record.js

//this controller is not being used because i am on the wrong route. 
import Ember from 'ember';

export default Ember.Controller.extend({
  isEditing: false,
  actions: {
    editRecord() {
      this.set('isEditing', true);
    }
  }
});

type.hbs

{{#each model.records as |record|}}
   <li {{ bind-attr class="isEditing:editing :collection-row"}}>
     {{#if isEditing}}
       <div class="form-group">
         {{input type="text" class="form-control" value="record.title"}}
       </div>
     {{else}}
       <span {{action "editRecord" record}} class="collection-row-title">{{record.title}}</span>
       <div class="collection-row-right">
         <span>Edit</span>
       </div>
     {{/if}}
   </li>
 {{/each}}

Looks like you might want an Item Controller although be aware that this will be phased out in Ember 2.0. Instead you could delegate to a component.

{{#each model.records as |record|}}
   {{record-display record=record}}
 {{/each}}

See this thread for discussion: Good way to do this in Ember 2.0