Can you scale a co-living business without buying every property?

In this episode, Miller and Craig are joined by Dave Edwards, founder of CoLiving Operations, for a detailed breakdown of co-living arbitrage.

Instead of purchasing a property and taking on a mortgage, an arbitrage operator leases the home from its owner, receives permission to operate it as a co-living property, and rents the individual rooms. This can reduce the capital needed to get started while potentially producing stronger monthly cash flow.

Dave walks through his first co-living arbitrage deal: a six-bedroom property leased for $1,450 per month. He explains how he negotiated the agreement, paid for the setup and improvements, recovered his investment during the first year, and eventually sold his position in the lease.

The conversation also covers the realities and risks of this strategy, including vacancies, local regulations, renovation expenses, landlord communication, lease obligations, and the importance of having a clear exit clause.

In this episode:

• How co-living arbitrage works
• How to find motivated property owners
• The pitch that can make arbitrage attractive to landlords
• Residential versus commercial lease structures
• Why longer lease terms protect your investment
• Security deposits, furnishings, walls, and startup expenses
• Negotiating free rent during renovations
• Comparing arbitrage cash flow with ownership
• Protecting yourself with an exit clause
• Using arbitrage to test a new market
• Building trust that could lead to seller financing or ownership
• Deciding whether arbitrage or purchasing is right for you

Arbitrage may not provide appreciation, mortgage paydown, or the same tax advantages as ownership, but it can offer a faster and less capital-intensive way to build cash flow and operating experience.

Connect with Miller McSwain:
https://www.instagram.com/millermcswain

Connect with Craig Curelop:
https://www.instagram.com/craigcurelop

Connect with Dave Edwards:
https://www.instagram.com/djedwards83

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