Episode 253 - Turning a Small Investment into High-Yield Real Estate Returns with David Edwards
Description
How do you turn a seemingly bad investment into a profitable real estate venture? In this episode, Craig sits down with David Edwards, a Houston-based co-living operator, investor, and founder of CoLiving Operations. Dave shares how he left a shaky data analyst job to pursue real estate full time.
From his first $65K house in January 2020 (turned pink inside by accident) to converting dining rooms into bedrooms, Dave walks through his path to an 8-bedroom pad splits yielding $2K+ in monthly cash flow. Learn what it takes to thrive in Houston’s unique rental market, how to mitigate co-living risks, and how his 300+ doors under management started with one “stripper house.” If you're eyeing cash flow, shared housing, or white-glove turnkey co-living investing, this episode delivers unmatched ground-zero detail.
PODCAST HIGHLIGHTS:
[03:07 ] Dave shares why he left data analytics for real estate stability.
[04:52 ] Describes moving from New York to Kingwood in 2019.
[06:46 ] Purchases $65K rental property in January 2020, adds $20K rehab.
[09:10 ] Discovers tenant abandoned the house after claiming COVID multiple times.
[09:45 ] “First thing I see is a stripper pole”—Dave on entering home.
[14:30 ] Rehabs trashed house and sells it, learning hard lessons.
[16:45 ] Discusses April 2020 Kingwood flood-damaged flip yielding $40K profit.
[20:45 ] Converts 5-bed home into 8-bed 3-bath co-living rental.
[24:04 ] “I was cash flowing just shy of $2,000 a month.”
[26:35 ] Sells property subject-to in order to fund duplex development.
[33:23 ] Planning to build 10-bed 10-bath duplexes compliant with local laws.
[35:29 ] Explains arbitrage model using 5-year leases with exit clauses.
[39:00 ] Looks for properties with 60% parking and near public transit.
[41:50 ] Reviews 12 deals weekly but only 3 usually make the cut.
[43:45 ] “12–16% cash-on-cash is realistic—20% is rare in Houston.”
[45:00 ] Uses Airbnb-style insurance in Texas due to co-living challenges.
[46:20 ] “You don’t need to be perfect. Just start moving forward.”
[48:30 ] “I don’t want to disappoint my wife—that’s my why
HOST
Craig Curelop
📸 Instagram: https://www.instagram.com/thefiguy
📘 Book: https://store.biggerpockets.com/products/the-house-hacking-strategy
🏘️ Buy Real Estate: https://bit.ly/3V3QDze
GUEST
David Edwards
📱 Phone: (917) 482-5894 (text preferred)
👤 Facebook: https://www.facebook.com/djedwards83/
United States
