To answer your question, a home daycare MUST be run from the home you actually live in. Otherwise, it would have to be licensed as a daycare center, and would be subject to all of the rules and regulations in the DNA (which are usually rather expensive, to convert a home to meet all the requirements).
Also, as an unlicensed home daycare, you mentioned "less than 5", but you can have up to 5 children in addition to your own.
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