Step 2, Review your household expenses and find ways to either cut unnecessary debits each month.

Your thoughts and suggestions would be greatly appreciated.FYI: we will be still working on our current jobs with the annual household income $120k and would like to have enough money to support our two kids when they are in college in next 7-9 years from now.Thanks,Petalpha.

We will be a dual income household in January - She just got out of school.

Lending guidelines say 43% debt to income ratio, so if no other debt, a factory working household can spend $2200 a month on a house. 

You will meet with each household and introduce them to your management style and written rental agreement.

Legally, business purpose loans as these are pretty straightforward.If you are talking about making second position real estate loans for personal, family, or household use (HELOCS for example), which many above seem to be addressing, then DF, the Safe Act, RESPA, TILA, and everything else applies and you'll need the full complement of Broker, MLO, and NMLS licensing.

Work backwards from there and say okay I want 250/mo free cash flow from each property (use some of the calculations to give you a general idea of what your costs are, and cross reference those Median Household prices with places that generate the right rent numbers to make your search a little more specific.  

I also obtained the age of 162 people, household income on 130, and the occupation of 83.  

Sorry if this comes off as blunt, but...I wouldn't get into this type of situation with a family member, unless you're willing to risk the peace in your household. 

Also note: My credit is steadily going up, I will be at a 700 in no time, I don't have much of a savings, but I do make small deposits bi weekly to keep a trail that I CAN save, and no huge debt ( just a small secured CC ) aside from normal household expenses/bills.