Taking a large distribution from an IRA - inherited or otherwise - creates a significant tax liability.If the purpose of the property is purely investment, then it will be best to make that investment within the existing IRA umbrella.An inherited IRA can be converted to self-directed format. 

Essentially, that would create a small portfolio of properties that would support itself...then I would look into expanding.

I created my own rental property calculator in a spreadsheet which is roughly based on the calculator on the site. 

Your best bet is to pay down the NC property using the rent and your income to create some cushion of equity.

And of course I would create an LLC so that the business is separated from my personal property.

Account ClosedThat chart in article, by Foldvary, looks very similar to below, which was created by Eric Fernwood in Las Vegas. 

The new rents at 75% would be positive vs the new PITI created by the refi.

The side that is business use you could exchange, the personal use would not be eligible for exchange however if you live their 2 years that side may qualify for the Section 121 gain exclusion.There are costs to completing a 1031 and timing requirements - with just paint and a little sweat equity how much value do you think you created? 

I was advised by an attorney that I should not have my IRA invest in any property anywhere near where I personally own property because of the possible perception that the IRA was creating value to me personally.It is possible to have your IRA invest into a property with other people. 

I have had a landscaper cut all the trees and create a mess in the yard, refused to take them out when we had already agreed on it and demanding more money because he knew I had to leave the country next day.