It wouldn't generate cash; it'd be a consumable good, effectively.

The effect of this rule is that once you have 10 mortgaged properties you cannot get any more conforming loans.If both you and your wife can qualify, each can get 10 conforming loans. 

She does not want to mess with mortgage payments or anything like that.That part of our family can be ruthless when it comes to someone passing on vs their possessions, so we would be looking to completely remove her name from anything as quickly as possible.Ideas on options? 

We currently own a new house that was built before we moved in, and it is in a developing neighborhood, we are going to rent that house out then move into the house we just bought and do a live-in-flip and possibly sell or rent after two years to avoid the capital gains tax on the profits.Our goal is to get as much stuff done to the house as we can before we actually move in because we have two small children and it will be rough trying to live in construction zone with these two crazy babies.So, so far we have taken out the whole kitchen, removed ugly tile in the living room and two bathrooms, and started demoing the laundry closet.

@Aaron Deane Many of the answers you are looking for can be found here:How to Effectively Conduct Joint Venture Agreements as a Real Estate Investor596231-how-do-i-properly-construct-a-purchase-with-a-partnership591376-create-an-llc-for-first-partnership-best-way-to-do-so526244-taking-on-partner-s-and-limiting-our-liabilitesGood luck!

Can I remove them myself?

She has not received any documentation to that effect but received a letter from an attorney offering his services to help her through the foreclosure.

It doesn’t sound like you’re Landlord knows the laws, or what to do, and is looking for an excuse to either bully you, or remove you. 

Or can we get a heloc now and have it not effect refi ing the house later for more inversting?

Your most effective path may be to find an experienced wholesaler and partner up with her.