buying house in college town for my daughter and as an investment

[Kaycee Siltler]

Hi.  I am planning to buy a 5 bedroom single family house in Buffalo, NY for my daughter to live in.  She will be there for another 5 years in a combined BA/masters program.  She has 4 friends who want to live with her and will pay rent.  The house is minutes from campus in a great neighborhood.  It is cheaper than leaving on campus.   I think it is a strong investment.

I will buy the house with cash using a HELOC on my primary residence. But then I am thinking of later getting a traditional mortgage to avoid the risk of the HELOC interest rate (currently 5.25%) rising.

My question is:  Can I get a mortgage with owner-occupied (rather than investment property) rates?  If so, does my daughter have to be listed on the deed?  On the mortgage?  And if I list my daughter on the deed and/or mortgage, does this affect my ability to consider this an investment property for tax purposes, e.g. deduct expenses?

Basically, I want to both have and eat my cake, if possible.  Thanks for any guidance.