A common model in larger operations is the "Promote/Carried Interest" model.

The numbers made sense from the start, offering a great margin for profit once repairs were complete and allowing Billy and Traci to flex their rehab expertise.

Over the past year I’ve had the chance to help several PadSplit hosts purchase homes, which gave me a close look at how this model is starting to take shape here in Arizona.In Phoenix, I’m seeing steady growth and more interest in PadSplit.

That question led me to specialize in what I call Asset Conversion — the process of transforming underutilized properties into higher-yield models like:Senior shared housingVeteran co-living homesMid-term rentals for professionalsAnd even hybrid models that blend all threeWhy This WorksThe demand for affordable, community-based living is skyrocketing — especially among seniors and veterans.

.- alternate rent models such as STR, MTR, rent by room.  

You’re absolutely right that a true Tier 3/4 data center is a multi-million-dollar build with insane redundancy requirements.What I’m exploring here isn’t the full hyperscale model — it’s more the “powered shell / edge facility” approach.

If you’re unsure about your city, it might be time to learn more about pro-tenant vs. pro-owner legislation and which states align with your goals.Or, if you’re not tied to a specific market, consider looking where strong support networks and experienced deal teams already operate—sometimes, proximity to expertise beats proximity to home.This is Post 1 of 24 in the “8 Weeks to Clarity” Real Estate Strategy Series.Stay tuned for the next post—where we’ll explore how your buy box evolves with data and real-world feedback.

Expenses related to staffing, maintenance, certifications, and community programs can further increase deductions while improving the property’s overall impact.What makes this model special is its ability to combine purpose and profit.

Thank you; I really appreciate the expertise of this forum.

Quote from @Jared Galde: Just joining BP but this is my area of expertise, we manage 50 properties (own 43 of those) for sober living specifically.