Most investors make the same rookie mistake: They focus on problems instead of people.
Telling sellers everything wrong with their house and justifying your offer with repair costs doesn’t build trust—it kills it.
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You would only pay taxes on all passive investments in a traditional SDIRA at distribution, unless you have a mortgage, then the portion of the income derived because of the mortgage will be subject to UDFI (unrelated debt finance income) which will trigger UBIT (unrelated business income tax). 

Cash out should be used as a 12-24 month loan so that you can buy another property and pull cash out at the next 12th or 24th month mark.At that point you take a portion to pay off or down the first loan and use the rest as a down payment on the next REI.

You must report rental income on Schedule E and can deduct rental expenses like repairs, maintenance, property taxes, mortgage interest (allocated between personal and rental use), and depreciation for the rented portion.

Getting the rate back down to remove the incresed portion from the cash out refiance. 

We plan to stay in this house for more than 5 years unless another great opportunity arises, but maybe it is best to allocate a bigger portion of savings to our real estate investment savings account than our home improvement savings account for the first few years.

Let's clarify this real quick,I understand this model wouldn’t work for every property owner, especially those who are looking to sell outright and walk away from the property entirely, and the approach isn’t designed to replace a traditional property sale. 

People care more about the appearance of kitchen appliances because they are in a public portion of the house as opposed to washer/dryers which visitors rarely see. 4.

Yes, the government pays the Section 8 rent timely, but more and more tenants are having to pay a portion of their rent.

Not much to add to the good advice already written, exceptYour mom could easily get a reverse mortgage to pay for her care, then you and your brothers could split the equity left upon sale.