It is a line of credit secured by your home.  

Am I going about evaluating this the right way or should I be using other methods? 

All loans will have a security instrument and note.  

We've used Trulia, Zillow, Hotpads, Postlets, and Craigslist to post the ad, and we follow up with My Smart Move .com for the screening process.Is there a better site/method to your success?

Bandit signs are still an effective way to generate leads but it is important to be in it for the long haul and not rely 100% on that method alone. 

well it depends. if you want to use the brrrr method then the first option may be best for the refinance bit. however with a single family home you will take a bigger hit if they move out where as with the duplex if one moves out you still have half your income. theres pros and cons of both.

The best method I know is to post a 'real' ad on CL to explain what is going on (someone is posting your property for rent without your conscent) along with a link to the fake post and a request for the CL community to 'flag' the fake post.

In Ontario they take half a months rent for commission I believe (could be wrong about this).In terms of moving the tenants in and out for an out of province property I'd consider installing a lock with a passcode you can change digitally, that way it's as if you have a permanent lock box on at all times & you can ensure security by changing the code from time to time. 

I have an option to do a cash-out refi for a penfed 10 year balloon (3.875% interest, 30 year amortization) or a 30 yr fixed with a mortgage broker(4.75% interest) for my BRRR method strategy for a SFR rental.

Any suggestions on other methods, please let me know!