great advice provided - what I will add to this is if you have smokers and its not allowed I would offer to allow them out of the lease with no penalty. 

So @Mike S. is providing the perfect solution for you. 

Spreading funds across 2-3 properties could provide diversification and steady cash flow.

I was thinking if I can talk to my neighbor about sharing the cost (I, the landlord, personally provide labor and my neighbor provide material (e.g. fence pickets)).

I can see how starting with a 4-plex could provide better returns and learning opportunities without an overwhelming jump in complexity.

Where to get the most recent and accurate data for things like:Unemployment dataPopulation growthJob diversity and top employers in the areaVacancy rates (eg huduser.org)Property taxes and jnsurance costsI saw bp pro and reventure and a bunch of other websites provide some of this data, but i wonder how accurate and recent it is.

Please note the information provided below is a layman's definition designed to provide a basic understanding for the general audience.

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

Big things is be realistic on timing and maybe provide a mover and or storage unit deposit as they may not be able to figure that part out on their own.

Thanks in advance for any help you can provide!