Keep in mind you don't have to sell at a defined point (say 5 years). 

In the end, I feel that these costs shouldn’t be considered unless they are excessive, however one would define that.

I'm not convinced any of this is really about helping people or providing "affordable" housing, however that term is actually defined...  

A draw is just a pre-defined agreed upon payment. 

Equity isn’t defined by the cash you put in the deal.

(1) Any person who as owner or lessor performs any of the acts defined in KRS324.010 with reference to property owned or leased by him or to his regularemployees, with respect to the property so owned or leased, if the acts areperformed in the regular course of, or as an incident to, the management of theproperty and the investment in it

Here is your definition of absorption rates in real estate: The absorption rate is defined as the rate at which homes that are available in a market are sold over a given time frame.

If your criteria is not defined enough to cover this situation ( xTimes income, qualified # of income streams, credit score, employee status (W2/1099), employment history, employment type) , then this is a great opportunity to understand your risk tolerance and put some measurable boundaries around them.

It is also important to define the level of risk each party is taking, and the level of compensation for that amount of risk. 

Under Regulations 1.121,"A property used by the taxpayer as the taxpayer's residence may include a houseboat, a house trailer, or the house or apartment that the taxpayer is entitled to occupy as a tenant-stockholder in a cooperative housing corporation (as those terms are defined in section 216(b)(1) and (2)).