I’m considering tapping into this equity to fund future fix-and-flip projects or even purchase another rental property.My questions are:Do you think leveraging the equity in my properties is a smart move for real estate investments?

At a minimum look for a deal that breaks even - although it's always better to cash flow and still have the shot at future appreciation.

This might be a question for our insurance broker/future attorney, but wouldn't the LLC be formed in Indiana since the rental property is located there (versus Illinois where we will be living)?

My hope is I can gain their trust as a property manager and eventually be the one they turn to to sell later on or refer for business in the future.

. - The home is 2 payments behind and already got a letter from the lender about future foreclose.

Really your advantage is using your legal prowess to better appraise future deals. 

Thats your bonafides to being able to do future deals.As mentioned above, keep your credit perfect.

Speaking with a lender is a good plan, they can help you plan for the future.  

Quote from @Spencer Elliott: Long story short, land is on loan and I’m purchasing a manufactured lot as a temporary home/future ADU to my final build.

Plus it drives down wages so existing population can’t move up in housing.Add in Airbnb and you drive up housing.Add in tariffs for Canadian lumber 3 years ago and potential future China and Mexico tariffs.