Seeking Advice: Co-Ownership or Lease-Option Deal for High-Income Primary Residence

[Mia Davidson]

Hi BP Community, 

I’m helping a family member (high W-2 income, excellent credit, based in the Bay Area) explore creative paths to primary homeownership in a high-cost market (Menlo Park, CA).

They are fully capable of covering a mortgage in the $2.0M–$2.3M range, but like many, liquidity is the blocker—no family gift, no stock windfall, and equity is currently tied up in a second home in Palm Springs.

We’re looking into two models:

Silent Co-Ownership

• Investor contributes all or part of the down payment

• My family member would live in the home full-time and covers 100% of the monthly mortgage, tax, insurance, and maintenance

• Equity and appreciation are shared based on initial structure

• Clear buyout option or exit terms in ~5–7 years

Lease-to-Own

• Investor buys the home

• Multi-year lease and a pre-negotiated option to buy at a set appreciation or fair market formula

• Builds equity or credits via monthly payments or upfront consideration

Has anyone done something similar? I’d love to hear:

• What structure worked best (LLC vs TIC, co-buyer agreements, etc.)

• How you protected both parties’ interests

• Tips on exit strategy design (refi vs sale vs equity buyout)

We’re not pitching or soliciting—just learning from those who’ve navigated this path or considered it. Appreciate any wisdom you’re willing to share 🙏