great advice everyone!

We want a two-family house with two completely separate dwellings, as far as I know. Yet having meals together is still a great suggestion! We do that already on occasion.

The co-op model sounds intriguing but since it is only two parties it may not be the best for us. The idea is for everyone involved to have some financial equity in this, for us all to be part of the investment over the long haul. But the "get-out" part is important in case any of us decides to move away for a job etc.

My coven (of which this couple is also a part) owns a house nearby and they bought it as a co-operative many years ago. Over the years others have lived there and paid rent, and been part of the co-op, but now there are only two owners. I think I will ask them what sort of legal arrangement they had.

The advice re: careful about living with friends is very sound. I have had friends as roommates and it was not always good. But since we have a model of this already in people close to us we may be able to avoid pitfalls. I have known them for several years and lived with them briefly, too.