It sounds like you may meet the first requirement-being able to show that your current living arrangements no longer work for your family. 

I’m not sure where to look though because our lender is arranging the appraisal.

You can arrange a strategic agreement to utilize the MLS and get some extra assistance for the same price or less. 

So let it be known like you are doing and see if you can tap into both formal or informal arrangements.

If your property is not a high end property and you believe your average guest would not mind fetching their own wood, perhaps you could provide a reasonable starter supply and provide them with a telephone number of a local supplier that you have pre-arranged and would be open to delivering on short notice.

So overall it seems on the reasonable side of fair if you didn't have to do anything at all or spend any time arranging anything.

Wouldn't you guys stay a thousand miles away from this kind of arrangement in order to protect yourselves from litigation or being a labeled a bad actor by the SEC?

A good note broker will collect all the necessary documents and help out with all of the paperwork, arranging appraisals and setting up closings with tile companies, etc.

Our favorite guest, Renae from Mesa, AZ, always prepares notebooks with local interests, arranges discounts at restaurants and leaves personal notes for things that are going on in the area.

Just make it a part of the "roomate agreement" that either party can end the arrangement with very little notice if there are concerns.