Feb 10, 2026
Renting in New York City is expensive enough. For many New Yorkers, buying a home solo is simply out of reach.
That’s why Selena Lounds, 46, joined a growing number of singles pooling their money with friends to make their home ownership dreams come true.
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“I was scared to do it by myself and worried about making the wrong decision,” Lounds told Business Insider (1)
In 2022, she approached her long-time friend Wade Jensen and proposed co-buying a home. He’d been thinking about buying an investment property.
He embraced the idea. It turned what felt like an overwhelming personal risk into a shared, long-term plan.
They agreed they wanted a place in the picturesque Hudson Valley, and were drawn to Hudson itself — a beautiful community enjoying a renaissance.
How two friends made co-buying work
After months of searching, Lounds and Jensen bought a 2,100-square-foot, three-bedroom home there for $565,000.
They split the down payment and mortgage. From the start, the pair treated the home as a business, not a passion project.
They formed a limited liability company (LLC) to own the property, which limits the liability on both parties legally if something goes wrong, such as an injury on the property or a financial dispute.
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Lounds and Jensen drafted an agreement outlining how decisions would be made, income would be handled, and what would happen if one person wanted out.
They also agreed the property can’t be lived in full-time by either owner, and a future sale would require mutual agreement — or one partner buying out the other.
That clarity has helped them navigate the less glamorous parts of co-ownership, from maintenance costs to design disagreements.
Major upgrades, such as adding a hot tub, require years of discussion and cost-benefit analysis before they move forward.
They’ve seen some return on their investment. The Airbnb generated more than $35,000 in revenue in 2024.
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“Whatever we earn, we put back into the house,” Lounds told Business Insider. “We see the home as a long-term investment, especially since it will only continue to appreciate.”
What’s more, the experience gave Lounds the confidence to buy a home on her own and she’s considering adding a third property to her portfolio in the coming year.
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How to protect yourself if you're co-investing
Buying real estate with a friend can reduce financial strain, but it also introduces a number of risks that shouldn’t be underestimated.
Anyone considering a similar move should take steps to protect both the investment and their relationship.
Get everything in writing
A formal operating agreement isn’t optional. It should specify relative shares of ownership, how expenses and income are allocated, decision-making authority and exit strategies. Scenarios like marriage, job loss, relocation, or one person wanting to sell should be addressed upfront.
Separate business from friendship
Treat the property like a business asset, not a shared favor. Use dedicated bank accounts, track expenses and agree on spending thresholds that require joint approval. Clear boundaries can help prevent resentment, protecting both your friendship and your financial investment.
Communicate early and often
Regular check-ins matter, especially when the property is generating income or incurring unexpected costs. Disagreements over decor, upgrades, or pricing are easier to manage when expectations are discussed openly and early. Schedule meetings at regular intervals — monthly or quarterly, for example — to ensure you stay on the same page.
Understand the risk you’re sharing
Co-investing can lower individual exposure, but it doesn’t eliminate risk. Each partner is still tied to the mortgage, market conditions and their co-investor’s financial stability. Make sure both parties can afford the investment even during slow periods.
When it works, co-buying with a friend can be a powerful stepping stone into homeownership.
When it doesn’t, the fallout can cost more than money. Getting it right requires clear planning, strong contracts, and open communication.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Business Insider (1)
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
