Should I Bring 2 Friends in on House Hack?

[Robert McCormick]

Here's the story...

I've been planning on buying my own duplex that I can house hack for about a year now. I have also set a timeline for myself that by July of 2021 next year, I will have enough money saved up to purchase. However, one of my major concerns so far has been that, even though I could qualify for about a $300k purchase price, my money would be TIGHT with the PITI and all operating expenses-if I bought a duplex for max of $300k.(I live in North Jersey/NYC Metro Area so prices are STEEP) I've talked it up to a bunch of my family and friends and I believe that I can realistically own my first property by next summer using this real estate investing strategy. Yet, at times I'm hesitant I may be in over my head financially.

Then in come two of my friends, who recently brought up that they also wanted to get started in real estate investing in small multifamily properties and eventually into large apartment buildings, somewhere down the road. We brainstormed creating an LLC collectively so we could start investing without any of us being personally liable. However, the more that I think about it, the more I think it might be easier for all of us to house hack together just to get our feet wet. Then, once we get through this first deal and get a feel for the process, we could consider starting an LLC and get into larger and larger properties.

Does this sound like a more realistic/practical option of bringing them in on the house hack or would it be smarter to keep my own duplex investing goal for myself and invest with my two friends separately? 

Thanks!