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

I definitely would pay attention to key macroeconomic stats such as population growth, job growth, and where companies are moving/developing.

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.

Pay attention to 99% of the posts on Bigger Pockets, most folks here have very little money.

@Bob Dole please tell me you have a CPA and you're simply educating yourself so that you can verify what he is saying is correct? 

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. 

To answer your question @John Thedford, PPR's current fund pays 12%.   

The only extra pay for guests is the surf-rider.

This is obviously much better than $1,400 per month.On top of that, you will now get 2x the depreciation write-off so your taxes should go down.On top of that, you will now get 2x the appreciation when real estate price go up.On top of that, your tenants are helping you pay down the loan, initially at about $100/mo for both properties, which gradually gets better and better.On top of that, you now have more units so if one or two goes vacant, you have more renters covering the losses of the vacant units.If you want to keep these properties, I would do a cash-out refi and go buy more rental real estate.

Some appliances just pays to get new.