All our cash would be locked up in equity and I was looking for advice on if that was smart when starting out.

I would attempt to save the existing drain field, perhaps it may only need to be flushed; have your septic guy give you some alternative suggestions and make the replacement the last choice as it is the most expensive.  

That was my choice as well (to simply address the letter to the owner and not mention anything about the passing).  

I have a 4 unit, that I want to make a "smart home" as far as utilities go.  

Use your smarts and see how they are using numbers to try to fool you.What is the question?

If the latter is the best choice should I cash-out refi or sell to recover my money for the next flip?

I'm still confused, @Brian Eastman and @Dmitriy Fomichenko both seem like smart people, but aren't your opinions opposing??

@Lisa GarrettYes, a self directed IRA is just like the IRA you have, but with different investment choices.  

If the seller spent $50k on a house on 30th and Hampton he or she is not very smart.

My wife and I are making the conscious choice to delay purchasing the home we want until our real estate has grown enough to support it.