The logical solution is that market rents be adjusted to account for landlords additional cost.  

I have heard of the benefits of house hacking, and certainly will be looking into that.

Private real estate offers many benefits to individual investors, such as high returns, portfolio diversification and tax efficiency.

It benefits both of you to have him move out, and upon a satisfactory inspection of the property, he gets his deposit back.

Who benefits from the Estate?

Long term commercial debt lenders make adjustments but does not generally follow that.For high quality assets i am currently seeing about 4.8 percent for 10 year debt. 5 year fixed I am seeing about 4.5%.If a life insurance company they can go lower on rates but want minimum 35% down and more picky on the properties to lend on.Seller financing can be great BUT just remember to not way overpay for an asset just to get that.

You only include the 1099-G amount into income to the extent you received a tax benefit for it. 

How do you communicate with your spouse the benefits of investing in rental properties when they are as conservative with money as it comes; like let's sit on $50k cash conservative?

There is NO benefit for you to take that money up front, but they know that flashing a fat stack of cash will throw some people into excitement.

We use that report to reconfirm or adjust our original estimate.Go to local REI club meetings or meet-up groups to find investors willing to show you the ropes.