If so can you provide a referral for this lender?

If the tenant's bank does provide a remedy to refund the money to the tenant, then, I think, you'd have firmer grounds to demand payment of that rent.

In the past I have booked airbnbs for family holidays as more people are able to stay in one space and it provides a more intimate space. 

My wife and I were raising 3 daughters at the time and wanted to provide well for my family’s future.

You can build relationships with wholesalers who know your market and can provide you with leads on "Off-market" deals or you can use an agent to find something on MLS for you.

The Father applicant responded by offering 6 months of rent upfront (even the entire year) and is willing to provide 3 months rent of refundable security deposit for the additional dog risk.

Tenant will pay for installation costs and provide receipts as evidence;2.

That is how the founder envisioned it and puts the lowest amount of risk on you and your capital.If you understand the concept of using CDs and collateralizing them for low risk investments why would you not do the same thing (but far better) by leveraging whole life cash value that locks in a rate and earns dividends (highly likely) for life without all the risk of involving the banks....and getting all the other benefits whole life insurance provides, to boot?

Ive seen conflicting answers online and just want to know if Its legal for me to occupy the home down the life if life circumstances change and I need to while still renting out part of the house?

That could 12 months or whatever you agreed to provided it’s in writing.