If we were to refinance the rental to pull out the equity, could we:1. put the equity in a self directed IRA? 

I would make an appointment with the state or county health sanitarian and go over this before I pulled the trigger.. 

So no swinging hammers, pulling permits in your own name, etc. 

As I see it, your two best options are to refinance the property to pull out a significant portion of the equity and invest it elsewhere (but eventually pay capital gains when you sell the property), or to sell the property now and reinvest elsewhere.

Sara,Here's a few answers to your questions.  1.Insurance - Pull up the potential property on Realtor.com. 

For myself in MA I did a cash-out refi with Salem Five bank in 2016 and it was easy and they had very good rates.You'll need to work with the bank to go through the process, it's basically the same as getting a mortgage so you'll need to provide the usual litany of documents like recent pay stub, current mortgage docs, bank accounts, they will pull your credit report, etc. 

. -- I believe I would only be making payments if I had pulled money out from the line (its an LOC, not a loan)  Otherwise it's just considered a big credit card, with no debt on it.

I pulled out the land value if the ARV is 70, then 20k for land is more than enough.Originally posted by @Jay Hinrichs:Originally posted by @Lesley Resnick:The profitability of this property is in the: Depreciation, property tax , mortgage interest & principle pay down.  

Finally, the reason they are getting away with it is because they are pulling from their investors' 401K instead of bank transfers and wire transfers.

By then, you could refinance and pull out some cash, maybe even more than you invested, and move onto the next project.