In this co-ownership case study, two single mothers sought to combine their resources and create a stable home environment for their children. They envisioned a shared living situation with separate units, childcare support, and potential rental income. By carefully addressing financial situations, childcare responsibilities, and even future partner considerations in their co-ownership agreement, they were able to enter the housing market with a clear roadmap for success.

Two Single Mothers

Step 1: The Purchasing Group

Two single mothers wanted to buy a property together. Each had one child. They saw co-purchasing as an opportunity for both of them to have access to a private home. In addition to shared equity and potential income, the agreement promised mutual support (child care), and an extended family.

Step 2: The Financing

One group member brought equity from a previous home sale. The other had a full-time job, but student debt. The home sale paid off the student loans. Equity was split 60/40, with the majority going to the member who provided the down payment from the sale of her previous property. The purchase price budget was $1 million.

Step 3: The Group Agreement

Each had their own separate unit. Dog care, child care, and tenant management were shared.

Step 4: The Legal Agreement

Among other things, they outlined the terms should a group member leave: If one left, the other had the right of first refusal. If new partners or roommates joined either of the single moms in the home, they would not have right to ownership—it would remain between the originators of the agreement.

Step 5: The Property

Areas with schools were a priority. They were able to purchase a triplex: equal, separate living space for both families, and a unit to rent to offset the mortgage.

By carefully assessing their needs and wants, these two women were able to form a shared idea of what their home would look like, and they were able to enter the housing market. They saw that purchasing a home together would build equity, and that there were also non-financial benefits of this arrangement, particularly for their children.

These co-purchasers assessed their financial portfolios and considered future scenarios. They were able to identify their mutual needs and compatibility prior to looking at any housing stock.

What’s in The Ultimate Introduction to Purchasing Co-Owned Real Estate?

1. Introduction to Co-ownership
2. The Benefits of Co-ownership
3. Getting in the Co-ownership Mindset
4. The Five Steps to Co-Owning Real Estate
5. Co-ownership In Action, Case Studies:
   1. The Golden Girls
   2. Multigenerational Magic
   3. The Single Moms Merger