From Basement to Bungalow: Johnny Wolff on Scaling Co-Living for Investors
What happens when you combine a passion for real estate, a deep understanding of market inefficiencies, and the guts to empty your retirement account for a startup? You get Johnny Wolff—founder of HomeRoom, one of the fastest-growing co-living platforms in the country.
On this episode of the Showplace Podcast, Johnny joins Justin Miller to unpack his journey from bootstrapping out of his basement to leading a team of 50 and building a business that just got acquired by Bungalow.
What Is HomeRoom?
HomeRoom helps investors unlock more rental income by transforming single-family homes into co-living spaces—where each room is rented out individually to vetted tenants. Think long-term leases, high occupancy, and 50% more rent per property. “If we’re not getting 50% more rent, it’s probably not the right house,” Johnny shares.
Founded in 2018 in Kansas City, HomeRoom has since expanded across the Midwest and South, currently operating hundreds of properties.
Why Co-Living Works
Johnny breaks down the math: if a $500,000 home typically rents for $3,000/month, HomeRoom’s model targets $4,500/month—without needing a whole new property.
Compared to short-term rentals, co-living offers:
Longer lease terms (3–24 months)
Lower turnover costs
Less regulatory pressure
Higher yield without the hospitality overhead
The result? A scalable, recession-resistant model that makes real estate investing accessible—even in traditionally cash flow-negative markets.
Hot Markets for 2025
Looking for the best cities to invest in co-living? Johnny names his top three for this year:
Kansas City
Indianapolis
San Antonio
While HomeRoom has homes in higher-cost areas like Austin and Denver, they aim to make cash-flow-negative properties profitable through the co-living model.
Acquisition by Bungalow
In a major milestone, HomeRoom is being acquired by Bungalow, another major player in the co-living space. “It’s like going from a bumper car to a Tesla Plaid,” Johnny says about the transition. With Bungalow’s superior tech and backing, Johnny is excited to scale their shared mission: compliant, long-term, high-yield co-living.
From Bootstrap to Breakthrough
Johnny’s entrepreneurial path wasn’t easy. He bootstrapped for three years before joining Y Combinator—raising $5 million shortly after Demo Day. “I emptied my retirement account. I sold investment properties. I worked from my basement,” he recalls. The payoff? A growing team, national reach, and a successful acquisition.
His advice to aspiring founders: “You almost have to be compelled to start something. If it’s not keeping you up at night, it’s probably not the right idea.”
Real Estate Investing: Tactics vs. Strategy
Johnny offers a masterclass in thinking long-term about real estate:
Focus less on monthly cash flow and more on stacked returns (appreciation, debt paydown, tax advantages).
Don’t overreact to maintenance costs—real estate is a business, not a stock.
Choose markets based on future potential, not just today's yield.
“I made way more money in Austin on appreciation than I ever would chasing $400/month in cash flow,” he explains.
Final Thoughts: Co-Living as a Strategic Investment
Co-living isn’t just a trend—it’s a growing strategy for maximizing rental yield, reducing vacancy, and making the most of single-family homes in today’s real estate landscape. Platforms like HomeRoom and Bungalow are showing that renting by the room can deliver returns once thought possible only through short-term rentals—without the nightly turnover and regulatory headaches.
For investors, co-living represents a unique opportunity to access markets that may otherwise be out of reach from a cash flow perspective. By turning larger homes into multi-tenant rentals, it’s possible to transform negative or neutral cash flow into positive, compounding returns.
As with any investment, success comes from strategy. That means choosing the right market, understanding your goals (cash flow vs. appreciation), and working with partners who can help navigate operational complexity. Co-living won’t fit every investor—but for those looking to blend yield with long-term growth, it’s an increasingly smart play.
When done right, co-living isn’t just profitable. It’s sustainable, scalable, and shaping the future of residential real estate.