Many renters assume that their first home needs to be a solo purchase, such as a starter condo or studio.

While buying a smaller space is a great way to enter homeownership, there’s a powerful wealth-building strategy that many overlook—what we half-jokingly call the “Costco Pack Home Hack” (because sometimes, buying in bulk pays off).

Why Buy Alone When You Can Buy Smarter?

In high-demand markets like San Francisco, single-family homes often attract intense bidding wars, driving up prices and making them unattainable for many buyers. Instead of stretching your budget to buy a condo or single-family home alone, consider teaming up with a friend or family member.

Pool your funds for the down payment and invest in a fixer-upper duplex, triplex, or fourplex—often for less than the cost of buying individual condo units or a single-family home.

The Multi-Family Investment Advantage

Lower Housing Costs: When you co-purchase a multi-unit property, you and your partner(s) can live in one unit while renting out the others. This significantly reduces your monthly expenses compared to a solo purchase.
Faster Appreciation: Multi-family or single family houses often appreciate faster than condos, especially when you make strategic renovations.
Equity Growth: Renovations and improvements can force appreciation, meaning your investment gains value more quickly. Additionally, your property will increase in equity through natural appreciation.
Potential Condo Conversion: Some multi-unit properties can be converted into condos down the line, offering an opportunity for major financial gains.

Pro Tip – Maximize Your House Hacking Strategy

You don’t have to choose between buying a multi-family property or house hacking—you can do both! Purchase a multi-family home with partners, then within your own unit, rent out extra rooms to further offset your mortgage.

House hacking is all about using rental income to reduce your housing costs. Whether through long-term roommates, short-term rentals, or a combination of both, this strategy makes homeownership more affordable and accelerates wealth-building while you live in your investment property.

The Numbers: Why This Works

For perspective, some duplexes in the San Francisco market have sold for less than $1 million. With a 10% down payment split between two buyers, the upfront cost is comparable to purchasing a one-bedroom condo solo. But instead of taking on the full financial burden yourself, you share costs and gain rental income, making the investment far more sustainable.

Long-Term Wealth Building

This strategy not only helps you enter homeownership more affordably but also builds equity faster, setting you up for long-term wealth. By the time you’re ready to move on, you could leverage the equity in your first property to invest in another, continuing to build financial stability through real estate.

Your first home isn’t meant to be your dream home—it’s your first step toward financial freedom. Consider thinking beyond a solo purchase and explore co-buying a multi-unit property. It might be the smartest financial move you ever make.