Insurance proceeds are typically provided in a check that must be endorsed by both the policy holder and the mortgage holder. 

Buying at the mortgage balance (~$150K) positions is under the fair market value and can trigger gift tax rules.

By the time I reach 20% equity (likely 3+ years away), my monthly mortgage payment will come down when I refinance, but $600 is a big hit to the numbers. 

Imagine a 4bed/2bath home with a small ADU in back, a converted garage with a private entrance, or a three-level home with a basement that can be converted into a private apartment.You can get privacy and house hack, but it takes a little more effort.

For example, I've used several banks for loans: Flagstar Bank, All Western Mortgage (a broker), PenFed Credit Union (HELOC), NewRez and probably a couple others I'm forgetting.

You have zero control over the stock market, whereas when you do private lending, you have significantly higher control and contractually guaranteed return on your money.

.$130k debt on home including HELOC,  monthly mortgage & HELOC $1,155 month.

I purchased a rental unit and did some private funding in 2016, and I will probably expand this business by doing more deals.

Consult with an expert or feel free to send me a private message to talk details. 

Mortgage is 3400 while rent is 3200.