While I'm just starting out myself, I have a number of friends and family that have done this full time to talk with and extract insights and information.

I also have a lot of skin in the game (and other collateral) and would make sure the capital extracted out during the cash-out refi would pay back the principal balance or her HELOC first and foremost… and of course, compensating her with a big hug and a thousand dollar bill.Just trying to think outside the box.Thanks,Andrew

This will make it very difficult to extract all of your initial investment (purchase plus rehab costs). 

I guess there are trade offs though because naturally banks would be a bit more resistant to lend to a LLC unless it had a whole lot of money in the bank.

But see, that is my point, these are just details, yes there bewildering nature may look a lot like concern but there is no concern, query yes, uncertainty a plenty for sure, but concern not so much. 

I should say that we were well aware that the nature of this project was going to result in change orders. 

Would the natural progression still be a mailers and skip trace route?

Be sure to have a solid tax advisor and understand the calculations and systems in each region you’re interested in.Also, the natural disaster risk you mentioned is very real.

Most self-directed IRA firms are administrative in nature and hold required licensing that is more banking related in nature. 

@Michael PempinI don't know even the general nature of your transaction so I can't comment anymore on your estimates.As for your question about why leverage on when your property may go down and why buy more now...