Regular tenants may have more of a support system when they have bad financial luck.

Sounds like they are dumping a bad 1031 property into a REIT and spreading the financial burden upon existing REIT members. 

An article from The Mortgage Reports explains:“The amount you need to put down will depend on a variety of factors, including the loan type and your financial goals.

HELOCs are not available because they are residential loans guaranteed by individuals and what you seek is a type of commercial loan or credit line which are available to seasoned companies with proven financial track record.

If you don't want that, I would sell it or put it into storage (which may not be financially feasible), but long-term renters are hard on furniture that is not theirs. 

Maybe pay a financial advisor for an hour of his time first in case there is an alternative that you have not seen yet?

If a tenant (friend) needed to move, I wouldn’t want to be in a bad situation financially.

Apartments, Student Housing, Self Storage, Commercial, etc.The SEC classifies a DST as a security so they must be purchased from a financial advisor.The costs very A LOT by financial advisor and DST Sponsor.

If a tenant (friend) needed to move, I wouldn’t want to be in a bad situation financially.

If multifamily properties in your area are priced well, it might be worth moving forward sooner rather than later.Risk Tolerance: Since you’re the sole provider, it’s crucial to ensure you have a solid emergency fund to cover unforeseen expenses, especially during vacancies or repairs.Long-Term Goals: Think about how this investment fits into your long-term financial goals.