Provide them proof of your ability to find, fix, flip (or whatever strategy you plan to use), and then start with small amounts of their money.

If anyone has done this type of project before and has a detailed/itemized breakdown of project cost (invoice), I would truly appreciate if you can provide me with a copy and any guidance.thanks!

My goal is to establish mutually beneficial relationships that enhance both their careers and mine.I look forward to connecting with like-minded individuals and teams passionate about success in real estate.

Allocate equity based on contributions: you provide the $235K HELOC and management, while your former boss contributes renovation expertise and labor.

I don't understand if I count since I'm living in the property or if it's only the tenants that count towards the limit of individuals that are unrelated living together.

I think it depends on the individual and opportunity.

If it is someone you know you can give them a straight return as if its a loan - can provide a lower interest rate to provide upside - it really depends on the lender and what are they concerned with and what is their risk profile. 

If you work 40 - 50 hours a week in a full-time W-2 job I'm not sure how this would create a conflict with claiming that you meet the 500-hour material participation rule provided you are completing the hours that count toward material participation. 

BiggerPockets or LinkedIn can also help you connect with like-minded individuals. 

Even if one has to provide the education to some of the parties as to why a particular creative solution makes a win-win-win for all.