In order to get the childcare credit both spouses have to work and earn income. The "looking for work" part is often misunderstood to mean just seeking employment means you can get the credit. Not so. She has to actually become employed and earn income in order to qualify you to get that childcare credit. If she did not find a job and work, then your FSA funds will just become taxable income. The rental income is passive income and will not help you get the childcare credit. Sorry.
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