You think my friendship is free?

Not only will you get a better understanding of your market but this can lead to new deals, new partners on deals, friendships, etc.

But don't come to me, ignore my friendship, deliberately start something, and then expect Queensberry Rules.

I've been able to make important connections and friendships through the meetups in my area.

I own a condo (with parking spot) one block away from the Wharf that I rent to her for $200 (friendship discount).

I’m currently interested in finding hard money investors or creating a friendship with someone who would loan me the money.

If you search the site for "private lender vs hard money" you'll come up with a number of threads that discuss the difference, here's one https://www.biggerpockets.com/forums/49/topics/72685-private-lender-vs-hard-money-lenderFrom a borrower perspective it's all about the cost of money (points, rates, terms) and the risk level (will they foreclose on you, will it ruin your friendship).  

I would never have imagined that someone in his position would be trolling the forums of BP, but since that call we've developed a personal friendship and a business relationship that has become one of my largest investors.

So, as suggested, I'd just tell your friend that you're sorry, but you have a policy of never renting to friends or family, because it inevitably hurts the relationship and your friendship means too much to you.They'll try to make you change your mind, probably, but just do the broken record technique - keep repeating yourself.  

I know you are friends now and I hope you are in 30 years, but you'd be surprised what can happen when you mix friendship with business/money sometimes.