I personally have had amazing success with properties which are between 2 and 12 units, which most people would call “small multi-family.”

Appreciate if any personal experience can be shared that triggered the need.Thanks

It is my understanding that people refinance and then use those funds other ways (personal living, investing, some to buy another property) as a means to minimize tax obligation. 

I've used to it myself to analyze all of the 35 units I bought over the last few years and personally talked to 100's of other investors who've analyzed and closed on great deals using it.I'd love for you to actually try it and would be happy to receive and incorporate any feedback you have into future releases.

What made you think this person had no experience whatsoever and didn't own their own home? 

I've never done one personally but my understanding is it involves the home being put into a trust, with the sub2 purchaser buying the trust from you.

In the event that there is an emergency, the person would need to be able to exit the apartment via the window.

Quote from @Pixel Rogue: Personally, I think you are over-thinking this.

Some manufacturered companies treat it as personal property not real property.

depending on where you are in NJ you might have the Lehigh Valley in PA a couple hours away, or Delaware, etc. you can go to meetups, see places in person, and start to build a network.