If you control how they perform tasks, set their hours, or provide tools, they should likely be a W-2 employee, requiring you to withhold taxes and comply with payroll regulations.

With future income you pay off that loan as well.

- Why would you expect a well-run, profitable PMC to work for free handling maintenance? 

They tend to cash flow really well ;) They cash flow well, but the rate of return is dramatically reduced.Assume a house costs $200,000 and rents for $1,500.

Can anyone recommend a good alternative to Quest Trust Co, now known as Inspira?

Staying local and house hacking—especially now, before kids—gives you so much flexibility to set yourselves up for long-term success.Your financial foundation is super strong, and house hacking a quad sounds like an amazing first step for you two.

There are some legal considerations as well as practical considerations 1.  

I know for sure that in my area of Texas (well outside of major metro areas), we've seen the cost to build new homes almost double in price. 

This process has been working really well for me.

Michael, that is not entirely correct.Some sponsors will set up a syndication investment/crowdfunded deal in a TIC or DST structure which can allow this.True, but it's done very rarely and for small groups, typically accredited investors.