That’s exactly how I started and now I’m considering holding it as a retirement supplement. 10 more years it we’ll be paid off and cash for 1400+ month

The reason why they're not considering this is bc her expense and meal per diems are not 'compensation pay' but rather benefits, same reason why they don't monetize your health insurance coverage as part of the income of anyone else.

Forced Placed policies normally refer to a policy, purchased by a lender and charged back to the Mortgage Holder when that holder lapsed coverage.  

If so the private money industry has come out with DSCR loans - debt service coverage ratio - they’re basically 30 year term loans based off the properties income/expenses.

Search out DSCR (Debt-Service-Coverage Ratio lenders, that basically use how the property cash flows to lend.

It's a great supplement to retirement, or it could just be your retirement plan.

Require tenant to pay for an entire year of coverage up front.

However, they found only one insurance company (B++ rated) willing to insure the property and noted that would require a detailed inspection (leaving me anxious that they may drop coverage post close if for any reason my property does not pass inspection).

There are Specialty policies (often referred to as Excess or Surplus Lines) that should be able to write coverage.  

Doing this:   a) Keeps them from blowing their money on a house they can't really afford in the long-run   b) Gives them hands-on landlord experience which will supplement their offseason PMC job4) From day one they should be reading everything they can about RE investing - maybe here on BP.If they do all this, they have the highest probabilty of sustained success in real estate investing.