Short answer: not legally, but they can get away with it.Long answer starts with a fundamental concept of our tax laws.

Often times you will pay much more in taxes than if you pulled the money out, paid the taxes and penalty and then started investing in real estate.For example, with the financing you mentioned, the IRA must pay taxes on the portion of the profit earned by financing. 

My thoughts were that this would be a short-term solution.However, the more I think about it, I’m starting to lean toward a cash-out refinance over 25 years, with a minimum payment structure.

Sounds like you've got a good start with one STR.

I didn’t just wake up and start bagging deals and becoming an all-around cheerleader for success.

For first flips better to start with a  small cosmetic rehab  until you get to know the process and the team well.

I'm just starting out with a STR and I'm in the process of vetting companies for tax strategy and asset protection. 

Start by reading Rich Dad Poor Dad and Set for Life to shift your mindset, and remember that your first deal or breakthrough networking moment will boost your confidence.

My 5 year old started Elementary in our neighborhood.

Renting to a friend can complicate things, especially if you're starting below market rent.