@Drew GiltnerHey Drew, I saw your post and can definitely relate to the challenge many new investors have with analysis paralysis and getting started. 

I had to borrow the down payment form my parents because I was BROKE. 

There are accountants who say that applies to the opportunity to discount sale and/or basis shift to further lower the tax bill.  

I think you are looking at the wrong places, insulating the floor wouldn't change much. 

If she is always late with the rent she doesn't fit the definition of a good tenant.

I will explore the refi avenue to access the equity.

Points and loan details are TBD still as we're just getting the tentative process down on paper as we wade into the details. 

I opted to go the HELOC route instead.

Your wife as conservator/guardian has an obligation to her mother and selling the property to herself creates a conflict of interest in that she stands to benefit as the buyer and is also making decisions for someone else as the seller.2.

You will receive a report as a result of the cost segregation study that supports the breakout between asset classes and new depreciation schedule in the event that you are audited by the IRS.