Episode 253 - Turning a Small Investment into High-Yield Real Estate Returns with David Edwards

2025-08-13

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 ...

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