These facilities require licensed beds.

The first 699 E Gold Dust, San Tan Valley AZ comps around 375K and I purchased for 393K so I'm lost about 18K equity by purchasing.

The so-called "non-forfeiture" options.The only thing not guaranteed in a whole life policy are the dividends.Also, the "borrowing your own money" idea has been put to bed many times in this forum.

It is a nice home, but you are likely limited with who will rent a 2 bed, 2.5 bath townhome for $4200 a month. 

This is nothing new and has been going on for many, many decades, with vacation rentals, hotels, bed & breakfasts, etc.

The house is a 4 bed/2 bath in a B neighborhood, conveniently located, zoned to decent schools. 

Therefore trying to get a bit creative with the financing.Positive cash flow will almost be impossible (as I'll have to probably take one bed away, and then build a bath and a kitchen) in what I've been finding, so Im trying to offset the mortgage as much as possible.Long term, ideally I get to keep it and the 2nd unit adds to the cash flow if I ever dont need it anymore. 

The stream bed in question is small/ephermeral, and the properties haven't flood in 12 years, even when the local area has seen some massive flooding in the last decade.  

See below for the numbers:Home Market Value: ~525kLoan Balance: ~476kEquity: ~50kMortgage Payment: $2570Rent Price: $2650Property Manager: 10% (potentially 7% w/military discount from a referral I got)Cashflow: $-185/month, $-2,220/yr1st year Equity Payoff from tenant: $11,561It's a 4 bed, 3.5 bath home built in 2011 that only requires some new paint to be rent ready.

And I'd have to spend $10,000 to $20,000 I imagine to buy furniture, kitchenware, beds, dressers, etc.