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nozzery t1_j6objqh wrote

Reply to comment by UltimatePlayer3301 in Is it feasible to buy a house with 3 friends for my 4 years in college (or maybe longer)? by UltimatePlayer3301

It's doable, *if everything goes perfectly*. Which it won't. One of you will become a deadbeat. One of you will get injured. One of you will have to drop out. You just never know what could possibly happen. It's not worth the risk for something you know you're going to sell in 4 years, and tie yourself to 3 other people you're fully expecting to walk away from in 4 years.

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Never get into a situation where you need everything to go right in order to make it work.

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UltimatePlayer3301 OP t1_j6oez1g wrote

What if I found a situation where the numbers work that 2 people would be able to cover the cost, but we still use 4 people equally 25% each? In your opinion, would that work?

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nozzery t1_j6ofeq6 wrote

Are you willing to bet your house on 2 of your friends having their finances 100% in order until you decide to sell? I wouldn't. Look at how much you're coming out ahead over a rental. Then decide if that amount is worth the risk you're taking. It's your call, but you'll also be left holding the bag if it doesn't go the way you planned.

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tutorquestion90 t1_j6ofqf2 wrote

You’re taking a big risk that everyone will contribute.

Also a rule of thumb is that you’ll lose money if you don’t keep it for 5 year’s minimum.

There’s also closing costs and all that too.

What if you get a roof leak and you need to hire someone? Do you want to go through that? Water heater breaks, furnace goes out. Anything.

One of you will have to sign the paperwork. Everyone else could bail and that person is stuck holding the bucket.

It’s a huge risk. Just rent during this time

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badchad65 t1_j6oiea7 wrote

I think the number of people still complicates things.

What happens if one of the 4 people pays in for three years the leaves? Do they get equity? How much? What about repairs? What if the roof needs replacing or the hot water tank or AC goes? Who pays when someone punches a hole in the wall? Should the two people that "pay in" get more equity? They are the ones taking the risk.

Given home prices are at an all time high, what happens if the property takes a loss after 4 years? What if someone doesn't want to sell at the end of 4 years?

As everyone else has said, this is not a great idea.

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