You've got to protect your interests because no one else will; at least you now realize that you made mistakes....you can learn and fix them so it won't happen repeatedly.Maybe the friend/family member will be inspired by your actions to buy their own house/rental unit. 

So far, the FOA is covered by the fruit production. 

You are young and presumably single, so living in a master suite while renting out some other rooms is easy.

I run a full-time planning practice focused on real estate investors, so I wanted to add a few thoughts for context:1.Cash Value Takes TimeMany IULs (Index Universal Life policies) may take 7–10 years before you can borrow a meaningful amount of cash value.

Yea, I'd love to call and maybe change your mind with our processes 

Personally, I invest in properties in C-Class neighborhoods in my market (East Linden and Southern Hilltop), and they’ve been cash-flowing well so far.

Savings: Hold the deposit here so it's separate from operating funds.

Quote from @Joel Bechtel: The agent I spoke with has about 30 years of insurance experience, so I’d hope she knows what she’s talking about and what she’s offering.I have another policy with Allstate for my 6-unit property, which they were able to insure for approximately $890K because the replacement cost came in under $1M.

You can't use the losses against your W2 income-so generally a cost segregation study won't help you. 

I am looking to refinance in the near term either when rates drop to the 6.5% range into a conventional 30 year mortgage or as quickly as I am able into a first lien HELOC to be able to park paychecks into the mortgage and save a significant amount on interest or so it seems.