Collect her rent payments and gift it back to her for tuition or other expenses while avoiding taxation.It would be worth talking to a CPA to see how to position yourself best while protecting yourself and teaching your daughter to live like an adult.

I can recommend a CPA if you want me to connect you.

I would also consult a CPA because there are going to be a lot of write offs with it not only being a primary residence, but also collecting rental income.

*this post does not create an attorney-client or CPA-client relationship. 

Starting with "I am not a CPA", however it is my understanding that typically inheriting the property after passing is the best way to avoid taxes due to the grantees stepped up basis. 

The entry-level Quickbooks Online software itself is expensive $250/yr... that's not even adding up potential books/courses, CPA fees or personal tax filing software like Turbo Tax.

It never hurts to consult with a CPA and asset protection attorney.

My realtor mentioned the later that works with the local title insurance, but when the realtor spoke to her about my situation she said I needed to check with a CPA to see if my sale would qualify as a 1031 and that she is just the "accommodator" of the money as it exchanges hands.

I am looking for a CPA that specializes in short term rentals that can help me navigate this process.

You will need a real estate attorney who does this sort of work, your CPA needs to be involved and it sounds like a lender.