Partnerships can be great, especially when you have complimentary skills/knowledge/ or funds that may be the other people's missing piece to be able to put together the puzzle (or deal!).

I'm I missing something?

Is there anything I’m missing here?  

When your tenant misses payment or breaks an agrrement stated in the lease, they essentially are stealing from your business wether intentional or not.

We're getting back on our feet but we missed/were late on many payments for the rental, which ironically is the major reason my credit is so bad at the moment.

@Josh EdelsonHopefully she is amending your return at no cost if this was missed by her.Given that you have properties in MO, IN and SC may expose you to tax filing obligations in those states. 

So now, when I go to the bank to get a home loan I would have a bad credit score to start with because of using good chunk of HELOC credit (either I would end up with a bad interest rate or my loan or not get a loan)Am I missing something here ?

Also, if they have owned for a long time and don't plan on buying more rentals ask them if they will miss the monthly payments coming in. 

So now, when I go to the bank to get a home loan I would have a bad credit score to start with because of using good chunk of HELOC credit (either I would end up with a bad interest rate or my loan or not get a loan)Am I missing something here ?

Most accountant's miss this step as they don't have k-1 investment experience.Regarding how it will be taxed, each k-1 syndication is different.