That is a super bonus to anyone with kids. 

For bonus points, how would one break this out on their schedule E, list the one property and combine the financials as if it were a multi-family property, or should I be listing each unit individually on schedule E with its own financials?

The property was under contract but the contract fell through as the seller would not be able to get the property rezoned and turn the large bonus rooms into another unit, making the property a quadplex.

I just remind her this is a long term play for early retirement and we really don't need the money today. 

As a bonus when you have that string of properties and show good cash flow from them, when it does come time to go to a bank at or near 10 doors the bank will see what you've got going on and then they'll be more eager to lend to you. 

If so, it could be more of an appreciation play.

And an active market always appreciates more.For you there is a huge added bonus of confining your search to tax free states. 

AND Bonus 6 don't get discourage when networking and meeting more successful RE investor always you will encounter  someone better than you in X areas of has 100 units or flips multiple props a year. 

Maybe play dumb a little "I don't know if I'm in the right place..."

@Scott Goulet doesn’t your homeowners insurance come into play here?