I have like $130k in equity on one of my duplexes and I would love to tap in the equity as a down payment along with DSCR loan.

I mean say if I include in the lease contract something that says "any rent later then the 1st of month shall be considered violation of this lease and this yearly lease shall simply become a weekly lease (as weekly leases I read only need 3 days notice to evict) from when a 3 days notice is automatically needed to be considered with per day penalty being $100 if not moved within 3 days of non repayment of rent from the date of not paying (due date) the person's presence on the property shall be considered illegal and will be treated no less then a violent intruder".

(My plan is to consolidate that debt and pay off loc within 18 months, then potentially use it as down payment on another building)I’m feeling a little stuck and looking for some advice.

Would AirBNB still recognize me as the property owner and the one collecting the payments once they generate tax documents? 

That's the correct answer, commercial mortgages are a lot more flexible about down payment sources, etc, than home loans, but pragmatically (loan requirements aside) you need to bring SOMETHING to the table for anyone to want to bring what THEY have (down payment etc) to the table.

I was told an initial one time payment plus $500/month.

Investment/conventional Mortgage with a cash down payment How did you add value to the deal?

Think of it as making new friends with benefits – of the real estate variety.Leverage Your Cash: Use your cash for down payments and renovation costs.

If a foreclosed due to no payment of mortgage then auction will start at 2/3 of appraisal. 

(Max vacated rents - your monthly mortgage payment) = +/- net cashflow.