However there is no formal lease in place.

I just cannot understand why he wants me to talk to a realtor that he hasn’t signed anything formally yet unless they are trying to be the “problem solver” as well.

@Tim DiMario- thanks and welcome ...I would recommend getting formally pre approved for a hypotehtical scenario with a lender ...This process will help get you organized / prepared and its free ...you will also learn a lot ....if you never  buy anything or dont buy anything for soem time - its  OK ...good luck

MN law also allows tenants the right to “pay and stay” if we begin the formal eviction process.

thanks ...if you havent already  done so - get a formal loan pre approval completed to make sure you have the financing needed for your plans 

It's all run under the table currently and haven't had any problems, but want to formalize this as a business to avoid any hardship down the road.I don't know how I should be protecting myself here.

First one would be Zillow Rooms - in terms of range and scope of audience.If you want to be formal and have great photos then try on coliving.com Also I believe that booking.com allows it. 

Not sure if its a regulation issue or what it is, but I've only been able to even entertain the idea of doing business with HMLs on the MN side of the border. 

I have been both formally diagnosed and medicated in the past for paranoia, and I feel I'M BARELY PARANOID ENOUGH for real estate.

However, we haven't provided any hard numbers or a formal proposal yet.