Having two little children myself, I wouldn't feel comfortable sharing a house with a stranger, not to mention how hard it might be to find someone willing to share a home with a family with a baby unless the rent is really cheap.I can recommend two alternatives in your case.

Depends on the investor... can’t say, what are his other alternatives, it could also be a different equity split.

I’m kind of looking for alternative ideas for generating income from the money if I were to sell them.

But an alternative to consider if the banks are making it difficult is to establish medium term leases (month to month lease) with traveling nurses or other work related travel. 

If you just have 1 or 2 syndicates and don’t plan for a lot of growth there are cheaper alternatives.

He accepted, and that property now cash flows over 2K a month with some unbelievable tenants.And yes, things have gotten even more competitive since then, but I think the principal still remains.

Terms can range from: 5/1 ARMs, 10/1 ARMs 15-Yr Fixed, 25-yr, or 30-yr fixed (Yes even for commercial loans - but more often available through your non-bank or 'Bank-Alternative' lenders).If you have a portfolio of 15-SFR's with strong equity, you're likely looking at a 75% LTV max (assuming good credit >720-740+) with a non-bank lender.

There's been a lot of changes in the industry and many of us "movers and shakers" are working to legitimize tiny homes (and other alternative style housing) by engaging the authorities having jurisdiction as well as standards creating organizations.

Can you comment on the alternative of putting these expenses on a Schedule C? 

So, I am looking at alternatives.