However, if the LLC has only one owner, it can elect to be a disregarded entity for tax purposes.

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. 

What’s the purpose here?

Vacant land prices are relatively inexpensive compared to existing building structures including ones that need to be renovated.As for the new rules coming in place, it just makes it that much harder to get financing from say... banks.  

The sole purpose of pulling out the equity was to invest further into real estate; whether it be another purchase for rental purposes, or the more likely, a cheap property to flip. 

I thought leveraging with a mortgage would make the Cash on Cash percentage go up compared to paying full cash?

I like it long term compared to other western cities. 

I really like the arrowhead and running springs areas, but I'm not sure how much of a draw they'll have compared to big bear city, being right by the resorts.

We did not purposefully do this but I am beginning to understand that this is in our favor.

Meanwhile you can use the remainder of your cash to finance multiple other deals.For a Hard Money loan you will only pay about $750 per month for each $100,000, so if you are not n the project for too long and the forced appreciation is decent, the extra carrying costs shouldn't be to bad compared to the overall deal.