Any ideas of how to find the best person? 

Although I'm sure there are still FSBOs to be found on classified sites I don't feel like sifting through 1,000 agent ads to find 1 FSBO.As far as I can tell it looks like most of the sellers who would have been pure FSBOs back in the day are now using flat fee MLS listings but the way our public MLS sites are set up here in Ontario there's nothing in the listing like: "Contact Seller Directly" to indicate which are FSBOs and which aren't.Tell me if I'm crazy but the best idea I've come up with to find what I think are likely to be FSBOs is to sort listings by high days on market and look for ones listed with an out-of-town broker.

Sounds like a good idea, minus the partnering with a friend part.

Any pitfalls to watch out for with tax basis, depreciation, or gift/estate complications down the road? 

That will give you a better idea if this company is working or not working hard for you. 

Is this a good idea.

Thanks I would suggest interviewing lenders now for a general idea on terms and then solidify an option once you have located a property. 

If you feel comfortable with this, you can also ask close friends or family that rent in the area what they are paying to get an idea 

Does anyone have any tips or ideas on what to search or look for?

Up until now I've always thought "I'll never have the time" or "I have no idea where to begin".