N.J.
I got a license in the early 80s in Contra Costa county (nice people to work with) for day care in my home which was the next to the end unit in a town house with a very small front yard and tiny enclosed patio leading to the garage in back. There was a large green area across the road (used only by the people who lived there so very little traffic)
I actually didn't use it for all day care but had a little co-op play school for 2 year olds where one parent stayed and helped and the moms took turns. I didn't have young children at the time, my five were all grown. I think if you
offer quality care and there are opportunities for the children to run and get fresh air safely, you should do well. The licensing people can give you an idea of how much care is available where you live and what you need to provide.
Good luck to you and the little ones you care for!!
N.