Trying to make the best out of a bad situation

[Jeremy Miller]

Hi all, 

Background: So long story short, my wife and I are getting separated. After taking everything into consideration, it makes the most sense to let her keep the house.

Question: A friend and me have been looking for an opportunity to get involved with the real estate market. After my separation is there any smart move to make when I purchase my next house? Could I get a duplex or triplex and rent out the other units? Can my "rental company" I setup charge me rent? What would be the smartest thing to do to turn this unfortunate situation into something positive from a real estate investment perspective? 

I guess my situation is pretty much like someone looking to buy a new property and have it also be their home. Maybe that is the best way to view it..? How does that work when you will be buying the house with a friend? (this is my best friend, not some side girlfriend) Should me and my friend create some type of entity that owns the properties? 

Thanks to everyone who provides some input. This is a tough time, but I need to make sure that whatever I do is smart considering the long-term. I feel like this is one of those decisions that could make a huge difference regarding my financial well-being in the future. 

Hope everyone has a nice day. Thanks, 

Jeremy

[Natalie Kolodij]

Yes- You can absolutely get a duplex-fourplex and house hack this is an awesome way to start off. 

You DO NOT need to get into complexities of paying yourself rent. If you end up with a duplex with 2 equal sized units and you live in one...then basically 50% of the expenses/ rental income go to your schedule E. The other 50% that's your primary go to your schedule A as itemized deductions and you don't get to report rent for your side.