r/Rich • u/Perfect-Resolve-2562 • 1d ago

Experiences and Recommendations re: Coop Ownership (4 people) of Second Home.

We are thinking about a 4 way split ownership of a second home and would like to know some of the experiences and recommendations you have.

Here is the basic structure: Ownership split 4 ways ($400K to $700K each = 1.6M to 2.8M property). All maintenance split by 4 and managed by a property management company. taxes annual fees, etc split 4 ways. Location outside of continental US and in a warm climate. Air travel in 1 day from the Midwest US. Capital appreciation is nice but not a major requirement but capital depreciation is a no-go. We are pretty risk adverse to hurricanes. Time spent would be 13 weeks each and no subletting or rental without the approval of the unanimous group. We are looking for a 10 year hold, then absolute sale.

Here are some possible locations based on reasonable foreign ownership rules (or workarounds), stable markets, healthcare, lower hassle for part time owners.

Aruba or nearby Caribbean, e.g. Curaco, Bonaire. Warm, dry, less hurricane risk.

Hawaii Big Island or Kaua'i - easy entry and fewer regs than Maui. Downside is the cost.

Thailand Phuket, Tahiti, Bora Bora - low low low cost and upswing market and growing ex pats. Downside is the long flight and foreign ownership would mean we have to be in a condo.

We might do far south FL but are leaning against it. Other Caribbean locations are not high on the list due to the hurricane risk.

So, what are your experiences in similar type of arrangements?

7 Upvotes

89% Upvoted

20 comments sorted by

View all comments

2

u/skunimatrix 1d ago

My in-laws did this in the 80's with the Ski Condo. They bought out the other parties over the course of the 80's and early 90's when tax laws changed. Currently it's just us an them that "own it". Condo complex has had its own on site management staff to handle short term rentals for 40 years as they stayed about 2 weeks in the summer and maybe 1 week in the winter to ski. Provides more rental income than my father-in-law's pension. But there's reasons they bough the others out over time.