My question is I have about $30,000 in cash that I am comfortable using, but would like to keep that and see if I can get a home equity loan (since it is paid off and I could get at least $200,000) and use that to purchase my first rental property.

I'm not a Judge, nor a DA, nor a criminal attorney or any such attorney but I AM a Real Estate Broker, and what I understand of the law in the capacity as is required of my licensure, have experienced of it, and seen of it all, as well as read of it, the exact actions in discussion are way too close for my comfort in fitting the definitive. 

When we had more properties we would increase it, but it was not linear, but for me comfortable would be $20k for the first property and $5k increase for each additional door on top of that. 

.- Current Rent is 150$- $200 behind market avg.I am very comfortable in single family homes in this town (own 18 SFH rented and performing well).

Give up some of your personal comfort to increase earnings so you can pay to maintain the gift your mother gave you.6.

look at 50 properties over the next 6 months and make reasonable offers that you're comfortable with. 

You've got the experience, and your friends want to relax while their money grows.

@Kyle SimmonsYeah, 1-2% is fair, but as mentioned previously, as the seller you can ask for whatever amount that you feel comfortable with so the buyer doesn't have the urge to just walk away from the deal without having anything to lose.

Naybe search for lenders who are more relaxed  about it?

But have recently thought about the longer term picture and my passions don’t align with my career even though the job is comfortable and technically what many would call a great spot to be as a Physical Therapist.