I do all future renewals of the tenants I place for free for all of my landlords.

My parents have a neighbor that he is planning to sell the property that he own free and clear.

A strategy we use is to offer to buy and close now and lease it back to them for free.

Not sure if the washer and dryer you are supplying are coin operated or free, but mine are coin operatedTenants pay for the utilities and it has been zero issue because I do not allow it to be an issue.  

I’m new to investing and I’ve been hearing cash flow is tax free.

It's free, handles rent payments/reminders/late fees, maintenance requests, some reporting (e.g., P&L), tracking expenses and income, rental listings, lease signing, etc. 

While there are definitely house hacks that have allowed owners to live for free and show positive cash flow the current interest rates and prices make those less common.

There will be a resolution, one way or another, say within 6 to 24 monthsPlease feel free to comment on anything above that does not make sense.Now my main question is: how are such notes valued?

It's a great book about how he became debt-free and started investing in house hacks.

Insurance Proceeds and Taxability: The insurance payout you receive is not "free money."