You'll need to be more equipped, you won't be able to handle a capex and tenant issue in the first 12-15 months. 

It was a large flip project (original budget was $110k renovation costs) that went way over the planned rehab time as I had many issues with the GC I used.

@Michael Willis, Hey Mike,  I just did a quick scan of some old posts and as of a year ago the company was issuing K-1s which indicates that there is an entity that owns the land/project and the investors have an interest in the entity. 

What, if any ways have you all dealt with, mitigated this issue? 

It will cost more, but the last thing you want to do it buy a property and the pipes burst week one and you don't get any insurance money to fix the issue.

Many issues to consider here regarding the mortgage, if PA had a real estate transfer tax issue with this, if there any deals in place that would restrict you from doing this, getting permission from the bank to do this, annoying legal fees it will cost to do this...3) The partners then distribute their TIC interests in this land into the New LLC. 

I have plenty of equity in the home so that should not be an issue, but I am a bit confused on where to search for investment property HELOCs.

I hate when PMs suggest pricey work for an issue that might be solved a cheaper way (before the naysayers jump on that I’ll say we keep our properties in great shape but we’ve had managers who like to spend well beyond necessary.

Maybe he can purchase equity too instead of just issuing the loan, or both.

Seeing as he is getting a construction management minor, he is very aware of code issues as well as costs.