Leveraging a trust held free & clear rental property

[Ken T.]

Hello BP!

My family and I have three properties (1 primary, 2 rental) held in one family trust. They trust my methods and are allowing me to leverage the equity to invest in real estate.

1) Primary property was purchased about 5 years ago for $700k with market value up to $1.4m.

2) 1st rental property was purchased about 5 years ago for $300k, current market value is about $800k if rehabbed to sell. Loan balance about $200k

3) 2nd rental property was purchased 25 years ago. Current market value is about $1m, should have very little/low loan balance.

My parents are allowing me to tap into one of the properties to fund my fix and flips, new rental acquisitions or private lending. How could I go about this to maximize the opportunity? I did some research online and just came out a bit more confused than going in. 

Possible scenario:

I have a friend who is currently funding a flip with hard money, 2 pts @ 10%. They would be open to replacing that loan with a more favorable loan from me. How would go about structuring their loan replacement? I want to be careful and not make any mistakes with my family's money.

Questions:

Should I be looking to refi or a HELOC?

Is it possible to get a HELOC against a rental property? From what a Chase Bk rep told me, this is a no.

Should I use this equity from private lending for other people's flips or should I be purchasing properties in my own name? 

What else am I missing before I dive head first with other people's money?