Buying a Two-Unit Building With Friends in San Francisco: A TIC Case Study
For many San Francisco buyers, owning a building with close friends or family is a dream: people you love just a flight of stairs away, with everyone enjoying a home of their own. Buying a two-unit building together can make that possible, bringing more connection into everyday life while allowing each household to maintain its independence.
We recently helped two longtime friends make that dream a reality. One household was a couple expecting their first child, while the other was a single buyer. They came to us with a clear vision of sharing a building in a neighborhood they loved, with each residence suited to their individual needs. Our role was to help them find the right property, navigate the TIC purchase and financing, and make renovation decisions that would serve them well both personally and financially.
Finding the Right Building for Both Households
Finding a building for two households requires understanding what matters to each buyer and how those priorities fit together. We explored their preferred neighborhoods, unit sizes and layouts, property condition, and opportunities for improvements. We also helped them weigh the convenience of a renovated property against the value they could create by purchasing a building that needed updating.
Two residences within the same building rarely offer identical features or value. Differences in square footage, natural light, outdoor space, parking, and condition all deserve consideration when deciding whether a property works for both households. The goal was to find a building where each buyer felt excited about the home they would occupy and comfortable with the overall arrangement.
Through diligent searching, deep relationships within the real estate community, and extensive knowledge of San Francisco real estate, we identified the ideal property for their unique needs. The upper residence was slightly larger, making it well suited to the couple’s growing family, while the middle residence offered an ideal layout for the single buyer. Both households already knew and loved this particular part of the neighborhood.
The substantial undeveloped space at the garage level offered another advantage: the opportunity to create a third unit for visiting family or other future needs. We regularly undertake these projects ourselves and advise clients on them, so we could help our buyers understand how that additional space could support their plans over time.
Purchasing With Separate TIC Loans
Financing was an important part of making the purchase work for both households. We connected our clients with an experienced local TIC lending specialist who helped them evaluate their options, and they ultimately purchased with two separate TIC loans. Each household financed its respective ownership interest, giving them greater independence than a single shared mortgage would have provided.
Addressing financing early helped both households understand their purchasing power and move forward with a clear structure. Separate TIC loans also supported their desire to own together while maintaining individual financial responsibilities. The appropriate financing depends on the property, borrowers, and available loan programs, which makes working with an experienced TIC lender an important part of the process.
Tailoring the TIC Agreement to Their Plans
The building already had a draft TIC agreement, but several provisions needed to be adjusted to reflect how our clients intended to use the property. We helped them work through parking allocation, exclusive-use areas, shared spaces, yard access, storage, and roof rights, then coordinated with the appropriate professionals to incorporate their decisions into the agreement.
These details shape daily life in a shared building and deserve careful attention before the purchase is complete. A strong friendship provides a meaningful foundation, and clear ownership arrangements help protect that relationship by establishing expectations from the beginning. Our role was to help the buyers identify the decisions that mattered, understand their implications, and establish an arrangement that worked for both households.
Renovating With a Clear Understanding of Value
The property needed updates, giving both households the opportunity to create homes that reflected their tastes and needs. Drawing on our construction and renovation experience, we helped them evaluate which improvements would have the greatest impact and where additional spending could erode the financial advantages of the purchase.
Our conversations covered everything from the cost of expanding beyond the existing building envelope to choices about kitchen cabinetry and countertop materials. We helped the buyers weigh those decisions against their priorities and the property’s overall value, and connected them with reputable, experienced contractors who could carry out the work.
That guidance helped both households approach the renovations with a clear plan. They could create comfortable, updated homes while keeping acquisition and improvement costs aligned with the opportunity we had helped them identify.
The Outcome: Homes They Loved and Substantial Added Value
The completed renovations delivered updated residences in the neighborhood both households wanted, along with a strong financial outcome. Based on our estimated market valuation, the improved property was worth approximately 30% more than their combined acquisition and renovation investment.
Just as meaningful was the life they were able to create there. They could remain close as their lives evolved, with the ease of having a longtime friend nearby and the independence of separate homes. The garage-level space also gave them room to plan for future needs.
What Other Buyers Can Learn From Their Experience
Buying a building with friends or family starts with a shared vision, but it also requires honest conversations about money, maintenance, renovations, and future plans. We encourage buyers to consider how they make decisions together, how they have navigated disagreements, and what each household would want if circumstances changed or one owner decided to sell.
The property itself needs to work just as well as the relationship. Each household should feel confident about its residence, ownership responsibilities, and financial commitment. With the right building and a carefully structured TIC arrangement, purchasing together can open the door to a home and lifestyle that would be difficult to achieve independently.
Considering a Two-Unit TIC Purchase in San Francisco?
Drew Wilkerson ranked as San Francisco’s #1 TIC agent by transaction count in 2025, and our team has ranked among the top 1% of real estate professionals nationwide for six consecutive years. Our experience spans TIC transactions, multi-unit properties, construction, and renovation, allowing us to help buyers understand both how a building could fit their lives and where they can create value.
If you are considering purchasing a two-unit building with friends or family, we would welcome the opportunity to help you find the right property and bring your vision to life.
