Without the ROBS structure, an active business is a stretch to qualify as investment under plan rules.Now welcome to 2018/19 and we have QBI that's under some circumstances taking what was previously undeniably passive income and calling it "qualified business income".  

Imho That’s for extenuating circumstances not a no -obligation time frame where the tenant can just hang out and not pay till he feels like it .

@Dorian Guin I think in the circumstance you have is once you use those HELOC funds, how quickly can you pay them back?

Again, a tax CPA/EA who understands your facts, circumstances, and goals will be able to help out here.

I wouldn't agree, under any circumstances, to purchase until the tenant is out, and an inspection of the vacated property is performed. 

It takes time to adjust to new circumstances.

@Jesse ClarkIt's a good question for your CPA who knows your facts, circumstances, and goals.Generally speaking it's not advisable to hold appreciating assets inside a corporate tax entity, whether a C Corp or S Corp. 

Dave Godfrey Just as you would with the profit split, make sure to draft up JV terms on how a loss will be handled if the unforeseen were to happen.

I know there are endless options when it comes to investing in real estate, so what I’m really asking is, generally, what would you do, given the equity available in these circumstances?

I've found most investors in this circumstance don't want to take the property back and instead want their funds to be liquid and diversified.