I’m just giving credit where credit is due. 

I haven't spoken to the county yet, but will make that phone call today.As far as financing -- I was leaning more towards getting a business line of credit or using a business credit card and rolling it over to interest free cards.

Should I follow through with background checks and credit score, waive the application, or something else?

Keep your payment at no more than 35% of your income and minimize your credit card and auto debt.  

Their price structure is probably different but I would use any free consultation available with all law firms that are specialized in asset protection before deciding what structure to use.Also this firm and one it’s lawyer (Clint Coons) have great YouTube channels that will give you a plenty of free information to educate yourself about some of the structure that you may consider.

I'm a Project Manager at an Architectural Firm specializing in Custom High-End Homes. 

Seller financed (probably) won't be reported to the credit bureaus and so won't impact your credit score at all.

The fees for us to do it were $492.50 and you can see the lender credited those back to us. 

im in Orange County CA and there is a huge market here for room by room rentals here. i've been doing this for quite some time (over a decade now), and it certainly has its pro's and cons. my advice if you go about this is make sure you do proper vetting before moving someone in... not only for financials/ credit-worthiness, but also for temperament and expectations in a co-living space. we ask a lot of questions like "how do you handle conflict?"

I own the property free and clear and i use the equity as part of my business line of credit.