Primary Residence Rules

[Lue Yang]

Looking for a professional opinion. 

I would like to buy a multifamily property within the next year with my younger brother. Since I am out of state, the plan is for us to buy it together and he will make it his primary residence to get the lower down payment. I will provide all the upfront costs (down payment, closing, etc.) and he will be the property manager (finding tenants, maintenance, etc.). We would split the cashflow and equity. If this works, it would be a perfect way for him to get started in real estate by learning how to house-hack and also building equity while I will get a lower down payment into a high cashflow property. Also, would it be a good idea to make an LLC since we will be partners? My goal is to do this for all my 4 younger brothers once they become of age.

Let me know if this would pass any primary residence rules since I won't be living there, but he will. Thanks!