He wanted cash so I Zelle'd Katrina $450 + $15 (she wanted gas money).

Just light your money on fire. 

THAT is awesome diversification, and diversification (to me) is more important than the extra money that active MF investors may or may not make.

If you cash out equity in a property, you are "borrowing" that money from the lender.

which creates what I've been thinking : the supply and demand is artificially created by the number of dollar is being circulated, just like a stock market.currently money supply is increasing since the last six months hence triggered buying activity in loops.These days, it seems having good investment is better than having company that may collapse at any time.

Sometimes, charging LESS rent actually earns you MORE money in the end!

Note that you may have more tenant-to-tenant issues to deal with though.As with any real estate investment, you pays your money, you takes your chances :)

So when I go to a credit union local to me, they dont allow me to do a HELOC because located in different states. so may I please ask if there are any suggestions on what is the best way to pull money out in this situation from the rental home?

Like a hard money lender would do.

Looking for insight into borrowing money to cover down payments and floating capital between renovation draws.