In the game, I over leveraged my money and went bankrupt a few times.

WAMU was bankrupted 2007 and the file servicing spun to Wells (most went to Chase but this was a long contentious file originated by Gateway Funding of Horsham PA.) 

During the downtown, I saw these items with borrowers that went bankrupt: 1.

(Of course it is different if the otherperson is going to get you in trouble or cause you to go bankrupt).

Then, in the following year, insurance companies did one of the following: went bankrupt, stopped writing policies in Louisiana, or raised rates and requirements to ridiculous levels. 

The only difference is that Texas has a much more diverse and booming economy (Illinois is practically bankrupt).

A house hack is like that beginner run (but BRRR'ing, wholesaling, and out-of-state investing are more like double black diamonds).The fact of the matter is: real estate is often a high-stakes endeavor, and the more advanced strategies (like BRRR'ing, wholesaling, flipping, out of state investing, etc.) can easily bankrupt a beginner when they're executed poorly.Now, having said all that, house hacking is not necessarily easy (if it were, everyone would do it!)...

It most definitely is the morally correct thing to do to throw every penny you have, no matter if you have to bankrupt your business, to put that check in the box.

If the company goes bankrupt, its thank you very much.passive- i would go with stocks  

It give some incentive to the borrower not to bankrupt his LLC.