Nothing you indicated is incorrect, but 1) If the F/F rule is enforced it will affect his ability to extract equity via a refinance. 

We long ago extracted all of our purchase costs.If I limited myself to 1% properties then I would not have purchased the property. 

With tools like Podio, data extraction is a nightmare. 

--Are there other ways to extract value (e.g. adding sqft or charging fees for pets/laundry/parking)?

Anthony,Retirement accounts are designed to provide you with the future benefits (at retirement), what you are trying to do is extract benefits from your IRA now, which is against the rules.

Another way is to write a HTML parsing script to extract the data from Realtor.com which has the comprehensive listings. 

I would also not advise making your mother the manager and extracting a management fee.Another consideration is whether your grandmother has capacity to agree to all of this, or if a POA needs to be put in place.Best of luck.

Shaun, Zillow offers data you can extract.

So I extracted the things I liked and was about to log off but I wanted to see what the price was this time. 6 months ago on sale for $997.

Either just keep living where you are living and find a SFR or as suggested find a fixer upper, make it your home, then extract the equity for your first SFR.As pointed out before you do any of this you will have to build up your credit score.Whatever you do make sure after the down payment that you have enough cash to cover any major expenses or vacancies that might arise.So to reiterate.1.