It's 3 bed 3 bath and has the perfect square footage to add a 4th bedroom down stairs and egress window.

When I bought this property , I knew this will go up and I would be able to get rid of my PMI.If I get rid of PMI, I can still get a Home Line of equity on my house right?

Ask for Allison while dialing their main line (their general number is on their website).

Meaning they will not allow me to use my equity to obtain a line of credit.   

We will definitely check further into the laws but just want to make sure we are not out of line with our requests!

If you did decide you still wanted more protection you could place the lease under an LLC, in that the property is under your name but the Tenant is dealing with and interacting with the LLC which is on the Lease, in essence if they sue due to any management mishaps they would be suing the managing LLC and it would give you some protection of which if they got through that then you would fall back on your second line of protection, your insurance - this would also let your LLC season and position it to buy property in the future.

Meaning they will not allow me to use my equity to obtain a line of credit.I would rather not do a HELOC on each property due to the associated closing costs with each loan.What can I do in order to tap into this equity and put it to work for me?

@Sean Doherty, As @Anthony Thompson stated, a generic septic is generally speaking in the $10,000 to $12,000 range for a 3 bed.  

I believe these tubs are designed to not require a mud bed under them these days; they primarily displace their load around the edges instead.

the rest of the yea what teenager wouldn't want their own home (but still close enough to check bed times and homework).