Yes freehosting is the worst don't go there I cannot even comprehend how the servers are paid for, for anyone who offers that i am sorry but again the maths doesn't fit, and even if you do your rules are too tight that no person having a website can rely on the services.
Regarding what fiveacehosting put on the 2nd page, I know where your coming from i really do and even now after 10 yrs of hard work im not breaking even from the hosting point of view and taking any lead I can, but what i understand and is commendable in my opinion your willing to do anything to put bread on the table for your family, although i live on my own in a flat i rent monthly i would do anything to keep my servers afloat for my clients which is why my design sustains my servers, i would even take a paper job if it helped which you should do just to feed your family and keep your server running if you feel that way.
I have said in the past i have been advertising in a huge uk magazine and that alone costs me £400/pcm (800usd/pcm) and i have done that for 5-6 months, and then i have other advertising and ventures which cost me which is a lot more than what you have put in to the hosting business.
Just because you have put it in, it doesn't mean you will get that out thats business unfortunately your best way to do it is go locally and advertise your services rather than thinking big, after all a person discussing it 1st hand will have a greater possibility giving you the money to host their site or design their site for them. I think you need to come across as not needy as you are then you should be ok.
Back on topic do a google search go to ebay sell servers you have found which are cheap but add some profit in there for you and a offer of maintenance so you could get unmaintained servers and maintain them, you can go directly to the companies and say if i bought x servers from you can you give me x discount, remember the times maybe bad for you but are also bad for us all so can really companies afford to put their pride in the way and say sorry we can't, so these times can work for your advantage, just think positive  .
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