I have a feeling this will be a stupid question but here it goes.I have a partner who only wants the tax benefits of real estate and is not concerned about the property income. 

Does not include removing or installing and assumes one large unit would be adequate (most likely not for a 115v 14-15k unit)$1750/mo x 12 x 20=$420,000 - $4000 for central A/C= $416,000.So  about $37/50/month gain for Central A/C if you are able to get $15/month more you break even. 

. - If you live in the house for more than 2 years, you may be able to sell without paying capital gains taxes.

Get paid 5% for X years, delay the capital gains hit and make more money from the interest payments while being relieved of the stress as a landlord. 

Seller remains the property owner until the contract is fully executed (last payment is made), buyer has benefits of ownership, but if something goes wrong, it's a contract termination not foreclosure.

@Daniel Brown Yes, some banks will HELOC based on your tax assessment after the house has been “seasoned” lived in for 1+ year.While this would save you the $500 appraisal fee, it likely won’t benefit you in this case.You want a formal walkthrough / appraisal.

What has more benefits / tax advantages. 

Tax benefits or implications either way?

Then we pay the taxes on that gain.

I mean if you happen to have an extra $20,000.00 to play around with it might be worth gaining the experience if it can provide you with a new strategy for forced appreciation or increasing the expected rental income.