Since this is a family property you likely know it inside and out during your ownership so it should minimize the number of calls you get and glitches in the unit.

Does anyone have any ideas on how to minimize that tax liability and still continue with my original intent, or is my only option a 1031 (I'm aware of DST but don't see that as a great option).  

I've spent the last year or so (on and off) looking for my first investment property to house hack but have had minimal luck.

If you are not a real estate professional and bonus depreciation is limited to 40% starting Jan 1, the tax benefits are going to be pretty minimal unless I am missing something. 

What really bothers me is these so-called gurus are all using the same model... entice you with glitz and glamour of how you can become a "Real Estate Genius" by using there systems only to find out after you have paid thousands of dollars to them most of the info they teach can be found for free or at least minimal costs.  

Occasionally you will get no occupation which if they fill in an agency or other info is fine but you have to have minimal data.

You can purchase the first one with a private loan from your dad or cash to minimize risk, and leverage a second or third property with a bank loan and the rest of your cash.

It makes sense to have standards, especially when you’re working with tenant-occupied properties and need to minimize unnecessary showings.

Only issue is you have minimal insight on monthly performance unless you download the bank statement and then build custom charts in excel or google sheets. 

As for the interest rate, it does help being 0% minimizing the cost but even if there was an interest rate, as long as you have enough room on the cards to float, it's not your money you are spending.