People buy houses all the time without traditional jobs, but to do so they have to use non-traditional means.First, what kind of property is this: SFH, 2-4 plex, small apartment, etc?

I get that Redfin does not use the traditional methods.

Giving that up for an unknown seems more risky to me...Option 5 – You would need to be able to parcel the units out individually and your traditional lender may have an issue with this.Option 6 – Would $75k in profit fully pay off at least one of your first position notes?

The point is, in some states you don't have a choice. 

Renting in this market would be a poor choice. 

The house was big enough (and spread out well) that each family would have their own privacy.Unfortunately mom did not like the choice of husband her daughter made and commented about this. 

If they say refinance, it may be your only choice with them, or as Caleb said pay down the difference.

Would you recommend this option of 'passive' income over traditional RE investing?

Traditional Self Storage logic says your market is 1 to 3 miles. 

Would you do 20% down and finance with traditional loans or buy outright one property at a time and BRRRR?