I like to be up front - personally.

In addition, they will need space in the common areas for their stuff as well (think refrigerator & pantry for food, etc.)No background check will show how clean they are, how they respect your space, whether they are a loud person, or a night owl, who they invite over to stay with them and such.  

I've made many great connections, educated myself on topics I didn't know existed before and have taken actionable steps in my personal investing business that I wouldn't have done otherwise. 

As we're running out of personal capital to continue acquiring with, we're exploring a structure where we give investors an 11% preferred return that we buy them out of in 7 years.

Some you will like and some are very 'pitchy' selling all kinds of classes and junk.Meeting people in person and getting to know them and what they do will help increase your knowledge that much more.

Personally, I'm not a fan, but I could see why some people like it. 

@Kiefer Cheney your best "farm area" is your personal network!

He is not in a position to begin lending money for several reasons.I assume the HELOC was made against his personal residence.

The questions you are asking are far to vague for anyone to have major input or guide you correctly as each person's situation is different. 

You aren't the first person to suggest it, however.