I insure for Actual Cash Value where I set the coverage amount. 

I recommend you have some amount of coverage for catastrophic events and injuries.

Minimum loan amount is $25,000.

The equity is the appraised value of your home minus your mortgage amount.  

That's a pretty intense amount of debt, however.

If one month in you use the entire amount to fund a down payment for a new property you wanted, your bank will likely ask you to term the loan at, aka have fixed monthly payments or pay it back.

If the property is in good shape, check with a local REALTOR to see what it's market value may be if listed and base your financial decision to sell or hold on the amount you could actually sell for, not what the letter in the mail offered.

If you use a payroll company they would draw the corporate account for the entire amount and then distribute funds accordingly.

When the appraisal is done, it will also show fair market rents for the units, the lender will compare these to your lease amounts, but wont really do anything other than compare?

I will tell you.That magic number X is... how EVER much  the numbers (this includes ARV, market value, and the amount of risk you want to take) allows.