After years of spending thousands of dollars a month on rent, longtime New Yorker Selena Lounds figured it would be more cost-effective to buy a home. But she still had reservations.
“I was scared to do it by myself and worried about making the wrong decision,” Lounds told Business Insider. By 2021, she had reached a point in her career where she had the extra money to invest. But as a single woman, her biggest concern was taking on a big financial commitment alone.
Fortunately, her friend Wade Jensen was also looking for an investment property around the same time. The pair decided to buy a home together.
After months of house hunting, they formed an LLC and bought a 2,100-square-foot home in upstate New York in 2022 for $565,000, splitting the costs evenly. They turned the three-bedroom, three-bathroom property into an Airbnb, which has brought in a little over $90,000 in revenue since May 2023.
“Whatever we earn, we put back into the house,” Lounds said. “We see the home as a long-term investment, especially since it will only continue to appreciate.”
Here are the pros and cons of investing in real estate with a friend, according to Lounds — from splitting renovation costs and property-management duties to compromising on big decisions.
Co-buying makes homeownership feel less intimidating
Going it alone as a first-time buyer can be daunting. You have to worry about qualifying for a loan, coming up with the full down payment, and keeping up with the mortgage if your employment changes.
Lounds said that co-buying the home with an LLC alleviated many of those concerns.
Courtesy of Selena Lounds
“Our names are both on the mortgage,” she said. “We split the down payment, and the LLC mainly helps protect us from legal and financial risk.” If an Airbnb guest is injured on the property, or if she and Jensen fall behind on the mortgage, the LLC helps shield their personal assets and income, Lounds added.
The success of their co-ownership ultimately gave her the confidence to buy on her own. This year, she purchased a four-bedroom, two-bath, 1,600-square-foot home and is considering adding another property in the coming year.
You have to compromise on big decisions
Lounds and Jensen have equal ownership of the home and consult each other before making major decisions about the property, guided by an operating agreement they drafted when they first purchased it.
Because the property is both an Airbnb and a business asset, they agreed that neither of them can live there full time. And when they decide to sell, they’ll either agree to list the home or have one person buy out the other’s share.
“You have to have some sort of operating agreement going into it,” Lounds said. “All of this is really clearly laid out in advance. It’s been a few years since we created it, but there are essential guidelines for how we would approach a sale.”
You’re not footing the bill alone
Having a partner to split the bills is one of the biggest advantages of co-buying.
“As a first-time homeowner, I didn’t realize what those capital expenses would entail, like if the air conditioner breaks,” she said. “I’m learning it now with my own place. These are big expenses, so having someone to share them with makes the load feel lighter.”
If she and Jensen need to buy or fix something under $500 — say, a new light fixture or faucet — they usually just go ahead without checking in. Larger-ticket items require a more extensive conversation.
Courtesy of Selena Lounds
The friends also split the income they earn from the Airbnb.
So far, they’ve hosted more than 30 stays. Their nightly rate fluctuates with demand, but the base rate is about $300 a night. In 2025 alone, the property has brought in about $29,023 in revenue — not including their Christmas and New Year’s Eve bookings, which will add another $3,168, Lounds said.
It can be challenging to agree on design choices
Co-owning a home does not mean Lounds and Jensen always see eye to eye, particularly on décor, which is why Lounds said they discuss each choice.
“Both Wade and I are designers and creative people, so being aligned on what we buy, how things look, and the overall vibe is actually really important,” she said.
The friends recently added a hot tub to the home, an upgrade Lounds hopes will make it more attractive to Airbnb guests. Before pulling the trigger, they had to weigh the costs, including installation, and plan for preparatory work, such as adding a concrete pad.
“It was a major conversation,” she said. “It took us a really long time. For about two to three years, I’ve been saying we need a hot tub. Meanwhile, we just got one. Sometimes it takes time to negotiate those things and to actually move the needle.”
You can split both management duties and daily upkeep
The friends share chores and manage the home. Lounds sets up automated messages for arriving guests, and she and Jensen check in on them during their stay. Jensen also pays for several of the utility bills he set up, and together they handle the spring cleaning and gardening.
They also hired a housekeeper and a lawn service to keep the property in good shape.
Axel Springer, Insider Inc.’s parent company, is an investor in Airbnb.
