Is this a right way to go about it or a bad way?

If not, I think if you try and piece this together you are going to wind up in a bad spot....

I did end up getting a commercial LOC from Kemba financial credit union but it was a lot of work to get it.

Hello,Just purchased my first small 6 unit apartment in Ohio, I have 1 vacant unit that I am looking to start showing but I read at somewhere there is a limit to the amount you can charge a tenant on an application fee for background and credit check that is set by the state.

Is this a good/bad idea? 

Which to me isn't to bad. 

Incidentally, it's too bad you didn't live in that property for one more year.  

$500 cash flow it's not bad. 

And you may have to replace/repair more when you turn over from tenant to tenant depending on how badly they treated your property and what kind of condition you want to provide for the next occupant.Good luck with it all.  

. - you could offer portion of the profits - i would note I think it is a bad idea and your better off getting hard $ and paying the contractor Family or friends and business do not mix well