@Michael Plaks comments in this recent post on making sure the person you hire understands real estate sounds really relevant to your situation.  

I agree with the person who said they are likely short of money and grasping at straws.

While I don’t yet have personal experience with a HELOC, I’ve thought about this one for my self many times.

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

There are quite a few solutions out there so that even the most tech challenged person can pay electronically.

Either way if you personally guaranteed the note, yes it will affect your personal credit no matter who the property is titled to.

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.

And considering I think a person who puts in plain black and white that integrity and character of the operator are key -- and then does something underhanded and incompetent is just mind-boggling to consider -- so I'm only left with a negative feeling about the documents these darned attorneys dream up! 

It allows tenants to increase their credit scores by an average of 60 points, and I provide it free of charge.I have over 600 adult tenants.

I suspect the person who originally turned it into a fiveplex only applied for permits to make a fourplex and then did the 5th unit fly by night (perhaps at a later date) in order so the property would still be considered residential and allow for better financing possibilities.