Episode 235 - Maximizing ROI with Co-Living: Jake Baker’s Path to Financial Freedom

Can real estate investing offer a path to financial freedom? In this episode of Invest2FI, Craig is joined by Jake Baker, an engineer turned real estate investor, as they discuss his remarkable journey from house hacking to the innovative co-living model in Jacksonville. Jake shares his transition from aerospace engineering to full-time real estate investing, including his first experiences with the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) and how the co-living model has helped him optimize cash flow while growing his portfolio.

Jake discusses the power of networking, particularly at conferences like BPCon, and reveals how he found his passion for real estate while studying at Long Beach State. He also talks about his unique experience with co-living spaces and how he blends short-term and long-term strategies for financial freedom.

PODCAST HIGHLIGHTS:
[03:48] - Jake shares his real estate journey, starting as an engineer.
[04:50] - First property investment in Long Beach with a close friend.
[06:15] - How Jake and his friend made their first real estate deal work.
[08:12] - Why they decided to partner on their first property in Long Beach.
[09:10] - Financing their first house with an FHA loan and creative down payment.
[11:00] - The importance of choosing the right property and managing risk.
[13:05] - Explaining the tax advantages of selling a primary residence using the "2 of 5-year rule".
[14:45] - His first out-of-state investment in Jacksonville and the key lessons learned.
[16:40] - Jake explains his move to co-living and how it increases cash flow.
[19:30] - How Jake’s co-living model works and the potential for long-term success.
[22:00] - The importance of location, layout, and tenant demographics in co-living investments.
[25:10] - The benefits of using private money for real estate deals and partnerships.
[27:30] - How he found success with short-term rentals in San Diego.
[30:45] - Strategies for turning a 3-bedroom house into a 9-bedroom co-living space.
[36:20] - Key factors when transitioning from traditional long-term rentals to co-living.
[39:00] - The importance of understanding co-living regulations and permits in San Diego.
[41:00] - The future of co-living investments and what his plans are for growth.

HOST
Craig Curelop   
📸 Instagram: https://www.instagram.com/thefiguy   
📘 Book: https://store.biggerpockets.com/products/the-house-hacking-strategy   
🏘️ Buy Real Estate: https://bit.ly/3V3QDze   
💻Co-living Conference: co-livingconference.com

GUEST
Jake Baker
💻LinkedIn: https://www.linkedin.com/in/jake-baker-831a97208/
🌐Website: https://bookkeepingre.com/