Purchased first duplex and will house hack. Advice wanted

[Matt Zimmerman]

Hey Everyone - 

Glad to say I made the jump and purchased a duplex in NE Minneapolis, MN just miles from Downtown. I'm 24 years old and went in on the deal with a college roommate. Excited to house hack! Would love to hear stories/advice from other's first time house hacking and what to take advantage of and look out for IE) choosing tenants, insurance/licenses, and the benefits I can use to my advantage from a tax standpoint. Any advice is good advice! 

Thanks! 

[Greg Scott]

Congratulations on taking the plunge!

Hmmm.  Not enough here to give you too much advice.  I would say there are several major failure points to watch out for:

1) Buying it right.  If you overpaid, you can be cooked from the start.  Not sure where you are.

2) Right tenants. Easiest way to fail is to do a poor job screening tenant.  

3) Right ownership. You "went in on the deal" scares me.   Who makes the decisions?  How are out-of-pocket costs divided up?  If you get in a fight, how are issues resolved.   Ideally you put all this in writing before buying.  If you didn't, try doing it while you are still friends.  If you wait until there is a problem, you may be toast.

4) Managing right.  Get educated.  While you may never have a problem, you want to make sure you are on the right side of the law.  I've seen landlords with leases that are illegal.  If they got in a lawsuit, they would have gotten crusted.  Be smart.

You have already taken the hardest step.   Keep going.