This deal proved to be the perfect balance of financial gain and personal enjoyment.

Personal guarantees are EXTREMELY common.

One-person rental units are in the highest demand, and co-living directly appeals to this market.

I got a deal on labor as I know the contractor personally and helped out a bit with the project.

Quote from @Sharon Bancroft: @Cameron MarmonI had this same situation and my tax accountant filed the change for me ( one time filling) and we now file it on our personal as a disregarded entity.

Personally I would pass but if you go forward I would do a lot of research on the group you are renting to and get a very large security deposit to cover damage. 

It's stronger in court if they do it, nothing personal.

We will shop for used appliances where we can when we need one… or pick up used cabinets if we can, or search eBay for something smaller,  but going to the extreme of personally shipping something big in internationally for one-off renovation needs seems like a stretch of reasonable.Just like you mention, the number of unknowns would not seem to be worth it to me.Just my 2 cents.Randy  

Sounds like the person knew what was going on with their credit report as they have filed reports in the past. 

This will allow you to remove the person and do the financing on your own.Home Equity Loan/Line of Credit: Since you're looking to access equity, a home equity loan or line of credit (HELOC) can be a good option.