I forgot to mention that if you buy a HUD home as 'owner occupied', you are required to live in the home for at least one year before moving out (barring extreme unforeseen circumstances).

And neutral cash flow SFRs do not look like it manage that.So my extremely broad question is this: How do you accept investors and get a fair payout for yourselves?

Raising outward cash flow, via added debt of any type, without raising income is an extremely dangerous play for somebody in their retirement years. 

As far as how it has worked out so far, we are extremely happy we did it.

You loose a ton of efficiency and suffer an extremely reduced lifetime with only a fraction of an inch of scale.

I can see getting some fee for your time to rerent and lost rents, but 3X is the most extreme I have heard, leading me to believe it wouldn't stand up in court. 

Definitely having a 2 unit is the way to go though extremely hard to come by and competitive.

In my opinion, $200 per month, for a property in an extremely sought after area, with a tenant base that is extremely consistent, with military and government in the area not going anywhere, is a reasonable investment to stick with.I agree with @Russell Brazil, that you should hold the property in your portfolio.  

I was reading about it and it seems extremely similar to the 506b except has a limit on amount raised.  

My rent rolls would seem extremely high for the area if it was assumed that all the money was from one apartment, but it is truly income that is steady.