Buying a house with friends: 9 tips for success

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Pacaso’s Editorial Team
June 5, 2025
Friends looking for second homes together online.
Interested in splitting the cost and responsibilities of vacation home ownership? Buying a house with a friend offers a more affordable path to owning a second home. It may also put more luxurious properties within your reach. 
But co-owning a home isn’t without challenges. From aligning on finances and usage to navigating legal logistics, this guide covers considerations to think through before making a purchase and tips to make shared ownership successful.

1. Understand the benefits and risks 

Buying a house with friends involves more than just shared costs. You're also sharing responsibilities and potential risks. Before you move forward, it’s important to weigh the pros and cons.
Pros Cons 
Splits the purchase price and ongoing costsPotential for disagreements over money or usage
Makes luxury homes with ideal locations more accessible You may not align with what you’re looking for in a vacation home
Shared responsibility for upkeep and maintenance One owner’s financial challenges can affect others 
More frequent use compared to solo ownershipComplicated scheduling, especially around holidays
Emotional and social benefits of vacationing togetherLegal and financial ties can strain personal relationships
Co-owning a vacation home can make ownership more affordable and give you access to better properties. It also offers the chance to enjoy the space with people you care about. But it adds complexity, especially if co-owners differ on finances, usage or future plans. If you and your friend decide the benefits outweigh the drawbacks, co-owning a vacation home could be smart. If not, Pacaso can help you find vetted co-owners who may be a better fit. 
Friends discussing their goals around vacation home co-ownership.

2. Align on goals 

When buying a vacation home with friends, ensure all would-be owners have the same goals. Everyone should agree on where to buy the vacation home, home type, budget and luxury amenities. Take time to create a combined wish list that considers everyone’s preferences.Some questions to discuss include:
  • What’s the preferred architectural style?
  • How far from the beach/ski hill/downtown are we willing to be?
  • Do we want to rent the home when none of us use it to generate income?
  • How many bedrooms and bathrooms do we need?
  • Are there non-negotiable features, like a pool, garage or outdoor space?
  • What type of neighborhood or community vibe are we looking for?
Make sure to iron out these big decisions before you begin your home search. It’s important to go into home shopping with a clear set of criteria. And remember: Everyone will need to make compromises to keep the process moving forward. During this process, consider whether you’re interested in buying internationally. Pacaso offers luxury vacation homes in beautiful destinations worldwide, which can help expand your options.
Friends reviewing finances together. 

3. Evaluate finances 

Many people are uncomfortable discussing money with those outside their immediate family, but it’s an absolute must if you’re considering investing in property with friends. Sit down with all potential owners to discuss the ideal purchase price, down payment size and credit scores. You’ll also want to ensure that everyone can afford a second home, not only for the initial purchase but also to cover ongoing costs and monthly mortgage payments for years to come.  

4. Discuss expectations 

Take the time to discuss the hard questions about home usage and how you'll handle tricky situations if they arise. Clear expectations up front can prevent misunderstandings later.Here are a few questions to get you started:
  • How will we manage scheduling? Who gets to use the home on holidays and school breaks?
  • What if one owner uses the home more than the others?
  • Will we allow owners to bring guests?
  • Will we allow pets?
  • What will we do if one owner wants to sell or can no longer afford the home?
  • How will we decide when to complete maintenance?
  • How will we handle unexpected repairs or emergencies?
  • What’s the process if there's a disagreement or conflict?
  • Will we set rules for upgrades or changes to the property (e.g., furnishings, renovations)?

5. Divide responsibilities 

Buying a holiday home — especially in another city, state or country from your primary residence — is a lot of work. Luckily, owning a home with friends means you can share the responsibilities.Before purchasing, make plans for who will take care of specific tasks. You might assign one person to take care of paying the bills, like the mortgage, utility bills and insurance. In contrast, someone else might oversee vendors like house cleaners, landscapers or property managers. Considering renting out the home? You might assign one person to oversee this portion of the work. 
Pro tip: Consider setting up a shared calendar, group chat or task management app to keep everything organized. You might also schedule quarterly check-ins to review finances, maintenance needs and upcoming use of the home. This helps prevent miscommunication and keeps all co-owners aligned in the long term.
Friends reviewing a vacation home co-ownership agreement. 

6. Create a co-ownership agreement

Protecting yourself legally is essential before buying an investment property with a friend. Hiring a real estate attorney may require time and money, but it’s worth the investment. A lawyer can draft a co-ownership agreement to ensure all parties are legally protected.
What is a co-ownership agreement? 
A co-ownership agreement is a legal document that defines each owner’s rights, responsibilities, and financial obligations. It should also specify the ownership structure, either tenancy in common, which allows for unequal ownership shares, or joint tenancy, where all parties hold equal stakes and the share passes to surviving owners if one person dies.
Beyond ownership shares, your agreement can also cover the creation of an LLC, set aside funds for ongoing maintenance and spell out what happens in the event of a death, divorce or disagreement.  

7. Find the right home 

Now comes the fun part: house shopping! Hire a real estate agent with experience in your target market and vacation home co-ownership. Provide your agent with your predetermined wish list and find a time when all parties can travel to the destination to tour homes in person. After each showing, have an open conversation about pros and cons to narrow the options. Remember to pack your patience. Finding a property that fits everyone’s wants and needs may take some time. 
Woman texting friend about their vacation home. 

8. Keep lines of communication open

Communication among owners shouldn’t end as soon as you receive the keys. Shared vacation home ownership is an ongoing responsibility. Stay in contact with your co-owners so you can decide on things like vacation dates, maintenance needs and home improvements. And don’t forget the fun stuff. Be sure to share tips and tricks with your co-owners, whether that’s the great new restaurant they won’t want to miss or a local hiking trail you discovered on your last visit. 

9. Consider managed co-ownership

Owning a vacation home with friends comes with responsibilities like coordinating maintenance and keeping track of bills. Managed co-ownership offers a streamlined alternative by placing those tasks in the hands of professionals.
What is managed co-ownership? 
Managed co-ownership is a professionally supported model of shared homeownership. Instead of dividing up responsibilities among co-owners, a management company takes care of maintenance, bill payments, vendor relationships and other logistics. 
Pacaso simplifies co-ownership with full-service management. A dedicated home manager handles everything from routine upkeep to billing and vendor coordination. This hands-on support removes many of the hassles of shared ownership, so you and your co-owners can focus on enjoying your time at home.
A flow chart determining whether or not you are ready to buy a home with a friend.

Skip the stress with fully managed co-ownership

Buying a house with a friend isn't always simple. That's where Pacaso comes in.Pacaso makes it easy to co-own a luxury second home—without the hassle. We match you with vetted co-owners, create a co-ownership agreement and LLC, and handle everything from property management to home design and maintenance. All you have to do is arrive, unpack and enjoy your professionally furnished vacation home.You’ll find Pacaso homes in swoon-worthy destinations, from California Wine Country and Colorado ski towns to international locations like Cabo and Paris.

Buying a vacation home with friends FAQ

01: Is it a good idea to buy property with friends?

Buying property with friends can make ownership more affordable, but it works best when everyone aligns on goals and puts a legal agreement in place. Skipping these steps can lead to conflict, strain your friendship and make co-owning a home more stressful than rewarding.

02: Where should I buy a vacation home?

Choose a location you’ll enjoy visiting often and that fits your lifestyle. Consider accessibility, rental potential and year-round appeal. It’s also smart to research local real estate trends and ownership laws before committing.

03: Is buying a vacation home a good investment?

Buying a vacation home can be a good investment if the property appreciates in value and offers rental income potential. Weigh your financial goals and how often you’ll use the home before deciding.

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