Most of the people I’ve worked with find some middle ground, keep some cash for safety, reduce non-income debt and allocate some to investing.  

But what long term effect does this have for banks and then those that have to report earnings with more and more dead beat properties on their books?

The buyer is somewhat handy and may be making improvements to the  home over the three years possibly reducing the 203k loan amount.From what i've read it takes at least 3 years to qualify for a FHA. 

There are exceptions when the IRA uses mortgage financing or for certain types of real estate transactions that are businesses as opposed to passive earnings (i.e. flipping houses).IRS rules that accompany the tax-sheltered status of the IRA prohibit you and close family from personally benefiting from the IRA - other than by growing your retirement savings. 

Hustler money blog or bankrate.com or doctor of credit site for bank opening bonus + finding the highest yielding accounts. https://www.doctorofcredit.com/high-interest-savin...https://www.magnifymoney.com/blog/earning-interest/best-high-yield-checking-accounts376922578/

The extremely damp conditions will infiltrate to the unit/s above and will drastically reduce the useful life of everything in the bsmnt. incl. the water heater, furnace, electrical panel, etc.

(I don't blame him) But I did all the work and I want to have my license, I worked hard and earned it! 

A typically rental may show a small loss (depends upon scale).Look at using an IRA for her as well based upon your earnings; however, there are not too many options if she does not have any active earned income.

I'm sitting here trying to figure out how I can earn $5k a month on cashflow since it will take forever to pay down these properties and I won't be able to snowball very well with rent. 

How do you recommend a new investor reduce their leverage in a potential recession?