When she passes the asset that was purchased as part of the 1031 would then be liquidated and distributed to heirs with no taxes The goal is to get her the cash she needs from her asset without paying any/minimal capital gains.  

@Karalyn DuncanEntering the real estate investing game with limited capital is a common challenge, but there are several strategies you can explore to overcome this hurdle.

If you take away the "right and wrong" and simply think about what you want long term...it makes it easy to align your current decision with that long term goal. 

The most common strategy is to use the existing equity to put into another downpayment and buy another property - this provides an effective use of leverage as you are expanding your portfolio.

The most common option is a DSCR mortgage.

For as long as I could remember I never wanted to have a regular 9-5 and always had a goal of being wealthy.

It is very common for rents to be under market on multi.

I’d love to hear a bit more about you and your investment goals, and chat about how we might be able to help.  

Depending on your budget, and what your goals are.

The goal here would be to remove the PMI as soon as practical using the least amount of money.