Remodeling an Office Building for CoLiving

[Justin R.]

Hey Fellas. There seems to be a lot of vacant office space here in Phoenix and I was looking to acquire something and remodel it for CoLiving. The basic arrangement would be 20 bedrooms (each with their own bathroom), a large kitchen with multiple appliances, and a few common areas spread out over around 6000 sqft.

Do you think 300 to 400k would be a realistic budget to overhaul the place to luxury apartment standards?

[Lia Martinez]

It likely already exists in Phoenix, you just maybe have to do a little research. I would check on the zoning and group housing laws before making any moves. That is a big issue here in Denver and in many other cities, but everywhere is unique. 

On the management side, it's a good idea to start making friends with other people locally who work in community housing. As the density increases, more problems arise and adults turn into giant babies pointing fingers at the other ones. Chores, code of conduct, locks on doors, allotted kitchen and fridge space, common area rules, guest rules, etc all become very important. Higher expense on management, but higher returns. Millennials, who coliving appeals to,  like to live in city centers. But the recent retiree demographic for coliving is willing to live a little farther out (if shopping amenities are still walkable) and the the price point is lower. Building community with dinners, parties, and group outings also becomes vital.