Proformas are just estimates, if it's the brokers proforma or the sellers, I'd cut that down quite a bit

My LTR income has provided the cashflow to quit my job as an electrical engineer.  

It is true that certain policies will accumulate significant cash value, but you either have to put in several thousands for a certain amount of years and let it season for a bit (Life Insurance Retirement Plan) or you pay your monthly/annual premium for quite a while and wait until you're in your 60's or 70's+ to have access to a good amount of cash value (Variable Universal Life).

I’m a bit confused and quite frankly frustrated, as to what policy will best fit this situation.

My first impression was that we can wholesale it to a land lord since it is turnkey, pristine however looks quit outdated.

You can also own a handful do quite well.

It's quite possible that they can find enough additional deductions to pay for the additional cost of their service and sometimes a lot more.

The property is close to a university, so the rent is quite high: $8300 between both rentals.  

FHA is a good option if you have had some credit hiccups in the past or can't quite get there on income to qualify for conventional.

I was also in IT field and working as a QA Tester for 17 years and quit the job for good 2 years ago, As my real estate investments are giving passive income..