Just too many strikes against it at this point.

I suppose they could just go ahead and do this on their own without me, so it may not seem worth it to them to give up a big chunk of the profit to them.And lastly, would finding a builder, getting an estimate for the construction of new house and so on be done before striking a deal with the equity partner/lender, and before purchasing the property?

NJ strikes me as a tenant friendly state.

In other words, if you aren't hunting down and digging up deals, you are walking into the batter's box with a strike on the count before you start. 

I feel conflicted about late fees.I think the balance most owners (myself included) want to strike is to:a) make the late fee large enough to be a deterrentb) small enough that it doesn't create a big financial burden for the tenant.Since I am in Northern California the rent by itself is already a huge financial burden for many tenants. 

They under estimate one and overstate the other to make a deal look like a home run when it is usually a strike. 

@Austin RallsHavent done this, but honestly if you already know them, just strike up a conversation. 

@Jacob DanielsAs others have said, you should have credit standards and those should have objectively determined your answer already.Setting that aside, I see 3 strikes in the limited info provided: (1) the BKs, (2) a sub-600 score, and (3) no rental history.

Glendale is opening up the new Mattel Adventure Park and a ton of crazy resorts (one is a man-made beach) out in Westgate, so I completely understand the appeal and now would be the time to strike. 

Last thing I need is a ding on my credit and all of the nonsense involved in removing that strike.