25k for 12 bedrooms. I’d love to open a coliving space in this building. But is it worth it at a near zero profit margin?
Here is the link: http://www.120-10th.com/
I’m happy that “coliving” is gaining speed. To me coliving should provide:
– lower prices, and/or flexibility, so greater access
– smaller spaces but more community
Building a model around existing spaces in SF is difficult because demand and rent are so high. Campus Houses was the master tenant for ~30 large houses in Bay Area–I lived in one for a month–and the community was amazing, but unfortunately the overhead was too high to make the model work and they closed down, giving up all the houses.
I built a simple model for the space at 120 10th St., link at the bottom.
I suggest in the model that each bedroom would cost a renter 3k per month. Here is a building nearby that charges similar for their studios, it’s for students and interns only http://www.panoramiclivingsf.com
Included in the price would be the standard coliving amenities:
– month-to-month leases
– fully furnished rooms and community areas
– weekly room cleanings
– free drinks and snacks
– community network and events
Unfortunately, even at this price (2500 sounds more reasonable to me), the math does not result in a very profitable business. At best it floats around break even.
**So I’m asking myself, is it worth it at breakeven?
– The space might be a nice center piece / proof of concept for building a coliving company
– It provides 12 flexible beds in SF
– It doesn’t generate cash
– Airbnbing the space or acting as a small 300/night hotel would likely make more money, or a group of friends could just rent it together