My plan is to start house hacking.

Quote from @Vid Vin: Was the house really for 2000 dollars?

If I were in your and/or your mother-in-laws shoes, I would go to a local bank and use the free and clear house to secure a $150K+ line of credit. 

new houses are getting sold for 600K, old houses switched to multiple offer selling model, just like some places in GTA.

Ownes his own house and 2 rentals that is in an LLC.2. 

Purchase price: $110,000 Cash invested: $45,000 Recently purchased my first house to use as a primary residence, currently I am renovating the kitchen and adding a full bathroom to the first floor.

Quote from @Robert Ruschak: Would you skip the 700+ single family houses and scale up faster into multi-family?

My interests especially lie with multifamily properties, house hacking, and fix & flips.

Because of the frustration, when asked to purchase the large lot in front of their house which leads to the main road, they turned it down.

The idea of raising funds from new investors to get them involved in selling lease option houses to tenants does not pass the sniff test.In a nutshell, this is why lease option is so terrible.