Pacaso: The Vacation Home Investment You Didn’t Know Existed (But Might Want to)
Taking a deep dive into Pacaso’s Co-Ownership Model—Is It a Smart Way to Invest in a Second Home or Just a Fancy Timeshare?
Owning a second home is a dream for many, but the reality of high costs, maintenance, and limited use often makes it impractical. That’s where Pacaso comes in—offering a modern take on luxury homeownership through a co-ownership model.
But is Pacaso just a convenient way to own a vacation home, or does it actually make sense as an investment? In this deep dive, I’ll explore how it works, the financial pros and cons, and whether it’s the right move for you.
What Exactly Is Pacaso?
Pacaso is a real estate co-ownership platform that allows multiple buyers to purchase shares (from 1/8 to 1/2) of a high-end home in prime vacation destinations. Unlike a traditional timeshare, Pacaso offers actual property ownership—meaning your name is on the title, and you can sell your share at market value.
Pacaso also manages the property, handling everything from maintenance to scheduling, so owners can enjoy a stress-free vacation home experience.
But how does it stack up as an investment? Let’s break it down.
The Case for Pacaso as a Smart Investment
1. You Own a Real Asset, Not Just Usage Rights
Unlike timeshares, which only grant the right to stay at a property, Pacaso provides deeded real estate ownership. This means:
✅ Your share can appreciate in value alongside the real estate market.
✅ You can resell your ownership stake at market rates.
✅ You aren’t locked into an arbitrary timeshare contract—you own part of the home itself.
2. Lower Cost, Higher Accessibility
Most second-home owners use their properties only a few weeks per year—but still pay 100% of the mortgage, taxes, and maintenance. With Pacaso, you only pay for what you’ll actually use, making it a more cost-efficient entry into luxury homeownership.
💡 Example:
• A $4M beachfront home in Malibu may be out of reach, but owning 1/8 of it for $500K? That’s a different story.
• You still get exclusive access for your portion of the year—without the full financial burden.
For buyers who want a high-end property without the high-end cost, Pacaso offers an appealing alternative.
3. Hassle-Free Ownership
Pacaso takes care of the maintenance, repairs, cleaning, and scheduling, so owners don’t have to worry about the typical headaches of second-home ownership.
🛠 No fixing leaks or handling contractors
📅 Smart scheduling via an app (so you don’t have to coordinate with co-owners)
🧹 Professional cleaning and upkeep
For buyers who value ease and convenience, this is a big plus.
Potential Downsides & Risks to Consider
1. Limited Flexibility
While Pacaso’s scheduling system is designed to be fair, co-ownership naturally means you don’t have unlimited access to the property.
🔹 Your stays are based on your ownership share, so you can’t just show up whenever you want.
🔹 Holidays and peak seasons are shared among owners, so availability may not always match your ideal dates.
If having complete control over your second home is important, traditional ownership might be a better fit.
2. No Rental Income Potential
One major downside for real estate investors is that Pacaso homes cannot be rented out.
🚫 Owners are not allowed to generate rental income from their share.
If your goal is to use a second home as a short-term rental investment, this model won’t work for you.
3. Resale Market Considerations
Since Pacaso’s co-ownership model is relatively new, the resale process isn’t as developed as traditional real estate.
🔹 Pacaso helps facilitate share sales, but the buyer pool for fractional ownership is smaller than for full properties.
🔹 While high-demand locations might make reselling easier, it’s not as liquid as selling a single-owner home.
If quick resale and high liquidity are top priorities, you may want to consider how long you’re willing to hold your share.
Who Should Consider Pacaso?
✔ Vacation home seekers who want luxury without the full cost.
✔ Buyers looking for long-term appreciation in high-end real estate.
✔ Those who prioritize convenience and maintenance-free ownership.
✔ People who realistically only use a second home for a few weeks per year.
Who Might Want to Think Twice?
❌ Buyers who want unlimited access to their second home.
❌ Investors who want rental income from their property.
❌ Those who prefer full control and flexibility over their real estate.
Final Verdict: A Smart Investment or Just a Lifestyle Choice?
Pacaso isn’t a typical real estate investment, but it can be a financially smart way to own a second home. If you’re looking for appreciation potential, ease of use, and lower costs, it may be the right fit.
However, if you value full control, rental income, or fast liquidity, Pacaso might not align with your goals.
At its core, Pacaso is more about smart homeownership than wealth-building—and for many buyers, that’s exactly what they’re looking for.
Would you consider co-owning a vacation home through Pacaso? Let me know your thoughts! 👇
My Week in Real Estate:
This week was a little hectic after officially listing a new apartment available in the Templeton area. The rental market in Massachusetts is THRIVING as I got over 30 inquires on the listing and hosted a pretty steady Open House for it. I also finally got to meet some new buyers at a showing right before the snowstorm on Saturday. I’m looking forward to helping find their perfect starter home. I had a business lunch on Tuesday meeting up with some good friends in the Real Estate industry to plan out some lead generation ideas for the rest of the year. My buyers and renters pipeline is growing so if you know of any great homes or apartments, let me know!
My Favorite Thing This Week:
Morning Brew is a daily news blog and podcast I came across this week and I’m loving what it has to offer. It’s a quick read on some non-so-popular news stories and leaves the political side of things out.
Blog Notes:
I’m working to put together a list of any Off Market properties I come across and a Vendors List of all vendors/contractors I’ve either used or met with that I would highly recommend to anyone in search of a specific profession. Let me know if you would be interested in having access to this!
Thanks for reading..…and as always, I’m never too busy for your referrals!
Ken Ferris
978-962-1191