How PadSplit Investors Earn 20% Cash-on-Cash While Solving Affordable Housing

Why This Episode Matters

Affordable housing investors are constantly searching for models that deliver both strong returns and real social impact. In this episode of the Affordable Housing & Real Estate Investing Podcast, host Kent Fai He sits down with Beth Silverman, a Tampa-based realtor and investor, and Quentin Wendt, an operations leader at PadSplit. Together, they reveal how shared housing conversions can generate multifamily-level returns from single-family homes, all while creating dignified and affordable living options for essential workers.

If you’ve been frustrated by low cap rates in multifamily or feel priced out of traditional buy-and-hold rentals, this episode will open your eyes to a strategy that blends profitability with purpose.

What is PadSplit and Why Are Investors Paying Attention?

Investors often ask: What is PadSplit, and how does it compare to Airbnb or traditional rentals?

PadSplit is a housing model that takes existing single-family homes and converts them into shared workforce housing. Tenants rent by the room on a weekly basis, often at rates that are still significantly lower than traditional studios or one-bedroom apartments. For investors, the model creates higher rental income per property, while solving the affordability crisis for renters who earn less than $35,000 a year.

Beth explains it best: her $275,000 Tampa property was converted into a five-bedroom, three-bathroom PadSplit. With minimal vacancy and weekly rents ranging from $200 to $270 per room, she grossed over $56,000 annually and netted $20,000+ after expenses. That’s a 20% cash-on-cash return on just $92,000 invested.

How Do You Spot a Property That Works for PadSplit?

One of the biggest questions investors have is: How do I find a good PadSplit deal?

Beth shared her process:

• Look for wasted space: Big living rooms, dining rooms, or Florida rooms can easily be converted into extra bedrooms.
  
  

• Focus on bathrooms: Bathrooms are the highest-value feature. En suites rent for a premium and lease up within hours.
  
  

• Understand your local market: In Tampa, Beth targets homes priced $300,000–$350,000 that wouldn’t cash flow as long-term rentals but triple gross income as PadSplits.
  
  

• Check mechanicals: Updated HVAC, water heaters, and electric panels keep conversion costs lower.
  
  

As Beth puts it: “Bathrooms equal dollars on PadSplit. No ifs, ands, or buts.”

What Returns Can Investors Expect?

Investors want the numbers, and PadSplit delivers. Quentin explained that across markets, hosts are seeing:

• 18–25% cash-on-cash returns
  
  

• 11–15% unlevered returns
  
  

• 94% occupancy rates on average
  
  

Unlike Airbnb, where seasonality and unpredictable demand can eat into profits, PadSplit demand is steady year-round. Members include Amazon warehouse workers, healthcare aides, first responders, and seniors on fixed incomes.

Beth’s first PadSplit had her fully cash-flowing before her first mortgage payment was due. That speed to cash flow is one of the biggest investor advantages.

What Makes PadSplit Tenants Different?

A common concern investors have is tenant quality. Beth and Quentin addressed this directly:

• Rigorous screening: PadSplit requires background checks and income verification.
  
  

• Low barriers to entry: Move-in fees are $100 or less, eliminating the “first, last, and security” hurdle that blocks many renters.
  
  

• Community rules: Clear house rules and a “three-key rule” keep standards high.
  
  

• Credit-building: Tenant payments are reported to credit bureaus, helping renters qualify for future FHA loans.
  
  

Beth adds a personal touch with pizza nights and welcome baskets, which helps reduce conflict and builds loyalty.

Scaling From One PadSplit to a Portfolio

Another question investors often ask: Can I scale this into a real business?

Quentin’s answer: absolutely. PadSplit is a marketplace like Airbnb, and some hosts already manage dozens of homes. Successful operators:

• Use short-term rental staging skills to stand out with better photos and furnishings.
  
  

• Partner with property managers trained in PadSplit operations for two-day room turnovers.
  
  

• Leverage platform data to set competitive weekly rents and maximize returns.
  
  

Beth herself has helped bring over 100 units online in Tampa in just 12 months.

Key Insights for Investors

• PadSplit conversions can earn 20%+ cash-on-cash returns in high-growth markets like Tampa.
  
  

• Bathrooms, not bedrooms, drive premium rents. En suites are rented within hours.
  
  

• Weekly rents in most markets average $200–$270 per room, far exceeding long-term rental comps.
  
  

• PadSplit manages tenant placement, collections, and member communication, making it one of the most passive high-yield strategies available.
  
  

• Investors are achieving multifamily-level returns on single-family acquisitions.
  
  

Best Quotes From This Episode

• “Bathrooms equal dollars on PadSplit. No ifs, ands, or buts.” – Beth Silverman
  
  

• “Our investors are getting multifamily returns from single-family homes.” – Quentin Wendt
  
  

• “Before my first mortgage payment even hit, I was cash-flowing.” – Beth Silverman
  
  

• “We provide essential housing for essential workers.” – Quentin Wendt
  
  

Common Questions This Episode Answers

How much can I make from a PadSplit property?
Most investors see 18–25% cash-on-cash returns, depending on the market and property layout.

Do PadSplit homes have tenant problems?
Conflict is rare because of strong house rules, low move-in barriers, and proactive property management.

How fast do PadSplit rooms rent?
En suites rent within hours, and most homes reach full occupancy within four weeks.

What markets is PadSplit active in?
Atlanta, Tampa, Houston, Dallas, Orlando, Miami, Phoenix, Las Vegas, Richmond, Baltimore, and more.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments. His mission is to equip everyday investors, developers, and advocates with proven strategies that deliver both profit and impact.

DM me @kentfaiheon IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.