Specifically, must this be a commercial/business loan type where you have higher rates and shorter loan life or is there an alternative loan type? 

I have read multiple books on the subject but I am lacking someone in my life that has already walked through the process. 

Another idea that we have been exploring is using the cash value of whole life insurance funds for emergencies. 

As you alluded to, sometimes a passive note investment purchased for monthly payments “goes south”, and becomes an active participation investment, with plenty of additional capital required for legal fees, forced place insurance, and property taxes.  

I know it defies logic, but many things in life defy logic and the evidence I've experienced follows suit. 

Mortgage PITI would be around 5300/m total w insurance, seller financing is around 3600/m w principal, 3100/m with just interest.

Multifamily mindset has recruited students from all walks of life such as teachers, medical doctors, veterans, real estate agents, business men, and I was included into a group (multifamily mindset encourages students to form groups) and one of them is a veteran who is divorced, has kids to support, not employed during that time, got a loan of $40,000 for the tuition.

The agent has insurance, but clearly, they should not be an agent if they don't disclose this. 

Mechanicals, roofs etc. can be towards the end of their useful life and pass inspection but then the cap ex can't be absorbed in many of these C/D neighborhoods.

We also recently got notice from our home Insurance that they are cancelling our policy because of exposed wires discovered by their inspector.