Owning an Airbnb with My Best Friend: The Ups and Downs of Real Estate Co-Investment

Selena Lounds, 46, felt hesitant about stepping into the world of homeownership alone. In 2022, she partnered with her best friend, Wade Jensen, to purchase a house in upstate New York. Lounds talks about the benefits and drawbacks of sharing a home investment, from dividing the bills to making sometimes difficult decisions together.

After years of paying hefty rent in New York, Selena Lounds came to the conclusion that purchasing a home might be more economical. However, she had her doubts. "I was nervous about doing it solo and feared making a poor choice," Lounds confessed. By 2021, she had reached a point in her career with additional funds ready for investment. Her main worry as a single woman was managing the significant financial responsibility by herself.

Luckily, Wade Jensen, a good friend, was also searching for an investment property during the same period. The two friends decided to pool their resources and buy a home together.

Collaborative Property Ownership Makes Home Buying Less Daunting

The process of buying a house for the first time can be overwhelming alone. You’re burdened with qualifying for loans, covering the entire down payment, and ensuring mortgage payments even if your job situation changes.

Lounds explained that teaming up with Jensen to purchase a home through an LLC alleviated many typical concerns. "We both share our names on the mortgage," she said. "By dividing the down payment and utilizing the LLC, we mitigate legal and financial risks." Whether it’s a liability issue with a guest on the property or troubles with the mortgage, the LLC protects their personal finances.

Encouraged by the success of this joint venture, Lounds bought her own property in the same year — a four-bed, two-bath residence — and is already considering expanding her investments.

Striking a Balance on Important Decisions

Lounds and Jensen share equal stakes in the house, and they never make major property-related decisions without consulting each other, based on a pre-drafted operating agreement.

Because the property serves as both an Airbnb and a business entity, they agreed neither can stay there permanently. When the time comes to sell, they’ll either mutually list the home or one can buy out the other’s share.

"It’s crucial to have a structured operating agreement," Lounds advises. "We meticulously defined our plan upfront, which helps navigate future sales discussions."

Shared Financial Responsibilities Lighten the Load

One substantial advantage of jointly buying a property is not shouldering expenses alone. "As a homeowner for the first time myself, I’m surprised by the unexpected costs, such as fixing an air conditioning unit," Lounds remarked. "Sharing these financial responsibilities makes them far more manageable."

Minor repairs or purchases beneath $500, like replacing a light fixture, don’t require a joint decision. However, costlier items prompt more intensive discussions.

The pair also divides any profit generated from their Airbnb operations. With over 30 bookings completed, their nightly rate adjusts with demand but generally rests around $300. For the first part of 2025, revenue amounted to $29,023, excluding holiday bookings.

Navigating Design Differences as Co-Owners

Owning a home together doesn’t mean always agreeing, particularly on stylistic aspects. Lounds and Jensen frequently discuss decor decisions. "Our creative sensibilities mean that aligning our tastes is vital," Lounds stated.

Their most recent venture, adding a hot tub, required substantial debate to ensure it appealed to Airbnb clientele, weighing cost, installation logistics, and necessary groundwork. "Some decisions took multiple years to realize," Lounds admitted.

Dividing Management and Maintenance Responsibilities

The duo shares upkeep tasks and manages daily operations. Lounds automates guest communications, and both monitor guest stays. Jensen handles several utility bill payments, while they jointly tackle seasonal cleaning and gardening duties.

Additionally, they contracted exterior services such as housekeeping and lawn care to maintain the property’s condition.