Typically split commission with broker as part of the working arrangement.

Set very clear expectations, since they're living in the house with you think through how you expect the arrangement to work and make sure that's communicated to prospective tenants prior to move in.

Without a signed living arrangement with you that bridges past the closing, this person is clearly a squatter.

So it is up to the landlord, and in their best interest, to work out an arrangement if the tenant does provide proof of hardship.

I haven't thought it through in detail, but I'll need to have some mechanism in place where if a tenant reaches some amount of gross revenue per month, that this arrangement automatically terminates.  

You are missing some expenses like maintenance and cap ex, vacancy for the downstairs arrangement or for the entire place if you plan to rent out the part you currently occupy. 

Properly arrange pillows on the sofa, take wrinkles out of bedding, unplug and hide an electrical cord and make an effort to de-clutter the room for a clean marketing photo.

If you're just looking for someone to open doors and manage maintenance calls this arrange might work for someone unlicensed and 1099, but if you want someone to take over all the management activities it might be difficult to have them be 1099 and unlicensed. 

You can offer to buy the home and rent it to them or you can offer to fund them or you can suggest a JV arrangement.  

The arrangements can be complex though.