I personally like Alabama and Tennessee a lot, depending on what specific area you're looking at.Look for Class B or C properties in stable rental markets, particularly single-family homes or duplexes.

I personally would revisit your strategy of buying a negative cash flow property in SoCal, right now.

Id have a lawyer on hand, this person seems like they will escalate issues once you notify them you aren't renewing their lease.  

Networking is the key to growth...I am always down for coffee if you want to connect in person. 

I personally do not touch equity in my own home to incorporate into my business.

To Sum it up, its a good idea if you can exceed the cost of capital (higher rate than your cost of debt) with what you earn on your heloc/debt you pull out and invest.The question is how much gains above is enough to substantiate the risk of your variable interest rate, well thats up to your personal investing criteria.

It actually says “Loans to Partner (or persons related to Partners)”.

So it's just personal preference and budget for a host.

Then they receive the money and you still keep your money and earn money on it.

@Antoine Black  In general, yes, it goes off your personal credit.