Won't this force the most appreciationor do investors prefer residential tenants?

It's not about your experience and you shouldn't let this crazy market impact your self-worth.

If he leverages cash value and deal completely fails, he has zero surrender value, but the cash value is still there and the policy can remain in force with the loan forever collateralized by the cash value. 

@Paul Deliso Finding a multi-fam or any property for that matter that is value-add and needs some TLC would be your "easiest" way of adding equity and forced appreciation upfront which would then allow you to pull more cash back out to pay back your lender, assuming the comps and market support the ARV. 

Property has been remodeled.Seller is interested in how carrying the note may impact depreciation recapture and potential capital gains.

Demonstrating to vendors/contractors and others the economic impact landlords have in the community.   

You should however have your taxes reviewed by an LO in the market you plan to purchase in so that LO can give you direction as to how your tax filing impacts your purchasing power.  

Does anyone know if I have any grounds to force a refund from the platform or chase the original inspector to fix these items on their insurance or something?

"Off market" deals are not subject to the same market forces, as a listed property on the open market.

COVID was a tough one, because of legalities around forcing yourself into a property.