that can potentially be replicated in other markets.
Don't just ask what a property produces today. Ask what it could become.
