@Shawn Munoz right now my cashflow, combined with refinancing is to acquire more properties.

The accessory dwelling unit may be combined with a junior accessory dwelling unit described in subparagraph (A)."

In order to be classified as a real estate professional a few things are needed, 1) You spend more than 750 hours per year as a "material" participant in a real estate business, which could include management, brokerage, construction, leasing, rental and operation2) You spend more time in real estate businesses than all other businesses(including employment), that you're involved in, combined.

If that combined lump sum is enough to have a major negative impact on your parents lives if it were to be lost/diminished significantly then you might want to reconsider taking this idea any further.

I have about $6K in liquid cash available to me and I am planning on liquidating a combination of retirement accounts from my previous employers.

I'd move on instead of trying to find the secret combination of factors, which probably doesn't exist.

It's a combination of cash flow and personal preference.

There are three types of funding, all 3 defined on how you pay for them, and how you use/spend them...thus what the cost of each are.1 - Cash:  No cost, one use...but if your plan is correctly laid out, you should have an infinite number of uses of your cash.2 - Leverage/Debt:  Cost to you, but you get only one use per cost.3 - Cash-like substance:  This combines #1 and #2. 

Power washed and painted exterior, removed trees, new windows, painted front door, updated garage door and back door, added door entry from garage into house, new paint throughout the house, renovated 2 bathrooms (one of these bathrooms was a 1/2 bath that we converted into a full bath by combining the adjoining closet and rerouting the plumbing), added a kitchenette/kitchen in the basement.

Peak in KC has a 30 year non recourse product with 40 to 50% down.. primarily aimed at foreign investors rates 8 to 10% with usually about 10 points.. or 4 to 5k and no junk fees as we know every lender needs to make 4 to 5k a file in either origination fee's or junk fees and a combination of all of those .. borrowers many times get focused on points then end up with 3k of junk fee's on the HUD and then like to say hey I got 1 point  LOL  you simply cant stay in business as a lender if your not making at least 4 to 5k a file.. you will go broke.