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.

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, 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. 

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.

For example, they have not sent us the rent they owned us for the last three months, and here is paperwork to show it is not in our account, here is the contract with them stating they would pay on this day each month, and here is the title of the house in my LLC/name to show you we own the property too.

But now 50% are not paying.