House Hacking - Newbie

[Brian Edwards]

Hi Everyone!

Hope this message finds you well.

I recently closed and moved into my 3 Bed/2.5 Bath SFR in Alpharetta, Ga (Northern Suburb of Atlanta). My goal is to house hack, aggressively save and live in it for 2-3 years before leveling up to a 4-8 unit.

I will be renting out the master bedroom and the other bedroom to get as close to the mortgage payment as possible ($1,650). I used a 3% down conventional loan.

I have 2 questions and would love some guidance:

1) Do I need an LLC to report rental income?

- You hear LLC all over the place and I know in some cases they aren't necessary. I own the house in my name and have insurance.

2) Dependent on #1, are there considerations if the income is not consistent in terms of structuring the leases. (Ex: Master is rented out for 9 out of 12 months of the year (some vacancy) and the other bedroom is rented all 12 months of the year. I've heard of the House Hacker (Me) renting the house from "Example LLC" and House Hacker (Me) subletting to the tenants.

I appreciate any and all input! I’ve been a BP Podcast junkie for years now and love the community.

TL;DR: Do you need an LLC for House Hacking? How do you report House Hacking Income?