It also likely puts the onus on tenant to ensure payment arrives.Assuming your lease is solid, "let her go" is not the correct process.  

Be careful with Camden and Mercer counties, these are commonly found on lists of most at-risk markets in NJ relative to price corrections. 

There is no real estate investing culture either.I would like to be corrected if someone disagrees ;)  

In a Seller Financing deal, once I start paying the seller the interest-loan + mortgage, the equity being built should goes to me and not to him correct?

Bruce is correct.

It's ugly and it was all a very expensive lesson on how to vet GCs and how to develop relationships with the correct ones. 

The HELOC would be a variable interest rate, correct?

We face similar heat waves here in College Station, TX.

And, no issue should arise if closed and managed correctly. 

As the the lines get blurred on who is interpreting the definition of these terms correctly, the desire from the owner to update a property that from the naked eye needs work should be absolutely heard.