What are the potential pitfalls and benefits of each approach?

I recommend that you speak with a real estate accountant to see if you will benefit from a cost segregation first. 

You get your tax benefits.

I am new to this and I would like to benefit from your experience please. 

It's people like you who cause folks who would actually benefit from an ESA to be painted with the same broad scammer brush. 

If you are living there, then you need to weigh the benefits of having a home, as oppose to renting somewhere else.

Holding the property should pay down the loan and give us tax benefits. 

Another benefit of this option is that it would allow you to get a conventional loan at 3-5% down. 

Are there any tax benefits from donating this land? 

Main benefits to this strategy include:- Low down payment options (as low as 3-5%)- Acquisition experience- Property management experienceThe NYC metro area has nearly 2,000 available 2-4 unit listings on the market.Other new investors consider the BRRRR Strategy.All the best to you on your journey!