I assume that investors are periodically checking their properties in-person, but how often in your first year?  

I've looked into HELOCs, but the fact that they have the repayment period and variable interest rate isn't going to help me out with cash flow when it comes to the high Los Angeles pricing.

In the end he cannot keep it if you inspect the property and do not like it, as long as  you do in the periods specified, otherwise w hat is the point of the inspection? 

Extend the inspection period and make them get the water on.

I don't know if you knew this already, but if you live in your house for 2+ years, the capital gains earned over the ownership period is TAX FREE!

Large commercial projects, unlike purchasing a SFH, are not a learn by trial and error type situation.

Since I've only had this property a short period of time, should I claim depreciation to improve the cash flow after tax or refrain from doing it? 

After my first 5 year interest term was up, I went back to a 15 year period which added about 2-3 years of payments on it but the bi-weekly payment dropped about $150. 

So you couldn’t have an agreement where they required you make the property available a certain period of time or you would be violating the agreement.  

But I would be leery of funding the project on a buy & hold.I guess my question would be if there are many potential partners that would want their money tied up for an extended period of time?