Once you have grown to the point where you are beyond house hacking and are purchasing for pure investment, not a place to live, then you can really start using the LLC or other strategies.   

@Brett JurgensThe "2 out of the last 5-year rule" in real estate allows homeowners to exclude up to $250,000 ($500,000 for married couples) of capital gains from the sale of their primary residence if they lived in the home for at least two out of the five years before the sale.

In my opinion the best way to house hack is to purchase a multifamily where you can live in one unit while renting out the rest.

Hi All, my names Josh, I'm a kiwi living in the UK building the portfolio with a unique business model which brings into other investors into a compoinding model with both Capital and perpetual returns.i have a well developed process and network here in the UK and New Zealand, wanting to explore the US market.

Both groups are showing up with a clear purpose, need a good night's rest and want a safe place to live close to where they work/study. 

I currently have 3 tenants that are all female and I live in the 4th room (house hacking). 

If you can live with roommates, do it.

Here, there are lives at stake.

They are happy to look further from where they live, in a better rental market, because they do not want to do the management.If this were the case, then as others have said a hybrid of a 2-4 unit might be the best place to start.  

@Chris KellyI lived in an apartment when i was younger and the downstairs tenants smoked like Cheech & Chong.