If she’s owned these for years she will owe a boat load of taxes and depreciation recapture that she wouldn’t owe if she just left them to you when she passed.

Isn't the Rogue River around there somewhere with rafting, fishing & boating?

"Waterproofing" a basement is a myth, it's not a boat and will always take on water if it is present on the outside, thats why it is so important to maintain pitch around the outside and manage your surface and rainwater.

My last closing I had my commercial banker wire it directly from HELOC with a response, "I wish more people actually used HELOC's in this way instead of buying a bigger boat." 

I'm sort of in the same boat as Fern but I will need to set up an LLC and taxed as an S-Corp for 2017 tax return.

Expenses for the purchase of a boat or television would generally not qualify for a hardship distribution.

90k purchase  40k  rehab  130k all in   lender will want you to have probably 20k of your own money in the deal.so lets say for fun 110k  at  3 and 10 for 6 month flip ..   3300   points   5500 in interest  5k in junk fees and miscsell for 200k  commish and closing cost 7%  = 14k   so lets see where that all adds up to.130k + 14K + 8800 + 5k misc + another 5k for ut oh  =  162,800  minus 200k = 37,200 net... not many flippers I know that would not do that deal...lets say your not that great at it and its another 5500 in interest and 2k in hold now your at about 30k.. where most flippers really miss the boat is they should have a real estate license and save half the commission they should all list their own stuff.. that's just giving money away .. at least once you get to scale.. plus you need advantage of real time MLS and keys to get in with out having to bother a realtor.this as you laid it out is a home run.. and HML is a small part of it.. 

There are different issues with boats then house ownership.

I'm in the same boat as you but still researching which TK to go with in memphis.  

I am sure there are others who are in the same boat who are looking to get tax advantages but not able to.