I am running similar network with my friends...
I bought 1 Ethernet Switch with 8 ports. I connect them as router in port 1, my pc in port 2, friend1 in port 3, friend2 in port 4..
My IP is 192.168.1.2 , Friend1---> 192.168.1.3 , friend2 ---> 192.168.1.4
All other setting is same on each...