Is it worth pulling out equity to invest?

I've talked to Equity Trust, Quest IRA & Midland IRA and am also looking into TDAmeritrade & Fidelity as options.

Also, have you considered investing as an equity partner in multifamily syndication.

I'm assuming your current SFH has no or little equity.

Afterward (or even before if things line up and depending on how quickly he's paid the loans down) he can pull out equity to buy new properties, use money saved from his regular job to buy more, or use a 1031 to leapfrog into something even better.

Or, you could pull the equity out on the home you own through refinancing and put that equity toward one or more rental properties.The world is your oyster at this stage.

We have an extremely tight budget as we are doing this as a favor to a friend, not as a money maker.

I feel..frozen with fear at my less than perfect credit, even though i know i have a nice advantage with so much equity just sitting there untapped. 

Now, is that equity mine, and would I be able to use it to get an equity line of credit ?

I think you should shift the numbers a little more in your favor.