Will consider going that option. 

Let me know if you'd like more details on this option. 

Probably about five or more life insurance brokers that specialize in cash value policies are active on BP reach out to them to get some other options and feedback.  

You might get quicker answers for there by reviewing some of the best STR options in your area on Airbnb and then finding the hosts or co-hosts offline to ask questions.

You could ask your accountant about options for bonus depreciation or possibly updating the properties in order to receive depreciation deductions or write-offs for repairs, maintenance, etc. 

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

@Orlando AlbertoAll real estate investment strategies involve risk and require capital.

Also are there any other options I can consider? 

So, generally, I guess I would say that where a lawsuit is brought or what law applies would be entirely dependent on the type of case, facts of the situation, and locations of parties involved. 

Keep in mind there are 8,000 different lenders in the US...so, obviously we cannot speak for all of them...but the absolute best of the best lenders in this space, that have the most aggressive pricing, won't penalize you with 2 points for one option over the other.I would also question that IRS definition - that is not the case.