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  • Something often missed is the permissions on the parent directory. It's possible that /home/user1 has no execute permission for user2. The simplest way to fix this would be chmod o+x /home/user1 since I guess you don't want to change the group on the home directory you need to give everyone execute permission on it. Commented Mar 20, 2019 at 23:08
  • I swear that this exact same question was asked earlier this year but I wasn't able to locate it. Anyway, the other user can't access the directory because the home directory of each user is only traversable by the respective user. Rather than having the folder inside of another user's home, just put it in mnt and change the permissions in that directory or create an NFS export that only the two users can access. Commented Mar 20, 2019 at 23:11