I'm looking to house hack a tri or quad plex in Louisville, KY, and a lot of the properties I am looking at are zoned for single or double family.

Asking here will only get people to recommend their areas for the most part, but you should do this to determine the best area to invest out-of-state1. make a list of every place you and your wife have ever lived2. make a second list of where you closest friends and family (the ones you like) live3. use those lists to ask questions and review good investment market listsWhen you see something from 3 that is on 1 or 2, that is a good place to start if it fits your budget.

Personally, I do not want to leave a future taxable gain to my family. 

Most multi families go for above asking by 10-20% and often are cash deals.  

Just trying to look for something accurate. my market is multi families in nyc. 

I have family in West Virginia, Ohio, and Kentucky, 2 of which are realtors and another is a cpa.

Are you going to buy large commercial properties with safe returns... are you going to be residential properties for buy and hold rentals... are they single families that will appreciate or multi-families which don't as much?  

The rule is for a single-family home where you lived first and rented after you moved out. 

Investment Info:Small multi-family (2-4 units) buy & hold investment.

Having a family there are always reasons why funds cannot be allocated towards starting a business or investments.