How to structure home investment with loan in daughters name

[Rachel Deering]

I have been looking for an investment property and my 24 year old needs a place to live. She is in New Jersey and I am in Dallas. We are not in a position to just give her money and need our money to create passive income and equity. She is not ready to tackle home-owning by herself. She can qualify for the loan on her own, but we would fund the 3.5% down payment and closing costs.  We have found a duplex with a tenant who pays more than what 1/2 the mortgage would be. How can I set up a business agreement without me being on the loan (so that I can do another investment without that liability on paper) where we are both benefiting from the arrangement? BTW, she is absolutely thrilled at any arrangement that would get her so much more for her money on a monthly basis than she would get renting, which is what she would be doing if we did not help her get into the house.  We are a very tight-knit family with complete trust and respect for each other and we would put the agreement on paper. The property would continue to be a rental investment for both of us after she moves on, probably in a couple of years.  Thanks so much for any input.