Program Overview
The PadSplit Loan Program
Unlock the potential of co-living with our specialized PadSplit financing solutions. Designed specifically for real estate investors looking to maximize yield through room-by-room rentals, this program provides the flexible capital needed to acquire or renovate properties specifically for the PadSplit marketplace.
Specialized PadSplit Lending Programs
Fix to Rent / Fix & Flip PadSplit Financing
Flexible DSCR Solutions
Up to 85% LTV on Acquisitions
Income Comparison
Comparing two different residential investment methods by gross income potential
Long-Term Rental (LTR)
Bedrooms
3
Tenants
1 Household
Monthly Rent: $2,500
PadSplit / Co-Living
Bedrooms
7
Tenants
Up to 7 Individuals
Rent per Room
$750
Total Monthly Rent: $5,250
Monthly PadSplit Surplus: +$2,750
We have solutions to this problem in a few different ways.
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1. Utilizing STR Qualifying Methods
2. Asset Depletion to Increase the DSCR
3. PadSplit Lender Programs with No DSCR Requirements
DSCR Qualifying Issues for Co-Living Income
DSCR can often become an issue for investors when qualifying for a PadSplit property. This is because most lenders are going to underwrite the projected rental income based off of LTR market rents regardless of the properties intended use.
Common Hurdles for PadSplit Investors
Navigating the co-living landscape requires specialized knowledge. While the yields are impressive, traditional lenders often struggle with these unique PadSplit investment challenges.
Lender Pushback on Space Conversions
Converting garages, basements, or dining rooms into functional bedrooms can trigger appraisal issues and lender concerns regarding the property's highest and best use.
We utilize our niche PadSplit lender contacts to navigate these situations for our investors to ensure a successful closing.
High Bedroom Count Lending Friction
Properties with 6+ bedrooms often fall outside most standard residential lender guidelines, frequently  resulting in loan denials.
We work with lenders that have no max bedroom count. Allowing us to close on PadSplit properties with bedrooms of 14+.
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Working with professionals that have the lender contacts to navigate almost any situation that comes along is crucial when owning a PadSplit/Co-Living Property.Â