If you have trouble showing income and the property is non owner occupied, you may qualify based on DSCR 

Our idea is to convert part of the home to a Jr Adu and get rental income that will offset the expenses for dear dad and let dad live rent free.  

I owned a 12 unit apart building in a very low income area with all section 8 tenants.  

However, I would appreciate further clarification on what you mean by having a Plan B, C, and D.In my experience playing the BRRRR game on a smaller scale, typically with homes valued around $200,000, I have found that it can be challenging to generate significant monthly income, Instead, the focus is often on building a portfolio without having to make substantial out-of-pocket investments, which is indeed advantageous.

My goals have always been to build passive income leading to financial independence (which I've been fortunate enough to achieve). 

Would you just leave out the income requirement since the housing agency is covering the rent?

@Micah Markowitz I did look over the Midwest Corporate Credit website.

A reverse mortgage can be paid off, but the parents may have trouble obtaining financing as typically a reverse mortgage is received when borrowers have trouble making monthly payments and have little income but lots of equity.

The former is valued based on the income approach and the latter based on comps. 

.- We've upgraded 75% of the units with fresh flooring, paint, cabinets, countertops, and appliances as needed.When we took over the property the 16 units were producing around $9000/month in gross rent.I just checked our rent roll today, and we just crossed $17,000 in gross income monthly!