It's debt you'd still have to pay back, but at least you will not touch one of those two amazing interest rates. 

But somebody could use a credit card fund the immediate need and then pay it back with the policy loan fairly quickly.

That is online with what we’ve been paying when we were able to find help.

North side Chicago I have never even had to give a tenant a late fee and none of the tenants I have placed for clients have ever given them issues either, properly picked people pay like clockwork on autopay.

Based on your current assumptions, you would be paying $1,229 per month out of pocket, leading to negative cash flow.If you’re house hacking and living in the property, it might still make sense because you're paying for housing anyway.

If they don't pay rent in full, evict them.

If the new owner pays on the loan its not "equity skimming" from what I understand of it.

Some appliances just pays to get new.

I would apply the cash flow to pay down the debt and hope to have significant passive income (or equity to put into something else) in 10 years.

I would, If in this position, take the equity in the form of a HELOC and purchase a cash flowing asset that would not only pay for itself but pay for the cost of the money while putting cash into my bank account each month.