Comparing Bank Recourse debt to Agency Non-Recourse debt, the most significant difference might be Replacement Reserves.  

Individual #1: Taking out traditional mortgage with 10% down to purchase propertyIndividual #2: Managing restoration and sale, taking share of profitsThey need money for the restoration budget, estimated at $40K.

Any loan you want to take against the whole life policy is secured with the policy values, which are restored when the loan is paid off.

I was just told that my mom's debt to ratio was too high, meaning that the current mortgage of her home plus the mortgage of this home in comparison to her income is too high.

I have the 30+% down and a credit score of 760+ with minimal debt (few hundred dollars).    

I've seen a video on youtube froom "Commercial Property Advisors" saying that it is actually better to buy a 5+ until as opposed to a 4 unit building because then the loan is commercial and the property cash flows factor into the evaluation of the property in underwriting (in addition to you still being checked out for income, assets, debt, etc.), whereas with residential, you can qualify for residential on just your income and assets alone, no evaluation of the property.  

I want to leave the corporate grind and do something I can enjoy, restore the community and help someone become a homeowner.I am looking to network with local people who can guide me through the real estate world.

Also, we don't know what your gross monthly expenses (including debt service, OpEx, CapEx, insurance & property management fees) would be on those properties, after pulling the equity out and/or after the refi.  

If you are going to do that just get  a 4 plex with long term low-fixed debt for 30 years with 20% down.A 5 is above getting a good loan on and too small for the better commercial loans. 

I don't like my clients to be mortgaged to the hilt and in debt up to their ears (ironic considering what I do, I know), so I always give a little talk about how *guaranteed* ROI on paying debt down early is exactly equal to the interest rate on said debt.