@Mark Small, you’re on target that standard VA home loans are intended to put military members and veterans into move-in ready homes that don’t require significant repairs.There is a separate loan product called the VA Renovation loan, which essentially packages a home purchase loan and a home improvement loan into a single product.  

You wouldn't be able to purchase a MFH unit as separate parcels.I'd recommend gifting her the down payment and she can just buy the property on her own.

There is no way to completely separate it from the main part of the house, as it also has the laundry machines, furnace, electric panel, and storage areas I need to access.

One of my investor friends advised me that SFH aren't under rent control (for now) and that if I have a tenant that tenant becomes the Master Tenant and collects rent from other tenants (the roommates) with a written agreement, no separate leases with me and the future roommates. 

For other readers, running the LLC accordingly and separate bank accounts/ accounting, etc, plus strong property insurances, auto insurance and umbrella insurance is what you are referring to?

Historically, members had to file, manage, record, and report each LLC separately which meant more paperwork, more cataloging, more expense, and more reporting.

My plan is to sell within next 2-3 years to avoid the capital gains tax and move than money into 2 separate properties. 

If the owner has to pay separately for scavenger/waste removal, and if you need lawn maintenance and snow removal, include all of that.

If you have enough that you can buy a separate rental property, I would do that and rent it out to non-family members. 

Hey BPI have separate LLCs for my properties.