Padshare - Your Thoughts?

Question

Hi All, what are peoples thought on PADSPLIT?

My feeling is Airbnb is now bust but PADSPLIT could be an alternate.

Blake Lewis · Answer

@Mag Ma what market are you in? I'm happy to share about my experiences with PadSplit going back to 2019. I can connect you with others as well.

Mark Munson · Answer

Hi @Mag Ma

We have a number of investors we work with that use PadSplit and I'm tied into the PadSplit community here in FL, as we are vendors for them. It can be a good model if you have the right property with at least 6 bedrooms and good parking. Financing is a bit difficult because you are enclosing living rooms and other rooms sometimes, so it isn't necessarily conforming to the zoning. There are specific ways to go about financing them and certain lenders to use. You are forgoing the ability to refinance when rates come down if you now have, for example, a house that is 8 bedrooms but recorded with the county/city as 4 bedrooms and the other 4 can't be permitted. You'll have difficulty with a lender being okay with that, assuming lenders don't change their guidelines by the time rates drop. Overall, it should be a portion of your portfolio, as the cash flow outperforms rental income from a long-term tenant and MTRs.