However,  if I could generate some passive income and increase that over time,  I would be happy with that as well.  

Five units and above is considered commercial, which means that the income generated by the property being purchased is used to qualify for financing.

I would use the equity to purchase homes that would generate positive cash flow of course, but I am just looking for some general advice around the idea as a whole.  

Most of the Older Generations prefer MAX cash they getting at closing . 

I am looking for various ways to generate cash flow.  

We've also been running a few side businesses, but nothing that's generating substantial income.

Mostly for collecting information/data generating from my Yellow letters/post cards to start. 

That situation just moved dependency from parents to the government ( tax payers) I don't have an answer to your question....just providing information on the situation my tenants are currently in.Based on information I've read, when times get tough (recession), younger generations move back in with their parents. 

Perhaps you can generate better cash on cash returns doing what your talking about.

This allows the tenant to be secure in knowing what they are paying for and it's not a 'revenue generating' event for me like it is PM's and other landlords.My properties are pretty nice, in good school systems, so people have a tendency to be honest.