How a Basement Apartment Saved a Couple $20,000

Caroline, 24, and Gabriel, 25, have been together since 2019 and knew early in their relationship that they would marry. When they started seriously planning their future in 2021, they faced the same challenge many young couples encounter: how to afford a home while saving for a wedding.

That same year, Caroline's parents began house hunting for a larger space to accommodate Caroline's younger brother—who coincidentally shares the same name, Gabriel. Instead of simply finding a bigger house for themselves, they proposed a solution that would benefit the entire family.

"My parents were like, 'We're thinking of moving to a bigger house anyway, and what if we bought a house with the intention of transforming the basement of the property into an apartment?'"

The proposal was straightforward: the basement would serve as the couple's home for the early years of their marriage, with no pressure to accept. Her parents even mentioned they could rent the space on Airbnb if the couple declined.

The parents purchased the larger home in 2021, giving them over two years to customize the basement before the wedding. Caroline moved into a room upstairs, while Gabriel lived in a college dorm until their May 2024 wedding.

The basement had potential but required significant upgrades to function as a proper apartment. When Caroline's parents bought the home, the basement featured only a small bar area with a sink—not a functional kitchen.

Caroline's father took on the renovation project, making several strategic improvements:

• Relocated the washer-dryer from upstairs to the basement
• Upgraded to newer models for the main house
• Removed existing cabinets and installed a dishwasher
• Constructed a full kitchen with IKEA cabinets
• Replaced carpet with vinyl flooring in the kitchen area

The kitchen features a refrigerator, ample counter space, and an air fryer and induction cooktop instead of a traditional stove. This choice was practical: installing a stove or oven in a separate living area in Maryland requires permits and electrical work that would have been prohibitively expensive.

The apartment functions as a one-bedroom unit with distinct zones. The living room serves as the entry, featuring a sliding glass door to the exterior, a large sectional sofa, bookshelves, and a TV. A separate dining area accommodates a table for six and a desk for Caroline's photography work.

The bedroom sits on the same raised level as the kitchen, separated by French doors, and includes a "mini walk-in closet" that Caroline describes as surprisingly spacious.

The financial benefits of this arrangement became clear immediately. While Caroline's parents didn't require rent, the couple insisted on paying to maintain financial discipline.

"I don't think it would be wise for us as adults to not pay rent because I feel like the moment we move out, it's going to be such a huge financial shock to go from $0 to $2,000 or $3,000 a month,"

Caroline explained. They paid $1,000 monthly when they first moved in, then reduced it to $500 after Caroline left her full-time job to pursue photography in fall 2025. This rate included all utilities, avoiding the typical $2,000 to $3,000 monthly cost for a comparable apartment in Maryland.

The savings extended beyond rent. When a pipe burst in the basement earlier this year, Caroline's father handled the repair at no cost to the couple. They also avoided unexpected out-of-pocket expenses that typically accompany first-time home rentals.

The arrangement provided additional financial flexibility. Since Caroline was already living upstairs, they could slowly acquire furniture and belongings over two years, spacing out major expenses rather than facing a large upfront cost.

"We started buying things little by little and leaving them in the basement, which was really helpful," Caroline said. "We bought our sofa a year before we got married, and it gave us time to space out those really big expenses for furniture and wedding planning."

Living with in-laws requires careful boundary-setting. The families installed a door between the basement and main house, creating physical separation while maintaining accessibility.

"In the stairs that separate the basement and the first floor, we didn't have a door there," Gabriel said. "Because of privacy, they installed a door that we both have keys to."

This door allows easy access when needed but prevents accidental interruptions. Caroline's parents also ask permission before visiting their dog, Sunday, who sometimes stays in the basement apartment.

The families don't eat meals together daily, instead gathering on weekends for lunch after attending church. This routine makes the living arrangement feel more like separate homes than a single household.

Caroline has a photo studio in her parents' home, which has increased her time upstairs recently, but she maintains daily phone calls with her mother regardless of proximity.

Gabriel feels fully integrated into the family. "I honestly feel like I'm part of the family, like I'm one of their sons, and we're always checking on each other," he said.

The couple emphasizes that their strong relationship with her parents made this arrangement possible. "It's essential to have a good relationship with whoever is living upstairs," Gabriel noted, "because it will make or break the experience."

The Navarretes' living arrangement reflects broader cultural patterns. "I think culturally speaking, this is very predominant in South American Latino culture," Caroline explained. "For us, it's actually very normal in our culture to want to stay close to parents."

This cultural perspective influenced their decision-making process. Caroline's parents included Gabriel in their 2021 home search, asking for his input on potential properties despite the couple only dating at the time.

"They brought him along, and they were like, 'What do you think? Do you think this is good? Do you like it?' They kept us very involved from start to finish."

The arrangement has provided practical benefits beyond finances. When Caroline broke her foot in January 2025 and required surgery, her mother came daily to help with recovery. The couple also enjoys built-in house and dog sitters when traveling.

Caroline and Gabriel hope to purchase their own home by May 2026, their two-year mark in the basement. While Caroline's recent career transition and housing market conditions may affect this timeline, they've already saved the $20,000 down payment.

After the couple moves out, Caroline's parents have options for the space: they could rent it on Airbnb or offer it to Caroline's younger brother, who shares Gabriel's name.

The Navarretes' experience demonstrates how multigenerational living can serve as a powerful financial tool when approached thoughtfully. Their story challenges conventional assumptions about independence and homeownership.

Key lessons from their arrangement include:

• Reduced rent allows for aggressive savings toward long-term goals
• Clear boundaries and communication are essential for success
• Customizing a space over time reduces upfront costs
• Family support can accelerate financial milestones

Caroline reflects on the decision with satisfaction. "I'm really glad that we decided to stay down here because it's helped us in so many ways," she said. "And I know that it's paving a way for a more successful and stable future for both of us."

The couple recommends this approach to other young adults, emphasizing that the arrangement's success depends on mutual respect and strong family relationships. Their philosophy—"that's what family is for"—prioritizes collective support over individual appearances of independence.