🔥 Earn 15% ROI with Simple Co-Living Rental Strategy

🏠 Top 10 Trending STR Homes for Sale

Author

Andy Thoms
January 11, 2025

Here’s what’s trending today’s issue:

✅ STR Classifieds: Explore The Top 10 Trending STR Homes for Sale!

✅ How to Achieve 15%+ ROI: Co-Living Room Rental Strategy For Stable Cashflows. Case Study and Resources.

✅ News Nuggets: Trending Headlines and Housing Highlights to Stay Ahead in Today’s Market.

— The STR Scout Team

🌲 $365K | New Gloucester, ME: Cedar Brook Cabin, 2BD/1BA, 380 sqft on 5 acres near Portland. Turnkey STR w/ $59K annual income. Featured on A&E’s Living Smaller. Fully furnished, branded, & ready to earn! View Post

🏡 $420K | Okeechobee, FL: 4BD/3BA STR split into 2 units: main house + 1/1 700 sqft garage apt. Earned $81K since Dec 2023. Optional management available. Turnkey investment! View Post

🌟 $479K | Sevierville, TN: Smoky Mountain 2BD/1.5BA creekside cabin near Dollywood & Gatlinburg. Grossed $62K in 2023. Features hot tub, firepit, game room, & more. Fully furnished, turnkey STR! View Post

🏔️ $489K | Beech Mountain, NC: Renovated 4BD + bonus room, 1800 sqft, turnkey STR at 4656 ft elevation! Best value on the East Coast under $500K. Furnished, major repairs done. Projections available. View Post

🌄 $549K | Boone, NC: Off-market 2BD/2BA modern cabin, 734 sqft. Built in 2022, proven STR success. Turnkey mountain retreat or investment in the heart of Boone. Exclusive opportunity! View Post

🏡 $585K | Arden, NC: 3BD/3BA, 1805 sqft Arts & Crafts-style home w/ 2BD main house + studio above 2-car garage. STR-ready, fully furnished. Features open floor plan, jacuzzi tub, & porch swing. View Post

✨ $650K | Austin, TX: Licensed 3BD/2BA STR w/ pool & hot tub. Proven 4-year income history, earning $70-80K annually. Turnkey investment. DM for more details! View Post

🌴 $660K | Panama City Beach, FL: 2BD/2BA beachfront condo, 1370 sqft, sleeps 6+2. $20K rentals booked for 2024 w/ repeat snowbirds. 9th-floor unit w/ stunning views, pool, jacuzzi, & more. FSBO w/ financing options! View Post

🏡 $750K | Austin, TX: Active Airbnb w/ pool! 4BD/2BA, 2286 sqft. Turnkey STR with great potential. Spacious layout, perfect for guests or personal use. Don’t miss this investment gem! View Post

🍷 $11M | Lockport, NY: 114-acre turnkey winery w/ 12 acres of vinifera grapes, 6-acre apple orchard, & 50 plantable acres. Includes 13,000 sqft wine facility, 1826 manor, event barn, & IP. View Post

Need an STR Loan Quote? 

15% ROI Potential with Simple Co-Living Rental Strategy

Today, we’re focusing on an innovative real estate strategy that’s gaining traction among savvy investors: co-living. In this article, we’ll explore what co-living is, why it’s worth considering, and showcase a detailed case study of a Houston property that demonstrates its potential to generate strong returns.

As real estate investors, we know how challenging the market for furnished rentals has become. That’s why strategies like co-living, which optimize cash flow while solving real problems like affordable housing, are so exciting.

Let’s dive in.

What is Co-Living?

Co-living transforms single-family homes into shared rental spaces, where individual rooms are rented to tenants who share common areas, such as kitchens and living rooms. Platforms like PadSplit simplify the management of co-living properties by providing tools for tenant screening, rent collection, and support. I interviewed the General Manager about their platform model and found it to be a particularly interesting niche.

For renters, co-living provides affordability and flexibility. For investors, it offers:

  • Higher Cash Flow: Renting individual rooms generates more revenue than leasing the whole property.

  • Lower Vacancy Risk: Multiple tenants reduce the impact of a single vacancy.

  • Easier Management: Unlike short-term rentals (STRs), co-living eliminates the need for nightly turnover, constant guest communication, and frequent cleaning schedules, making it a simpler and more passive investment model.

  • Growing Demand: Rising housing costs make affordable, furnished rentals highly desirable.

Why Consider Co-Living?

Co-living addresses a real need in today’s housing market—affordable and flexible living arrangements. It’s particularly effective in areas with growing populations and rising rental demand. Here’s why it works:

  • Maximizes Rental Income: Renting out rooms individually yields higher income than traditional leases.

  • Affordable Entry: Many properties can be converted into co-living spaces with minimal renovation.

  • Easier Operations: With long-term tenants, co-living properties require significantly less management than short-term rental properties, saving both time and operational costs, making it a more passive income model.

  • Consistent Demand: Affordable rental options appeal to a wide tenant base, including students, young professionals, and remote workers.

Ready to explore how co-living works? Learn more about PadSplit, the premier platform for co-living management and marketing.

Room Rental Case Study: 13363 Oak Leaf Ln, Houston, TX

The Property (active listing example only)

  • Address: 13363 Oak Leaf Ln, Houston, TX

  • Size: 3,474 sq ft

  • Current Layout: 4 bedrooms, 4 bathrooms

  • Potential: Convert into a 6-bedroom co-living property with minor renovations.

This property’s layout and square footage make it an excellent candidate for co-living. By reconfiguring underutilized spaces like formal living or dining areas, two additional bedrooms can be added, significantly increasing its rental potential. See the listing.

Financial Analysis: Unlocking the Numbers

Property Details and Acquisition Costs

  • Purchase Price: $329,900

Renovation and Furnishing Budget

  • Renovation Costs: $30,000 (adding two bedrooms and optimizing shared spaces)

  • Furnishing Costs: $20,000 (to fully furnish all bedrooms and common areas with basic furnishings)

  • Total Renovation & Furnishing: $50,000

Total Investment

  • Acquisition Costs: $329,900

  • Renovation & Furnishing: $50,000

  • Total Investment: $379,900

Rental Income Potential

Based on Houston market data provided by PadSplit, utilizing their data tool that offers real-time room rental comparisons from active listings in this zip code:

  • Rent per Room: $800/month (conservative estimate)

  • Total Rooms: 6

  • Monthly Gross Income: 6 rooms x $800 = $4,800

  • Annual Gross Income: $4,800 x 12 months = $57,600

Return on Investment

  • Gross Rental Yield: ($57,600 ÷ $379,900) x 100 ≈ 15.2%

This yield far outpaces traditional rental models and even many short-term rentals, making co-living a compelling investment strategy to consider.

Why This Property Stands Out

  1. Market Demand: Houston’s rental market thrives on affordable housing, making co-living a highly desirable option.

  2. Scalability: Adding two bedrooms transforms the property’s earning potential with minimal cost.

  3. Easier Management: With long-term tenants, co-living eliminates the labor-intensive nightly turnover, frequent cleaning, and guest communication required in STR management.

  4. Community Value: Co-living addresses a real housing need, providing tenants with affordable, quality living spaces.

Thinking Outside the Box

The furnished rental market has become more competitive, requiring investors to think creatively. Co-living is a perfect example of a win-win approach that optimizes cash flow while solving the growing need for affordable housing.

This case study of 13363 Oak Leaf Ln demonstrates how a small investment in renovation and furnishings can transform a property into a high-yielding asset. With a gross rental yield potential of over 15% and simpler management compared to STRs, co-living offers a smart way to adapt to today’s challenges and position your portfolio for success.

Ready to get started and explore the possiblities? PadSplit is the premier platform for marketing and managing co-living room rentals. They streamline operations, from tenant screening to rent collection, ensuring a smooth and efficient process for investors. Explore a “more passive” furnished rental ROI strategy.

Explore the property: 13363 Oak Leaf Ln, Houston, TX

Final Thoughts

Co-living isn’t just about maximizing returns—it’s a socially responsible investment that solves a real housing problem. By providing affordable, long-term housing with less intensive management than STRs, co-living offers both financial rewards and operational simplicity.

PadSplit makes it easy to take the leap and is worth exploring. Whether you’re a seasoned investor or exploring your first co-living opportunity, partnering with PadSplit ensures you’re equipped for success. Start your co-living journey today.

Additional Co-Living Resource Links To Explore:

🌺 Hawaii’s vacation rental market is feeling the chill. December saw a significant drop in demand, with occupancy rates sliding 16% compared to the previous year. Industry experts link this to higher costs, stricter regulations, and changing traveler preferences, signaling a challenging season for Hawaii's short-term rental scene. Learn more about the changes. Hawaii rentals

🏛️ Greece cracks down on Airbnb rentals to address housing shortages. The government has banned thousands of illegal short-term rental listings, aiming to ease housing pressure on locals. As this regulatory wave spreads, it's a wake-up call for other markets grappling with the balance of tourism and community needs. Read on Airbnb Greece

🔥 Airbnb steps up in Los Angeles’ wildfire crisis. Offering free temporary housing for those displaced, the platform has committed to providing shelter for an additional 25,000 people. This initiative highlights the growing role of STRs in emergency relief during climate-driven disasters. Read how they’re helping. Emergency housing

✈️ Sleep in a 1950s airplane turned Airbnb, now a viral hit. This quirky Washington State listing has taken off as a bucket-list sensation, blending nostalgia with adventure. Travelers are flocking to book this truly unique stay, proving that the novelty factor in STRs is alive and well. Take a look Airbnb plane

🏝️ Croatia’s coastline is calling, and Airbnb’s finest are waiting. From dreamy villas to coastal hideaways, this list showcases the best rentals Croatia has to offer. Perfect for summer escapes, these properties are a testament to the region’s growing allure for global travelers. Explore the top spots. Croatia stays

🌟 Palm Coast introduces new vacation rental regulations. The Florida city is tightening rules on STR properties to address resident concerns over noise and safety. These changes reflect a broader trend of cities reevaluating the impact of short-term rentals on their communities. See the latest. Vacation rules

🎿 Park City ski patrol averts strike with landmark deal. In a move welcomed by visitors and workers alike, the union and Vail Resorts finalized an agreement just in time for peak ski season. This resolution ensures continued safety and smooth operations on the slopes. Dive deeper. Ski patrol deal.

🏔️ The business of skiing faces fresh labor challenges. A closer look at Park City’s ski patrol dispute reveals broader issues for the industry, including worker retention and wage disputes. With ski resorts dependent on these frontline workers, the stakes for harmonious resolutions have never been higher. Read insights. Ski industry.

🧘 Wellness travel takes off, reshaping global tourism. Travelers are spending more on mindfulness retreats and health-focused experiences, with industry reports showing a 22% annual growth. From eco-resorts to urban sanctuaries, this trend highlights a shift toward holistic vacationing. Learn the key insights. Wellness travel.

💵 Wellness travelers spend big—and want more value. Today’s health-conscious globetrotters are looking for luxury experiences that balance indulgence with self-care. Spa retreats and fitness-focused getaways dominate their wishlists, setting a high bar for the industry to deliver. See what’s trending. Travelers' preferences.

📉 A surprising jobs report shakes up Federal Reserve expectations. Strong employment numbers have jolted predictions about rate cuts, leaving markets braced for prolonged high interest rates. The ripple effects could extend to housing and broader economic conditions. Get the details. Jobs impact.

💡 Jeremy Grantham warns of market turbulence ahead. The investing guru cautions that rising stock market risks could lead to a crash, urging a focus on long-term resilience. Grantham’s strategies emphasize sustainability amidst growing economic uncertainties. Learn his approach. Market outlook.

✈️ There’s more than one way to embrace the digital nomad life. From slow travel to immersive cultural experiences, today’s remote workers are finding creative ways to balance productivity with adventure. This evolving lifestyle continues to reshape global travel norms. Explore the trend. Digital nomads.

This Week’s Key Housing Highlights:

  • Mortgage Rates: The average 30-year fixed-rate mortgage increased to 6.93%, marking the highest level since July.

  • Housing Inventory: Active listings decreased to 1.2 million, reflecting a 7.7% year-over-year decline, indicating a continued shortage in housing supply.

  • Pending Home Sales: The index rose to 105.4, a 1.2-point increase from the prior period, though it remains 2.3% lower than the same period last year, suggesting a modest rebound in buyer activity.

  • Average Days on Market: Homes are staying on the market longer, with an average of 45 days, up by 5 days year-over-year, indicating a potential slowdown in buyer urgency.

  • Weekly Rent Trends: Median rent increased to $1,850, a 3.5% rise from the previous year, continuing the trend of rising rental costs.

  • Foreclosure Activity: There were 3,200 foreclosure filings, a 6.7% increase year-over-year, which may warrant monitoring for potential market stress.