So ultimately you need to focus on your goal. 

I'd suggest reading: "The Ultimate Beginner’s Guide to Real Estate Investing" from BiggerPockets. 

You can buy the rate down a lot more with that option, than you could with a permanent rate buy down.The ultimate goal would be do reduce your interest rate enough for the first 18-24 months and then refinance once rates come down (because they will).  

The ultimate in house hacking!! 

@Dario Martinez, ultimately sellers are looking at their net at the end of the day, so if you are willing to offer $7k more and ask for a $7k credit toward closing costs, as long as it appraises, you can essentially finance the closing costs into the loan.

How to Invest in Real Estate: The Ultimate Beginner's Guide to Getting Started by Brandon Turner! 

So allow me to ask the question this way because this is more-so what the ultimate goal is.Let's say that I'm doing a rental arbitrage strategy. 

You may want to ultimately expand your search a bit outside of Tampa to other desirable areas of Florida that are more up and coming.

So in theory I should be able to borrow do from my insurance policy and since it’s using the cash value as collateral and has no terms (if I understand it right, if you never pay back the loan it comes from the death benefit ultimately) then a mortgage lender shouldn’t count it as debt. 

Ultimately, do what you can to help them in their situation.