I have a home free/clear to use equity for rental down payments

[Erik Bergerud]

I (a trust) owns an LLC that owns a home (480k value) free & clear in WA state. It's technically an investment home as my dad lives in it and pays the LLC rent. Idea is to use some equity in the house to make a few $20 to $40k down payments on rental properties out of state (Kansas, Indiana). What type of equity loan should I be seeking? HELOCS, biz lines of credit using investment property as collateral, equity share loans, etc?

Seems once I've figured that part (tapping equity for down payments) out I'll be needing DSCR loans for the purchase of the rental homes as LLC's will need to own the homes so that the Trust can be the beneficiary.

Any expert advice? Idea, is to build some equity over the next 10-15 years that will survive my father. The trust has approx $1.3million in equity and if my dad lives another 10-15 years I'd like for there to be something left over. Idea being some income/equity from rental property portfolio