I have been flipping homes for several years but would like to start involving and teaching my adult children on becoming a partner.

Perhaps if you happen to be married, consider options for your partner to become REP. 

Alternatively, consider partnering with a cash buyer or exploring other investment strategies like turnkey rentals.

So, this serves my goal to grow & diversify my portfolio while earning great tax benefits.4) I am in a strong financial position where I could qualify to buy multiple and have adequate reserves to maintain the properties long term and cover any potential negative cash flow during the time I own them.

Seeking Advice on Connecting with Private Money Lenders or finding 50/50 money partners – Your Insights Welcome!

You should look for a partner, that would be the easiest way.

You might want it to go to your parents, or a sibling, or maybe a child you have.If you're investing with a partner I would use tenants in common instead of joint tenancy; however, if it is an investment I would highly recommend some entity own the property and have the documents for that entity describe exactly what happens to the property in different situations.I hope that help clarify some different situations when one type of ownership is better than another.

The state wants a separation as a step to divorce and if a partner lived away from home how does that requirement work?

Could you partner with a developer to make a subdivision?

Then you could determine how far you want to go with the project vs your capital vs partnering with someone to help make the vision viable.