Our first accepted offer was a 320 unit deal that we contracted, put up non-refundable (yeah, I know) earnest money, and thought we had our financing and money in place to do the deal.  2 weeks before closing a major (several million) partner pulled out leaving us short of the funds needed to close. 

You put a 3.5% down payment on a house that goes up 7% in 12 months you just made a 200% return that didn't take any large amount of skill or time.

I talked to my lender contact and, as Kerry mentioned above, it's pretty uncommon that a traditional lender would offer a HELOC product on an investment property (non-primary home). 

If you are in a state where eviction cost is high and it is tenant friendly you may need a higher credit score to offset default risk and eviction cost.If you are in a landlord friendly state where it is easier to get non paying tenants out you may be able to handle more none payment risk.  

And, even if he has real estate clients, doing a tax return doesn't really educate one.

While this would not necessarily result in immediate taxes (because it can be offset by your lifetime gift and estate tax exclusion), a gift tax return (Form 709) would need to be filed.

Not just a non licensed investor. 

You need to understand how to drive the Net Operating Income to produce a good solid return. 

Your thought to move that portfolio out of state (and maybe a retirement move to a non-taxed state) would be very timely right now. 

I've been through situations like this.Hopefully the family pays rent and this becomes a non-issue.If they don't pay the rent, you need to be understanding and kind, but firm.