Both offered up to $40k, 12-14% rate which is higher but not bad for an unsecured personal loan. 

It started with really buying my own personal home, then selling and making a small profit.

I know i personally wont build anything with adjoining walls as the long term liability is to much risk for me.

This might give a one-time (non-scalable) boost to cash flow, offer multiple value-add options, and allow the house-hacker peace of mind, via the assumed mortgage, in long-term breakeven or positive cash flow in the event that the value-add plans end up not being executed, and/or the person has to move out, and rent by the room or STR become unavailable for some reason at a future date.

I personally invest in the North Dallas area (Prosper/Celina) where there is lots of growth in homes with nice lots.

With respect to paying $44k off on your HELOC, I personally think that is totally fine and a great start. 

Don't spend time looking for something that doesn't exist. also in the US you cannot sue the police.. unless its a direct assault on your person. your wasting your time.. 

And does the person doing the labor get paid or only the materials paid for by the partnership?

Personally I never listen to what the seller states the income is as they are sometimes way off.

Yes I have owned 4 personal homes before but never an investment property.