How to Set Up a PadSplit for 2–3X ROI with Ray Nunez

Why PadSplit Is the Next Big Opportunity in Affordable Housing

If you’ve been paying attention to real estate investing, you know the game keeps evolving. A few years ago, Airbnb was the golden ticket for high-yield single-family rentals. Now, co-living is taking center stage, and platforms like PadSplit are leading the way.

In this episode of the Affordable Housing & Real Estate Investing Podcast, I sat down with Ray Nunez, Account Executive at PadSplit and an active investor who owns multiple co-living properties himself. Ray shared tactical strategies on how to acquire, renovate, and optimize houses for PadSplit so investors can 2–3x their rental income compared to long-term rentals.

This matters for every affordable housing investor, developer, and advocate because PadSplit provides both financial upside and social impact: it creates affordable living solutions for working professionals while generating reliable cash flow for property owners.

How Does PadSplit Work and Why Should Investors Care?

What is PadSplit?
Ray explains it simply: PadSplit is the largest co-living marketplace in the U.S., operating in more than 18 cities. It allows property owners to rent by the room while providing:

• Marketing and tenant screening
  
  

• Rent collection and dispute handling
  
  

• A dedicated account executive to guide setup and operations
  
  
  

For investors, this means less risk, less hassle, and higher returns.

What Type of Properties Work Best for PadSplit?

Investors often think you need a huge house to run co-living, but Ray debunks that myth:

• Focus on layout, not size. Properties with bonus rooms, Florida rooms, or oversized living spaces can easily be converted into multiple bedrooms.
  
  

• Bathrooms are key. A 2–3 bath property is more valuable than a 4–1. Extra baths reduce renovation costs and increase tenant satisfaction.
  
  

• Windows and egress matter. Every bedroom must have two ways out (window + door). This is both code and safety—and makes rooms rentable.
  
  

Ray’s favorite play? Buy homes with awkward spaces that families overlook. Those “weird” rooms often become the most profitable bedrooms in a PadSplit conversion.

How Much Does It Cost to Convert a Property into a PadSplit?

Ray shared his own numbers:

• Garage conversions: ~$8,000 for two new bedrooms
  
  

• Full room setup: $700–$1,000 per room (furniture, locks, Wi-Fi setup, staging)
  
  
  

• Premium en-suite baths: Generate $40–$50 more per week than standard rooms
  
  

With these strategies, Ray has created properties that net thousands per month, far outperforming standard rentals.

How to Pick the Right Market for PadSplit Investing

Ray advises investors to evaluate markets with both cash flow and appreciation potential:

• Cash flow-first markets: Jacksonville, Indianapolis, Cleveland — high rental demand, lower purchase prices
  
  

• Appreciation + demand markets: Orlando, Atlanta, Phoenix — strong job growth, population inflows, and landlord-friendly laws
  
  
  

Investors should also look for:

• Multiple industries (not just one employer town)
  
  

• High rent-to-income gaps
  
  

• Cities with growing demand for affordable housing
  
  

Pro Tips to Maximize ROI in PadSplit

Ray dropped several gems for new investors:

• Install Wi-Fi locks for remote management
  
  

• Add mirrors in bedrooms to reduce bathroom congestion
  
  

• Stage rooms with desks, TVs, and storage to attract higher-paying tenants
  
  

• Repurpose closets into rentable storage for extra income
  
  

• Properties with pools can charge a premium if managed well
  
  
  

Key Insights from Ray Nunez

• The money is made in acquisitions and smart conversions, not afterthought renovations.
  
  

• 2–3 bath layouts are worth far more than “bigger” homes with fewer bathrooms.
  
  

• Staging and photos matter: Better-looking rooms rent first and at a premium.
  
  

• Property management saves time: Outsource to scale beyond a handful of houses.
  
  

• PadSplit allows investors to balance cash flow, appreciation, and social impact.
  
  

Best Quotes from the Episode

“The money is made in acquisitions. Buy the right property and plan ahead, don’t treat it as an afterthought.” – Ray Nunez

“A two-three beats a four-one every time. Extra bathrooms reduce cost and increase retention.” – Ray Nunez

“Instead of buying a house and just running around trying to pick anything, select based on features that generate higher rent.” – Ray Nunez

“You don’t want seven houses, you want 47 doors. That’s how you scale freedom.” – Ray Nunez

Common Questions About PadSplit

How much more can I make with PadSplit vs. a regular rental?
Typically, 2–3x. A property renting for $1,200/month might generate $3,000–$4,000/month when rented by the room.

What’s the average cost to set up a PadSplit?
$700–$1,000 per room for furniture and locks, plus any renovation costs for conversions.

How are tenants screened?
PadSplit handles background checks, income verification, and eviction history. Hosts also have the final approval before someone moves in.

Do I need property management?
If you don’t want to deal with tenant disputes or maintenance calls, property management is highly recommended.

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. Episodes like this with Ray Nunez prove why this show continues to lead the conversation around profitable, impactful real estate strategies.

DM me @kentfaihe on 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.