Insurance companies who assess risk don't care about who is the bad apple, the owner or the pit bull, only what are the odds of a dog bite doing serious damage leading to a large claim? 

Just like Apple takes your money when you buy shares of stock and creates iPhones - you are not buying iPhones you are buying shares of a company.

For example, with stocks, a high net worth individual (a celebrity) can tweet, ''I hate apple products" and you could see their stocks decline in value.

However, those 5 things you listed are apples and oranges to IBanking, especially #5. 

So far, I only have one non-payer, which is actually not even a Covid issue, just a bad apple.

Rental money vs. mutual fund returns is not an apple-to-apple comparison.

As people have mentioned, need to keep it apples to apples. 

I think the only way to compare those scenarios apple-to-apples would be Option A and Option 2B, as it's taking into account the same amount of cash being invested, and one can look at the opportunity cost of one vs the other.

But also a lot of people, meaning the dollars per person are quite low, and there are few to no major employers in the area (I believe apple has a data center...

If you're trying to utilize the extra equity, I'd recommend shopping some more to see what other brokers/lenders can offer you; both at 70% LTV (to compare apples to apples) and 75% LTV.