If not - and you are more interested in moving into buy-and-hold real estate - then you should sell it and reinvest the proceeds into properties that will give you a higher rate of return.

(c) This chapter applies to property held by life insurance companies with the exception of unclaimed proceeds to which Chapter 1109, Insurance Code, applies and that are held by those companies that are subject to Chapter 1109, Insurance Code.

Anyway, now I could use advice about how to proceed.  

If the income cannot be verified then how can you proceed?

How do others proceed in this situation?

basically two ways to proceed. first is ignore the rental situation. throw his stuff on the curb, and hope he goes away. hopefully she does not get sued for self help eviction. second is to deliver 3 day pay or quit alongside 30 day notice to vacate and follow formal eviction procedures. benefit to this is its the legal way to go, but it takes longer and can be uncomfortable.she should consult her local landlord tenant laws to understand her decisions though

The four points, $8400, comes off the top, leaving you loan proceeds of $201,600.  

Interested or advise on how to proceed please respond.Thank you

Amount of reinvestment does.You have 45 days after closing your sale to identify your potential replacements and a total of 180 days to close.You have to use a qualified intermediary and they must be in place prior to your sale closing - think $750 to save $30KThe entity or individual who sells must be the same entity or individual who purchases.If you want to defer all tax you must purchase at least as much as you sell and use all of the proceeds or you pay tax only on the difference. 

I'm looking to sale and use the proceeds toward the purchase a MFP investment.