House Hacking Leasing Contracts

[Eric Hipolito]

I'm planning to buy my 2nd property in my name to decrease my down payment (3.5-5%, FHA or Conventional) and plan on house hacking. My question is, would it be better for my roommates to pay me directly or should I start an LLC and treat it like a business from the beginning. I want to cover my assets, but also prevent any awkwardness that might arise from being both a roommate and landlord at the same time.

Follow up question, what would a good exit strategy be for when I move out it 1-2 years when I try to rinse and repeat the process.

All insight greatly appreciated!