House Hack/ Student Rental Strategy

[Thomas Brandon Petty]

I would like to get someone’s input on a possible way to start myself in real estate with a friend.

We are both upcoming freshmen in college and have been saving up for a down payment to buy a rental. Would it make sense for us to use an FHA 3.5% loan to buy a semi-luxury house and house hack it for a year by the door. And then do it again the next year under my friends name and turn the first one into a luxury student rental.

Would this idea work if I bought turn key properties and added as many bedrooms to the houses as I can when I’m staying there to maximize profits?

What does the mortgage look like on a FHA loan on a 350,000 house along with mortgage insurance, and would it be better to refinance as soon as possible to get rid of the mortgage insurance payment?

These are just questions floating in my head that I would really like to nail down before it’s time to buy one of these rentals, Thanks!