I let my emotions get the best of me immediately assuming a worst case scenario.

My question is should I take the money I have and pay off the Heloc and then when everything is sorted out borrow the money for the building, or just keep making payments and wait it out?

@Devin Voelker,Like @John Mason asked, check to make sure your comps are solid, maybe even price in the worst case scenario for a rental. and see how that affects the numbers. 

Many times they will claim it's wonderful and then try to hide their worst deals by only showing completed deals.

Which is why we see all the "real estate investors" not really making any sort of meaningful cash flow.

Wondering if there is a way to move him out, take over the payments, rehab, list, and do some sort of profit share at the end of sale.

There are forms and templates and all sorts of things that when used will make you into a well-polished 'litigant'.Of course, a competent real estate attorney can accomplish the same thing for 5x-10x more than the cost of the course, in exchange for peace of mind that you'll get what you're looking for without the prospect of making a mistake or not knowing what you're doing.

I ran the numbers on some properties and they meet well above the 1% rule, but that sort of worries me...

The worst are three person partnerships.The most stable are 10 or more.

We found evidence of mental health and familial issues, all sorts of debt, IRS issues, and even YouTube videos showing a life in disarray.