@Daniel Dawson  The days of reappraising an FHA after 20% equity and doing away with MIP are long gone.

We have about 105k in equity available and about 135k in w2 income.

If they file bankruptcy, depending on the chapter, they could be paid in full. if there is one dime in equity over the balance of the senior, they can't strip the lien and we aren't in the economy to where there wouldn't be equity above senior lien balance in most cases.

@Paras Gupta if you can't use the equity in one of your rentals to finance the new acquisition, or find a partner, another option is an asset based lender like Lending One, Lima One or several others.

I am considering ways to get my equity out of my home, while still keeping.

I think it was only line of credit like a mortgageHELOC = home equity LOC, which means securedby your home as a primary residence.Mortgage or othe type of loans can be done on investments, but I'm not a lender.Ask @Chris Mason 

Specifically ones where you can build equity. 

Hello Sara,My best advice - do not over leverage the asset - meaning only take a loan up to 50 - 60% of current market value, therefore if the market does tank and your loan comes due, your not stuck with an asset that has very little equity and unable to refinance.

And even if that rental isn't cashflowing, you're still building equity (if you're paying down the mortgage) and may be able to benefit from appreciation someday (not that it should be counted on to appreciate). 

. $100k in equity, great mortgage rate at 3.7 and if rented would yield approx. $200 dollars on top of what our mortgage payment is.