Would a home equity loan be a viable option in this situation, especially in regards to eliminating some of the red tape I'm running into with a refinancing an scorp-owned property?

Tons of equity.

Obviously rates may differ than the rate sheet being advertised but just looking it appears the home equity and home equity loans are going to be more than a second mortgage or even a cash out refinance.

You might find the answers to your questions there but I know that the search function is less then optimal so feel free to send me a DM if you don't easily find what you're looking for.I've never bothered commenting much about Canada because, until recently, it made no sense for US investors to invest in Canada: much less favorable mortgage conditions if they could even get one, much more expensive prices on average and much less profitable on average.

Consider offering equity partnerships, debt financing with profit sharing, or preferred equity, where investors get a fixed return before you share profits.

And we discontinued the full service breakfast in favor of a grab-and-go breakfast bar in the foyer. 

My mother originally agreed for me to refi some money out of the equity of a house we co own but then she changed my mind after I signed the contract on the guesthouse.  

Stats are not in your favor but forget the stats as it all depends on the individual's drive, effort and processes. 

If loan balance is $300k and it's worth $400k and an equity partner puts $40k to bring it current then they have about 40% of equity in the property - now they would not take straight $40k as probably more costs involved.

There is around 500k equity in the property. 150k-200k would get the property fully rented at top dollar with desirable tenants. 100k would get it to where I can rent all the units back out at fair reasonable market rents.