Meet other investors in your area and stay in touch with them; you can ask them questions that might prevent problems.Best to you!

What prevents them from doing that?

And this low demand could be a couple of factors, either a rural location with low population density or the area incomes are not high enough in order to prevent a rent burdened scenario. 

How are they going to prevent move-outs and extend my occupancy? 

However, federal securities laws and SEC regulation require providing investors with accurate information regarding investment risks, details, and fees to prevent fraud. 

This would also prevent me from using the HELOC for a different type of investment like BRRRR or fix and flip.

To be transparent, there is not 100% full proof way of preventing fraud.

However, nothing prevents two parties from owning % of that lot and living in each building (one in main and other in ADU), creating tenants in common.We may soon see the first individually financed (30 yr mortgage) ADU in LA this year and it will be very interesting.

The rules are designed to prevent related parties from engaging in exchanges that shift high basis property for low basis property, followed by a sale of the low basis property, effectively "cashing out" without recognizing gain.If you sell a property to a related party as part of a 1031 exchange, both you and the related party must hold the exchanged properties for at least two years following the exchange.

It also prevents you from making the #1 noobie mistake, which is buying in the hood just because it's cheap.