When we bought the house we know one of our kids bedrooms was kind of small, but we figured we would take out a loan later when he was a little older to build a small room addition.  

Our only neighbors are two of our best friends and another guy we know through friends. honestly I hope she doesn’t die because I don’t want her kids or some investor or developer to end up getting the place and trying to kick us all out.

., trying to explore what our next step is going to be.

We assume since we still own this house and no short term renters will be sending kids to school, we can still go to the same school?

If your paying him $30 an hour and billing him out at $30 your kidding yourself into making a profit on the project .

If you are single, or married without a few kids I would recommend using your VA loan to purchase a multi-family home.

If it doesn't work out, you can retain the option fee and hopefully will have more options to explore once the lease term is up.

NOBODY, especially an agent would call someone and say “sorry, we’re turning you down because you have a kid”.

However, my perspective is limited, so I thought it'd be fun to start a conversation comparing the tried and true with the new kid on the block in this changing world. 

It would be a great opportunity to explore, and I think you are fortunate to have a property suitable for that particular operator.