Our idea is to convert part of the home to a Jr Adu and get rental income that will offset the expenses for dear dad and let dad live rent free.  

Would you just leave out the income requirement since the housing agency is covering the rent?

In these cities, your financial resources will go a long way enabling you to assemble a diverse multifamily portfolio and initiate a steady stream of income.

A reverse mortgage can be paid off, but the parents may have trouble obtaining financing as typically a reverse mortgage is received when borrowers have trouble making monthly payments and have little income but lots of equity.

I owned a 12 unit apart building in a very low income area with all section 8 tenants.  

One additional detail, what if one of the partners has and existing LLC and the other does not?

Supposedly that Mediterranean diet will help your brain health too.Only 20% of the US population smokes and that decreases as income goes up so I you probably won't see alot of smoking investors.

The former is valued based on the income approach and the latter based on comps. 

Not for me, I wouldn't want to be forced to distribute 90% of taxable income  to shareholders.Private fund?

@Terri B.To increase your Cash on Cash return on investment, it may be beneficial to use debt to obtain income and asset appreciation with less cash expenditure.