The reality is messy and it's a muddled combination of all three.I had the huge benefit to start in 2008, not sure if I could pull it off again in today's market.

I’m particularly interested in off-market opportunities and would appreciate working with someone who knows the area well.The purchase will be under my name, but I’d love to take advantage of any benefits tied to my daughter’s first-time buyer status, especially considering her limited credit and assets.

I recently learned that if you owner occupy a residence for part of the 5 previous years before sale, and you rent it for the remaining time, you can calculate the percentage of time the property was owner-occupied (and thus qualifies for the sec. 121 primary sales tax exemption of up to $250k for single filers) vs the time it was being rented (which qualifies for 1031 exchange) and claim both benefits. https://hcsequity.com/blog/combining-1031-exchange-with-121-....How does this work for a multi-family?

@Alexander F PollockYou may lose a tax benefit of a stepped up basis for capital gains purposes transerring interest away from her parents.Also consider conducting a judgment searches on all parties to the transaction to confirm there will be no title problems for would come up when the LLC sells in the future because you will not have title insurance to cover prior owner issues.

An LLC is not necessary, but there may be benefits if you understand what you are doing and do it correctly.

Besides the  depreciation,  tax  benefits that I would get if  I was renting to him are there there any advantages on co-owning instead of  me renting to him?

I own a property in the Disney market and co-host/manage another 25 in the area.Disney I think is a good market if your goals are more aligned with traditional long term real estate goals, and a bad market if your goals are more immediate gratification and short term cash flow.The major benefit of the Disney market is that it's about the safest market you can find from a long-term perspective. 

So I don't see any benefit to holding on to it longer when you're that negative on cash flow. 

The true benefits of real estate investing are realized when you hold.

I’m also open to any advice or help that may benefit someone like me who’s totally new to real estate or better yet new to investing and creating a portfolio all together.