People use anonymous structure to avoid this.

AVOID LIKE THE PLAGUE

But by putting the properties into the business name you can avoid having the debt reported to personal credit so long as the funding lenders servicing company allows for it.

Avoid investing in any city listed here: The Most Dangerous Cities in America, Ranked.Cities with a metro population >1M: Companies need significant infrastructure, which is only available in metropolitan areas with a population > 1 M.

It is important to factor in all the benefits of house hacking into your calculations, i.e. amortization, appreciation, income, & potential rent avoidance.

I’ve found that working with someone who’s local and understands the market dynamics can really help avoid costly mistakes.Keep us posted on your progress—I’m sure others here would love to learn from your journey too.

There are some loopholes and tricks to know up front that can help avoid lost time and money.

However, I would avoid neighborhoods where the vast majority of the homes are owner occupied and all of the homes are really well kept - you can do a quick search on county GIS or software and click on the homes to see if they are owned in personal names or LLCs. 

The good news - there are plenty of family-friendly neighborhoods between St Paul and S Mpls which offer decent opportunities for a househacker - you just need to know where to look, what to avoid, and where the opportunities are (undervalued properties, under rented units, value-add opportunities).

This should be avoided.