Many times if an investor wants to purchase a short-term rental property in a vacation market, their goal is to earn income, but also have a property for their own use in a place they would like to visit and/or build equity on a property they would like to retire in someday.  

You may avoid the taxes if you deposit the funds in an eligible retirement plan (which includes anIRA) within "3 years and a day" of the date of the COVID-19 distribution (note: compare to a 60-day rollover).

Plan is to use the property as a STVR but don’t wanna be stuck with a smelly house that we can’t rent or unload down the road.As part of retirement, we have been selling all of our properties.

I would be hesitant about putting your hard-earned retirement funds on the line until you have a solid understanding of the process and are confident in your abilities as an investor.

Her parents live next door and all the other tenants (except one) are older and retired, so they stay indoors and don't interact much.

26 units would be the perfect size for you to find a retired couple to help you manage.

My mom has been working for 36 years and she is ready to retire.........but shes doesnt qualify for the full retirement because she isnt old enough (she has the years of service but not age for the combo to retire with full retirement benefits).......i want to retire her!

Are you looking for REI to reach financial freedom then "retire" or will you continue to work in the corporate world?

For those who do qualify, the Solo 401(k) is in many cases the nicer self-directed retirement plan option. 

There is not much you can do now to save on taxes except might establish some tax deferred retirement account ,if possible/applicable.