There is also a defined list of who else cannot benefit...your spouse, parents, etc.

Some are calling this a water test while other sources clearly define this as a hydrostatic test.

I also think that you need to more clearly define your objectives and criteria.

Can be by marriage "A gift can be provided by: a relative, defined as the borrower’s spouse, child, or other dependent, or by any other individual who is related to the borrower by blood, marriage, adoption, or legal guardianship; ora fiancé, fiancée, or domestic partner."

@Jorge Roman I have a written paper that describes and defines routine maintenance, urgent maintenance, and emergency maintenance that I give each tenant on move in day.

The broker/agent decides if they want that business model or will stand for something better and define their ideal client and attributes.Then use a marketing campaign to find your ideal clients just like investors use funnels to find deals.The more I have defined my ideal client over the years the happier I have been and the more money I have made.

You would be able to set up a more clearly defined exit strategy because the seller wants to get out of the deal anyway.

Also define how long you expect to hold the property, what the income / equity splits will be.

Doing business in California", as defined by California, does not mean merely having a business entity organized or incorporated there. 

That alone is a pretty solid contract.Of course it's a great idea to "paper up" to make sure everyone is covered, and would definately be the better setup for a long term arrangement.