I guess I was thinking that based on present credit rating, We wouldn't be able to qualify.

You'll still be paying rent to someone else, but you can negotiate rent credits, and it's essentially your own home.

Before tax reform, you could deduct interest on HELCO loan no matter how you used the fund. ( for eg you could use that money for rental or personal expenses )For example, interest on a home equity loan used to build an addition to an existing home is typically deductible, while interest on the same loan used to pay personal living expenses—such as credit card debts—is not.Using the loan for a Rental activity does not qualify for interest deduction in your Schedule A as an itemized deduction.  

The rates and terms will be more favorable with Fannie/Freddie if you're bankable.If you qualify for conventional you can transfer the properties from the LLC to your name and refinance.If you need a commercial loan then you should start calling local banks and credit unions.

I have good credit and was looking to put about 25% down on the property but any financing I tried to obtain they measured it as a risky investment for this reason (which ended up making sense once explained).

I can pull all of my equity out of this car and get a 1.6% interest rate on a used car loan from a local credit union.

Assuming everything checks out with the sister (references/income/credit check) I had planned to get another new deposit from her, return his deposit (less any damages due to him), and create a new lease with my original tenant and her sister.

My goal is to remove the existing mortgages from my personal credit into the LLC where we have landlord ins and an umbrella policy.

I have a rental property in Indianapolis and I’m looking for a bank in Indiana (or in another state If allowable) that offers a line of credit under an LLC?

Local banks and credit unions would be the way to go.