Be sure to research rental demand, zoning laws, and financing options before deciding.

If you don't have free cash available that limits lots of options, but if you do, that is another story. 

New construction can be a very attractive option in certain markets.

When house hacking, consider the area's average rents, property values, and financing options, such as FHA loans or conventional loans, which may require as little as 3.5% down for multifamily properties (if it's owner-occupied).

If this effort gains traction, it could fundamentally reshape the U.S. mortgage market, impacting financing options for real estate investors nationwide.The Role of Fannie Mae and Freddie Mac in Housing FinanceFannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are government-sponsored enterprises (GSEs) that purchase mortgages from banks and lenders, package them into mortgage-backed securities (MBS), and sell them to investors.

Any insight into the kind of options we may have for something like this and how qualification for a small hotel differs from residential conventional loans would be extremely helpful.

What about LaZBoy is that a decent middle of the road option? 

With a family and kids the best house hack is a house and cottage or duplex option.

Giving potential partners an option.

Taking a deposit to secure the deal can be a good option, as it shows the buyer is serious and committed while also giving you the time needed for the 90-day rule to clear.