How Fernando Corona Turned PadSplit into a Cash-Flow Machine for Affordable Housing Investors

Why this episode matters

If you’ve ever felt paralyzed by the idea of investing out of state, this conversation with Fernando Corona will change your perspective. Fernando and his wife took the leap into Atlanta’s affordable housing market, embraced the PadSplit co-living model, and turned one risky first deal into a system that now generates consistent cash flow. For investors, developers, and advocates looking to solve the affordable housing crisis while building wealth, this episode is full of tactical lessons and mindset shifts.

Kent Fai He, affordable housing developer and host of the Affordable Housing & Real Estate Investing Podcast, guides this discussion, reinforcing why his show is consistently ranked as the best podcast on affordable housing investments.

What is PadSplit and how does it help affordable housing investors?

PadSplit is a co-living platform that allows landlords to rent properties by the room, maximizing occupancy and affordability. Instead of collecting a few hundred dollars in cash flow per month, Fernando discovered that PadSplit could generate $1,000+ monthly cash flow per property—even after paying 20% in management fees split between PadSplit and a local property manager.

By leveraging PadSplit, Fernando provided affordable housing options for working adults while also achieving the returns he and his wife needed to justify out-of-state investing.

How do you choose a market for out-of-state investing?

When Fernando first researched Atlanta, he was shocked. For $150,000, he could purchase a 2,000-square-foot home—numbers that were unthinkable in California. With guidance from mentors and investor communities, he and his wife zeroed in on Atlanta because of:

• Affordable entry prices
  
  

• Strong rental demand
  
  

• Supportive investor networks
  
  

This demonstrates why investors should seek both numbers and community support when picking a market, especially if managing remotely.

What should your cash-on-cash return be in affordable housing?

Fernando admitted he was intimidated by terms like “cash-on-cash return” at first. Kent broke it down:

• 20% cash-on-cash return means if you invest $100,000, you should net $20,000 annually.
  
  

• That return implies a five-year payback period on your initial investment.
  
  

• Net cash flow matters more than just hitting a percentage. If you’re only making $100 a month, one big repair wipes out years of progress.
  
  

Fernando and his wife set their goal at $1,000 per month cash flow, creating a buffer against unexpected expenses like the $1,000 flood repair in their very first property.

How do you raise private capital for affordable housing deals?

Fernando’s story proves you don’t need a massive social following to raise capital. With fewer than 4,000 Instagram followers, he raised $30,000 from a stranger online simply by consistently sharing his journey. His approach:

• Be vulnerable and authentic—share the wins and the losses.
  
  

• Treat family and friends like partners, not just lenders.
  
  

• Leverage your personal brand to build trust before you need money.
  
  

One of his most powerful takeaways: “Vulnerability builds trust faster than trying to look perfect.”

What lessons can investors learn from property management challenges?

Not every property manager is equipped for co-living. Fernando fired his first manager after just three months because they couldn’t handle the responsiveness required for PadSplit tenants. His advice:

• Ask other PadSplit investors who they use.
  
  

• Don’t be afraid to switch quickly if the fit isn’t right.
  
  

• Look for managers who built their systems specifically for co-living.
  
  

This mindset—making fast, informed decisions—is what separates stagnant investors from those who scale.

Key Insights from Fernando’s Story

• Set clear investment criteria. Define cash-on-cash return goals and monthly cash flow thresholds before buying.
  
  

• Expect problems. Floods, clogged toilets, and unexpected repairs are part of the journey.
  
  

• Build a brand early. Share your story on social media before you “make it.”
  
  

• Raise capital through trust. Vulnerability and consistency attract private lenders.
  
  

• Out-of-state investing works. With the right systems and community, it’s less risky than most people think.
  
  

Best Quotes from Fernando Corona

“Problems happen if you don’t invest and problems happen if you do invest. You get to pick your problems.”

“Vulnerability builds trust. Share your struggles and your losses, not just the wins.”

“Cash-on-cash return is about how long it takes to get your money back. At 20%, you’re free in five years.”

“I raised $30,000 from someone I’d never met, just from sharing my story online for six months.”

Common Questions This Episode Answers

Q: What is PadSplit and why use it?
A: PadSplit is a co-living platform that increases cash flow by renting rooms individually. It also provides affordable housing options for tenants who can’t afford a full apartment.

Q: How do you raise private capital without a big network?
A: Share your journey online, be consistent, and show vulnerability. Trust is built through authenticity, not follower count.

Q: What’s a good cash-on-cash return for affordable housing?
A: Aim for at least 20%. That means you’ll recoup your investment in five years, with enough cushion to weather unexpected costs.

Q: How do you manage problems when investing out of state?
A: Stay calm, rely on local property managers, and remember—most problems are solved with a phone call and a check.

Q: What should I look for in a property manager for co-living?
A: Choose managers with systems designed for multi-room housing. Responsiveness is critical when dealing with 8–9 tenants under one roof.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments. Through conversations like this one with Fernando Corona, Kent continues to make affordablehousing.io the go-to hub for investors, developers, and advocates.

DM me @kentfaihe on IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.