Current goal is focused on growing a portfolio and reinvesting cash flows.

Super cool idea I think - win-win for everyone, you make extra $, cleaner makes extra $, guest gets what they want and can have a unique memorable experience.Opens the door for lots of different "package" types What's the downside?

You've done well with your Class A rental, generating $500/mo in cash flow, this adds up over time.

Quote from @Dylan Webb: Hello, here's my situation:My wife and I own several properties separately.2 of the single family homes combined we have conservatively $150,000 in equity ($90,000, $60,000) I want to use one of these as collateral for a small loan of $30,000 to put down on a high cash flowing property OR have a lender finance the whole venture at a purchase price of $160,000.

They are for holding that property only - that money IS your cash flow. 

Yes, you can do a cash out refinance on the property to pull out some of your equity.

If you don’t have a clear understanding of your cash flow, operating costs, and future expenses, you could be setting yourself up for financial stress down the road.The Power of Financial ClarityYou can’t make smart decisions without knowing the full picture of your finances.

Assuming when you say "$3900/mo in rental income" you mean cash flow.That means it will take you about 13 years of rental income to equal the $500k in equity you have now. 

One thing to be mindful of is the cash flow of the property as you get into higher LTVs.

I asked if he was willing to sell the house cash?