20 Years Old Exploring House Hacking

[Chad Spitz]

I am a 20 year old college junior in Oregon, currently playing on my university football team. I am currently in the process of selling an inherited property and hoping to have around $200,000 in capital. My long term goal is to get into real estate investing, specifically starting with a duplex using a house hacking strategy.
Some questions I have-

Should I consider forming an LLC before my first purchase?

Any tips on house hacking with a friend who is also on the football team and interested in the same thing?

What indicators are most important for rental demand (population growth, job market, crime rates, schools, etc)?

I’m trying to learn as much as possible before graduating and making my first investment. Any advice is greatly appreciated.

Thank you,

Chad Spitz

[Bo Smith]

Chad, youre in a solid position with $200K at 20. Not many people have that runway. To your questions: An LLC probably overkill for your first deal, but Id at least talk to a CPA about entity structure before you close. Depends on Oregons laws and whether youre planning to scale fast. Doesnt cost much to ask.

On house hacking with your friend -- be careful. Ive seen partnership deals blow up when one persons life changes (girlfriend, injury, transfer opportunity). Make sure you have a buy-sell agreement in writing before you buy. What happens if one of you wants out in year two? Write it down now, not later.

Population growth and job market matter more than anything else. If jobs are flowing into an area, rents follow. Crime and schools are nice-to-haves but secondary. Look for areas with 2-3% population growth minimum and actual employer activity -- not just promises. Oregons got some solid markets if youre willing to look outside Portland. Are you set on Oregon, or are you open to wherever your capital gets the best terms and cash flow?