Not practicing law in your state though, so you need to consult a qualified lawyer in your jurisdiction to see what to do

Just because a technique for acquiring or earning money is popularized by gurus and practiced unethically by the gurus students does not mean that the technique itself is a scam, unethical, immoral, or that the participants aren’t honest.   

Just seems like an odd business practice to shovel everything under the rug.

Quote from @Felicia Richardson: Quote from @Jonathan Greene: It's possible, but not always practical.

Does anyone have any practical experience with similar situations and if so what was the outcome and how long did it take to resolve everything?

Besides the failure rate, wholesaling is legal when done right, but most programs teach you to practice real estate without a license which can get you in trouble. 

Unfortunately, renting in the far-left wing states allows tenants to be treated in a manner that far exceeds ethical rental practices. 

This is not a great practice.

The HELOC option seems the most practical, especially given my current rent level.

Keeping them in the loop could help avoid conflicts or complications down the line.Lastly, think about framing your case around fairness and practical impact.