When we compare the condo rentals to that of our SFH rentals, condos are cost effective and a lot less maintenance. 

https://www.biggerpockets.com/member-blogs/10042/64779-8-ways-to-effectively-hunt-for-your-vacation-house-4-free

Tenant is incentivized to keep the apartment clean, ready to show, grant access, etc.

I think there are some tax effects to a HELOC vs. a traditional mortgage, in that HELOC interest may not be tax deductible. 

He wants to buy the property himself but he says needs about 1 year to clean his credit record to get a loan.

In the situation you're describing it take me 4 days for a 2 bedroom 1.5 bathroom unit unless I'm replacing floor covering in which case it's usually a full week and maybe almost 2 weeks.In 4 days, worst case 5 days, I can get a thorough cleaning and painting, inside and out, even removing doors from hinges if needed.In that time window I can also have a plumber replace a faucet or an electrician replace a bathroom vent fan, minor stuff, if needed.

There were a small amount of negotiations around securing tenants in the downstairs apartment at the price they identified and cleaning up some odds and ends (asbestos abatement, fire safety items, etc.)

It's not in a bad spot... close to a grocery store in the back of a suburb a little ways away from a clean river, fairly scenic area. 

Just to make sure we have all of our bases covered, we've also sent a certified lease termination notice effective for her scheduled move out date just in case for some reason her lease falls through we won't be delayed any longer.  

These blinds hold up better, are easier to repair and clean, and I think look nicer than mini blinds.