Revolutionizing Housing: How Co-Living Is Tackling the Affordability Crisis with Mando Hernandez
Revolutionizing Housing: How Co-Living Is Tackling the Affordability Crisis with Mando Hernandez
The housing affordability crisis is a pressing issue faced by millions across the U.S. With rising rents and stagnant wages, many find it increasingly difficult to secure a decent place to live. Enter co-living—a creative, community-driven solution designed to address this challenge. In a recent episode of the REI Hacker Podcast, seasoned real estate investor Mando Hernandez shared his unique insights on the transformative power of co-living. With over 25 years of experience, Mando is paving the way for innovative housing models that not only solve affordability issues but also foster connection and community. Let’s explore how co-living is reshaping the housing landscape and why it’s a game-changer for today’s rental market. 🌟
What Is Co-Living, and Why Does It Work? 🤔
Co-living, often referred to as the "rent-by-room" model, is a shared housing solution that caters primarily to service workers and singles earning $30,000 to $60,000 annually. Mando describes it as a lifeline for those priced out of traditional apartments in expensive metro areas like New York City, Atlanta, and Dallas.
“Life has become so expensive. Salaries are not matching the cost of inflation,” Mando said. Co-living provides an affordable and convenient living option for individuals working in retail, hospitality, and other service industries. By transforming single-family homes or purpose-built spaces into shared living environments, co-living creates opportunities for people to live closer to their workplaces without breaking the bank.
But it’s not just about affordability—community is a key factor. Mando emphasizes that spaces designed for interaction, like shared kitchens and lounges, help tenants build connections and fight the isolation that often accompanies financial struggles. 🌐
Private Bathrooms: A Game-Changer in Co-Living Spaces 🚿
One of the most innovative features in Mando’s co-living properties is the inclusion of private bathrooms for each tenant. While traditional co-living models often involve shared bathrooms, Mando believes privacy is critical for tenant satisfaction and retention. “Imagine working hard all day and coming home to eight people sharing two bathrooms. It can feel chaotic,” he explained.
During a recent visit to a ground-up co-living project in Dallas, Mando discovered a 14-bedroom, 14-bathroom property specifically designed for co-living. This setup not only provides tenants with essential privacy but also encourages them to stay longer, improving occupancy rates for landlords. “Retention is higher when people have a nook they can call home,” Mando shared. 🌟
Financing Co-Living Properties: Challenges and Solutions 💰
While co-living offers incredible potential, financing these properties can be tricky. Traditional banks often struggle to understand the co-living business model, making it difficult to secure loans. Mando employs creative strategies, such as designing properties to look like traditional homes during the initial financing stage and completing specific conversions—like adding walls—after closing. This approach aligns with conventional lending practices while allowing the flexibility to adapt the property for co-living purposes.
“You have to position yourself the best way possible when dealing with lenders,” Mando explained. His ability to adapt to market shifts and navigate financial obstacles is an inspiring example for other investors. 📌
Building Community in Co-Living Spaces 🌐
For Mando, co-living isn’t just about providing a roof over someone’s head—it’s about creating a sense of belonging. He focuses on designing homes with open kitchens, communal spaces, and even inspirational artwork to foster a positive culture among tenants. “Sometimes isolation is just the beginning of the way downhill,” he said, highlighting the importance of building an environment where tenants can thrive emotionally and socially.
Mando also underscores the value of setting clear expectations during the onboarding process. “It’s important to create harmony and a sense of culture from the onset. If someone isn’t the right fit for the community, that’s okay—it’s better to find a solution that works for everyone,” he noted. 🌟
Lessons in Entrepreneurship: From Real Estate to a Clothing Brand 👕
In addition to his work in real estate, Mando recently launched a clothing brand, Investor Deli. Inspired by his artistic background and entrepreneurial spirit, the brand is a tribute to his New York roots and real estate journey. Initially started as a way to connect with podcast guests, the brand has grown into a thoughtful business offering hoodies, tote bags, and more.
“I wanted to create something synonymous with the real estate space,” Mando explained. His journey into the product space has been a learning experience, and he credits his success to embracing feedback and continually improving. “You have to take chances, face struggles, and grow from them,” he said. 💡
Breaking Free from the 9-to-5: A Personal Journey 🚂
Mando’s story is one of resilience and transformation. After spending over 20 years in the healthcare industry, he realized he was “conditioned” by the 9-to-5 lifestyle. Determined to break free, he began reconditioning his mindset through small, intentional steps—such as being the last person to leave his train car each morning.
“You have to take control of your life again,” Mando said. By separating himself from negative influences and focusing on personal growth, he paved the way for a successful transition into full-time real estate investing. 🛤️
Conclusion: Co-Living as a Solution for the Future 🌟
Mando Hernandez’s journey is a testament to the power of innovation, resilience, and community. Through co-living, he is addressing the housing affordability crisis while creating opportunities for connection and growth. His insights on financing, tenant retention, and community-building offer valuable lessons for anyone passionate about real estate or entrepreneurship.
What do you think about the co-living model? Could it be the solution we need to tackle the housing crisis? Share your thoughts in the comments below or connect with Mando directly to learn more about his work. You can find him at Investor Deli on YouTube and Instagram or visit his clothing store at investordeli.store. Let’s keep the conversation going! 🚀
PARTNERS FOR SUCCESSFUL REAL ESTATE JOURNEY!
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