Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

The idea of restricting what you do with your own cash, just because it was a refi, is probably unconstitutional.I know a lot of people investing in Texas from both inside and outside Texas. 

I gave them consistent feedback for years and still believe they could have made $10m or more off of my ideas.

On paper the cheap houses look great, but the reality is they are harder to manage, have higher turn over and cost a lot more time and money.Buying before you retire is a good idea because once you retire, your ability to borrow money is going to decrease as you don't have a regular income from a job.As you want to fix houses up, why not buy a house that needs a bit of work, live in it while doing the renos and then move when you sell it. 

For example, if you are in a 24% tax bracket and the house is valued at $200,000, your potential tax savings might be around $48,000 (24% of $200,000), but that's a rough estimate and assumes you're itemizing.It's always a good idea to consult a tax professional to ensure you're maximizing your deduction and following all the necessary procedures for your donation.

However I do have a few other ideas but I would need to know a bit more about your situation, timeframe, overall financial objectives.

I was leveraged to the point of being uncomfortable when I was single and in my 20s so I get the idea but don’t recommend pulling money out of a retirement fund.

Low risk investments sell at a premium, that's the whole idea of cap rates.

Do you have an idea of how much you can afford to put down? 

I believe the idea is that if you transfer a property from your name to a trust you own, the Due On Sale isn't called.