How do I access a portion of that equity to fund the purchase of 1-2 more MFR properties in more affordable markets like OH, IN, MI, PA, TN, or AL?

Renting to a friend can complicate things, especially if you're starting below market rent.

STRs also avoid automatic classification as passive if rented for seven days or fewer per tenant.To maximize tax benefits, maintain detailed logs of all hours worked on activities like tenant communication, cleaning, maintenance, and marketing.

They are either dealing  with a property they are having problems with or they want more than market vale. 

We are always priced under the market average for properties, as we prefer a slightly higher occupancy rate over a higher nightly price.  

What markets are you looking into? 

You are (older/retired) and could benefit from house hacking and buying a duplex, or renting a room.

One I know is based in LA as that's a huge market of course..

The Japanese market is different in that it is a high yield cash flow market, non speculative investing.

Or do I look into a market like Las Cruces, NM, or Lubbock, TX, as an example of bigger markets I have looked at and am somewhat familiar with?