Is there a alternate way to structure it, please suggest.

Alternatively, happy to be a resource, run analysis on deals etc.

I'll introduce you to the owner of MR Qualified Alternatives.

Alternatively, investing in money markets is another consideration.

I'd look into sound reducing alternatives before you throw the baby out with the bathwater. 

You can have an IRA-owned LLC (aka Checkbook IRA) to buy real estate with it or make any other alternative investments.

Open to hear alternate suggestions. 

I am trying to find an alternative model I might present to folks I know that inherit properties beyond the traditional sell it, or LTR it, without renovation for less money?  

Alternative Tax Benefit – Section 121 ExclusionSince this was your mother's primary residence, she may qualify for the Section 121 exclusion, which allows her to exclude up to $250,000 of capital gains ($500,000 if married and filing jointly).

If meaningful appreciation is on the horizon, its a different story.If you were to go the financing route, blanket loan may be your best bet through small local bank or alternative lender.