My husband, our daughter, and I are relocating to Louisville in June and planning to invest in my first small multifamily property (likely a duplex) using house hacking with an FHA loan early next year. 

@Noah MacCongratulations about thinking about REI at your age and welcome to the BP communityIn your situation, I would tell you the same thing I would tell my 23-year-old daughter.

If your plan is to buy a home near your daughter and live in it, the 1031 wouldn’t apply, but the Section 121 exclusion on the CA home may fully or mostly shield you from taxes.This post does not create a CPA-Client relationship.

Hey Bigger Pockets,I've been a commercial broker for a decade now at a big four firm, doing leasing and some capital markets work. about 5 years ago I started a CRE PE company buying up multi, mixed use, and other value add deals. today, i would consider myself a broker + principal as great as syndication is - i still had the desire to buy a new dog **** house every year personally as a long term wealth building strategy with no partners and where i could use it as I pleased if i so wished or do short term rental when i wasn't there I found it very hard to source deals in the market I was interested in scaling in for this use case. i had success speaking with the sons and daughters of deceased property owners that I found off the obituaries list but this was tedious to actually get to the heirs and find their contact information.Long story short, i created an algorithm and software that automates this processes and will be rolling it out soon!

The daughter is qualified on her own, but since the dad is going to also be living there and the other tenants has 2 daughters just want to be safe. 

This is something that does not happen overnight, but to give your daughter a great life and doing while working and building up a side hustle is hard.

House hacking with wife and daughter is very achievable. 

If you make this investment, not only are you going to lose all your money, you're gonna get dandruff, your dog is gonna die and your daughter is gonna run off with some biker dude!" 

Even a mother-daughter or a single-family with a legal accessory unit could do the trick.In the meantime, I’d also run the math on a condo or townhouse—especially if you can find one with lower HOA fees and strong resale or rental potential.

My my sister, (the niece that I am having the issue with) her other daughter and her granddaughter, (the niece that I am having the issue with) live in the duplex.