It’s not just about the financial stability, but rather about the life stability.

What happens if one of your friends decides he doesn’t want to go to school, or has a reason to move away? Do they stay invested in the house and rent out their room? What if they don’t want to be invested anymore and get their cash out?

You’re also just thinking about the month-to-month finances. One of the big benefits of renting is that if something goes wrong, the landlord is on the hook to fix it. If you own it, you’re on the hook. What if the roof leaks and have to pay $2k to fix it? What if you have foundation issues and need to pay $10k? There are all sorts of things that can go wrong.

If you’re really serious about this, you should research the concept of “Tenants in Common” it may be more specific to California, but the idea is that there are very clear rules and precautions in place to ensure everyone who owns a property is legally bound to take care of it.

I know what you’re thinking “oh we’re all friends and we’ll figure it out”. What I can tell you is that when money is tight and a $10k comes your way, friendships can be broken.

Renting a place avoids most of that.