We now rent that house and have purchased another, but with baby #4 due in a matter of weeks I think our house hacking days are over and we have to figure out another way to buy more properties.

When first baby came and needed a bigger space.

I have several family members who under report their income - hair stylist, cab driver, etc. so that is not uncommon when your income is a cash transaction.Thinking out loud: you could offer that rent be paid bi-weekly?

You do not have to pull out your hair, stomp your feet, or scream, simply discuss things with your contractor and if they feel they can guarantee their work they should have no problem assuring you that if you have quality problems with their work that they are willing to stand behind it and will take care of anything for you should the need arise.

Hi Michael J,Read and study that info and live it baby!!! 

Baby steps, my friend. 

I know the ALFs are heavily regulated - not sure to what degree here yet, but that will definitely be on my list of items to research.As the baby-boomer generation continues to age, I know both types of facilities will continue to increase in demand. 

You get your original capital out - no money down baby (and you have infinity cash-on-cash return) and you get $500/month truly passive income (you're not responsible for maintenance, repairs, etc since you're not the owner...you're the bank).The downside: after 2 years, you no longer have any income.

Other occupants would be the ladies 20 year old daughter who was very nice and her 7 month baby.

Like others mentioned these are the same people I happen to run into the few times I get out to the bar ( apearently enough money to buy drinks for a night and hire a baby sitter for her 3 - 4 kids).