For years, Selena Lounds, a lifelong New Yorker, had been paying staggering amounts in rent every month—thousands of dollars that seemed to vanish into thin air without contributing to any long-term security or equity. Eventually, she began to question the practicality of continuing along that path. Owning a home, though initially daunting, appeared to be a far more financially prudent decision. However, despite recognizing the potential benefits of homeownership, Lounds remained hesitant. The thought of purchasing a property entirely on her own filled her with apprehension. She feared both the financial risk and the emotional pressure of possibly making an irreversible mistake without external support or a partner to consult.
By 2021, Lounds had established herself professionally enough to accumulate additional disposable income, paving the way for her first significant investment. Yet being a single woman, she grappled with the anxiety of managing a large financial obligation in isolation. As luck would have it, one of her close friends, Wade Jensen, happened to be exploring real estate investment opportunities during that same period. Recognizing their shared ambitions and compatible financial goals, the pair decided to join forces. Together they embarked on the challenging but exciting journey of purchasing a property as co-investors.
After several months of research, property tours, and negotiations, their shared commitment culminated in the purchase of a 2,100-square-foot home in upstate New York in 2022. To formalize their partnership, they created a limited liability company (LLC) and divided all expenses equally. The property, a spacious three-bedroom, three-bathroom residence, was transformed into a short-term rental listed on Airbnb. The venture quickly proved successful, generating over $90,000 in revenue since May 2023. Their approach has been methodical and forward-thinking: rather than pocketing the profits, they have consistently reinvested every dollar into improving the home’s condition, thereby increasing its long-term value. As Lounds explained, they view the property as a durable financial asset that will likely appreciate over time.
From her experience, Lounds shared her insights on the advantages and pitfalls of purchasing property with a friend. She emphasized the importance of clear communication and formal agreements, particularly when it comes to managing renovation costs, delegating maintenance responsibilities, and making strategic decisions about the property’s future. One of the most reassuring aspects of co-buying, she observed, is how it reduces the intimidation factor associated with first-time homeownership. For buyers entering the market alone, the process can feel overwhelming: qualifying for a mortgage, saving for a substantial down payment, handling unforeseen costs, and maintaining financial stability through career changes all demand resilience and planning. By contrast, splitting these burdens with another responsible party can create a sense of security and shared accountability.
Establishing the LLC not only helped Lounds and Jensen divide ownership and financing equitably but also provided an essential layer of legal and financial protection. Both of their names appear on the mortgage, and their joint ownership offers reassurance that neither bears the entire burden independently. In the event that something goes wrong—whether a guest sustains an injury on the premises or they encounter difficulties in meeting mortgage payments—the LLC structure shields each partner’s personal income and assets. This safeguard, Lounds explained, gave her the confidence to take calculated risks and make informed, growth-oriented decisions.
The partnership’s success ultimately emboldened her to pursue an individual real estate venture. Recently, Lounds purchased a four-bedroom, two-bath, 1,600-square-foot property on her own and is already considering expanding her holdings in the near future.
Still, co-owning property is not without its complexities. Because Lounds and Jensen share equal ownership, all major decisions—from renovations to pricing strategies—require mutual agreement. Early on, they drafted a detailed operating agreement that continues to guide their collaboration. The document outlines every critical scenario, including occupancy rules and procedures for eventual sale. Since the upstate house functions as both an Airbnb rental and a business asset, neither partner resides there full time. Should they later decide to sell, they have predetermined options: to list the property jointly or for one partner to buy out the other’s share under fair terms. Lounds firmly believes that such a clearly written framework is essential to preserving trust and preventing potential conflicts down the line.
Another clear advantage of co-buying, she noted, is the straightforward ability to divide expenses. Unexpected costs, such as repairs to crucial infrastructure systems or appliance replacements, can easily strain a single homeowner’s finances. For instance, when an air conditioning unit fails or a significant upgrade is required, the total bill can be daunting. Having a partner to share not only these expenses but also the decision-making process transforms what could feel like a solitary burden into a manageable collaboration. The partners follow a simple system: purchases or repairs below $500, such as new fixtures or faucets, can be made independently, while more significant investments demand mutual consultation and consent.
Their cooperative approach extends beyond costs to include earnings as well. The duo divides the Airbnb profits evenly, reflecting their shared contributions to the project. Since launching the rental, they have hosted over thirty separate stays, maintaining an average nightly rate of roughly $300. As of 2025, revenue has surpassed $29,000, with additional income expected from peak holiday bookings, like Christmas and New Year’s Eve, adding just over $3,000. For Lounds, this steady income stream demonstrates not only the property’s profitability but also the potential for sustainable, long-term returns through thoughtful management.
The creative aspects of property ownership also reveal both the rewards and challenges of collaboration. Because both Lounds and Jensen come from design-oriented backgrounds, they approach aesthetic decisions with strong personal visions. As a result, they often deliberate extensively over furniture, color palettes, and the overall ambiance they wish to project to guests. Disagreements are inevitable, she admitted, but such conversations are crucial in ensuring that the final result aligns with their shared brand and appeal. A notable example was their decision to install a hot tub—a significant enhancement intended to attract more Airbnb guests. Before making the purchase, they carefully weighed financial considerations, logistical planning, and the physical modifications required, including the addition of a concrete base. This single decision took years of discussion and reflection, illustrating how patience and negotiation underpin their partnership’s success.
Operationally, both owners take an active role in managing the property. Lounds oversees guest communications and coordinates automated messages to ensure a professional, consistent experience, while she and Jensen jointly manage check-ins and respond to inquiries during guests’ stays. Jensen, for his part, handles several utility accounts and shares in seasonal maintenance projects such as gardening and spring cleaning. Together, they also hire professional cleaners and lawn services to maintain the property’s long-term appeal and condition, ensuring the Airbnb’s reputation remains strong.
Through careful planning, transparent communication, and balanced division of labor, Lounds and Jensen have turned their shared investment into a flourishing enterprise. Their story illustrates how two friends—with mutual respect, foresight, and accountability—can successfully navigate the complexities of real estate and use co-ownership not only as a financial strategy but also as a foundation for personal growth and confidence in future independent ventures.
Sourse: https://www.businessinsider.com/bought-home-with-friend-coinvesting-real-estate-pros-cons-2025-12
