And this is the entity that we will apply for lines of credit (after 2 years of seasoning), so it’s good to have our profits here.

@Erika Wilson For cash-out refi the seasoning period if 6 months. 

To most of the seasoned investors, this may sound like a real novice question, but I appreciate your feed back.

B2R seems to be OK with a loan for the 20% down as long as there isn't a second lien holder, but they would have to source the funds and since those would be coming from my relative's IRA, they won't have been in the lender's bank account for the two months' seasoning.

Like any good Accountant, CA, EA they will be busy through tax season but after would be a good time for a strategic planning meeting.

Hi Howard,Welcome and you will have access to quite a bit of seasoned advise.

They don't change the AC filter or mow the lawn or rake the leaves in this season of falling leaves.

From here I don't know what happens, because after 12 months of seasoning when it comes to a refinance, how can I refinance if my DTI cannot afford the new refinance, which would be Refinancing at 75% LTV, so they give me $75k cash (or is it 75% of the 85% equity I have?)

If you could provide a step-by-step (including the time component i.e. 6 months seasoning), that would be amazing.  

You can find a hard money lender for the initial loan to do all of this and once you have it rented and let it season for 6 months you refinance at the new value (100k) take your 70k out and use it to pay back all your lenders and fees and now you have a cash flowing rental property with 30% equity.