No piece of paper will protect your friend if a child gets hurt. 

I got my problem with a child sleep over , they like to travel in luggage, when I found out there was 50+ found and killed   Between 2 mattresses I learned about them so I wouldn't be so creeped all the time "fear of the unknown "Extermination in my area usually run @ $1 / sq ft, so the bigger the house the more it costs, watch some videos and you'll see why so expensive but I guess that when things get really bad, took me at least 1 hour to do a room and that's with help, well hope this helps and good luck, let us know how things turn out 

The way to really look at this is the money going to you is a gift from your mother in law which after expenses should avoid any gift tax (currently 13k/year and going to 14k next year) when you include you and your wife and even your child. 

Plus, I feel a huge duty, responsibility and obligation to create multigenerational wealth for my child and my entire family.  

I SWORE I would never rent to a couple in their 20's again, child or no child involved.  

In our case adult female children had a tendency to pop out offspring as if they were a PEZ dispenser, often producing a child with every man they casually dated, then dropping off the children at "grandma and grandpa" to raise. 

This could be for child support/divorce reasons, court/criminal issues, etc.  

Adult, child, pet makes no difference and not relevant to Fair Housing.

My parents owned real estate when I was just a child which eventually I had a early head start of learning investing skill.

Nobody (accept me and a few others) tells their small child to grow up and start a business.