If you are risk adverse real estate, (especially out of state) is not for you.

Sometimes you can forge good relationships through adverse conditions.  

  (2) demonstrates a more 'effective' use of liquid assets; you got more bang for  the buck than in (1) AND still have more to work with to boot.Some are debt adverse, but in economics, debt is also a tax advantage while that dead equity in (1) is - - just that - - dead and of no value.

As 90 days doesn't seem long, it is just another adversity to face in case I can sell and flip earlier.

I would like to stay in these areas for now, but I'm not adverse to expanding to other areas, provided it makes sense and I can handle it.

That encroachment is an issue because it can result in an adverse possession claim. 

You could take a large hit withdrawing all of the funds at once; however, your investment inside of the IRA leaves you more cash to invest with no adverse tax ramifications if you purchase free and clear.

If you are risk adverse real estate, (especially out of state) is not for you.

A consumer protection lawyer can probably tell you more accurately than most, exactly how best to shield your wife from an adverse action. 

However, Texas has a long history of homestead protection; lenders are usually risk adverse even when the law seems to be clear.