I'm new to Padsplit as well and I don't own one yet and looking into develop my own.
I have attended plenty Padsplit events and talked to my Account Executive (AE) and some veterans from Padsplit (the real expert, not newer sales person), and some Padsplit investors who own them and love them.
To answer your questions quickly first:
1. Padsplit is simply a technology platform. View it as Airbnb. So the 14.75% (15%) is just their cut. If you hire a PM, usually from what I'm hearing, Padsplit PM charges about 8% and some just charge a $800 per month flat fee because it's relatively easy I guess. Keep in mind it's still new so the industry is trying to figure it out.
2. Yes it's recommended you put keylocks on each bedroom.
3. Padsplit gather tons of data so you can ask your AE to provide the Orlando market data to you so you can make a relevant decision.
Now we got your questions out of the way, here are my thoughts so far:
1. Hearing from many testimonials by talking to real Padsplit owners in person, it seems to be a true cashflow machine coming from a single family residence. One of the concerns would be, how long would this last until regulations catch on? Padsplit's answer is that no politician will attach the affordable housing industry because this is the only private solution to solve the housing crisis now. Obviously they are running against the zoning policies, always feel like doing something in the gray. Is it a stable long term strategy? I'm skeptical but I'm willing to test the water to something small first. My thought would be, if the city is okay with letting owners doing padsplit, why not just letting them rezone the property to multifamilies and build a multifamily apartment, which is a more legitimate solution.
2. Most padsplit properties give me the opposite impression of what an airbnb properties give you. They look rough on the exterior and most of them are located in the class C neighborhood. Needs to be in a rental area because no homeowner neighborhood would like to have tons of renters going in and out of a property. So for sure it's a cashflow play, but don't expect much on the appreciation side. It's probably something that rides on top of the inflation but not very likely to double or triple your initial investment opportunities for sure. I think it's a great strategy to replace the BRRRR strategy for entry level investors who need number of cash flowing property to replace their 9 to 5s.
3. Eviction experience is still similar to your SFR experience. Still have to pay attorney and fight it through court. Padsplit people try to sell you that it's only a small portion of your income (1 out of the 6-8 members) vs if you do long term, you are losing 1 of 1 income.
4. Refinancing game is tricky. They recommend owners to refinance it as a normal house (4 bed 2 bath). After inspection/appraisal is done, then you do the Padsplit conversion.
5. Just be aware of there are many Padsplit salesperson or Padsplit affiliate businesses that would love to grow rich out of Padsplit owners. So owners should talk more to owners to get real feedback.
6. I'm piloting a new construction program that's building a generational style home 6 bedroom 4 bathroom, 2500 sq ft house in a class B/C area. Our goal is to design/build a house that can legitimately be a big SFR or a Padsplit property. Number makes sense on paper but let's see how we perform at the beginning of next year.
