You mentioned that you might want to Airbnb the addition?

Like you mentioned, its hard right now to find something in a "A" neighborhood like West Loop that will cash flow after all your costs considered (PITI).   

As Brian already mentioned...you're always at risk for the due on sale clause if it's written into your mortgage.

Can I ask if the terms I mentioned are comparable to what you have?

I believe this would all be taxed at ordinary income rates since it is a distribution from our IRA (plus 10%) penalty if you have not reached retirement age (looks like retirement age since you mention RMD).   

If you sell for $325k and then buy a replacement prop for just $200k (as you mention), you've basically taken that other $125k and paid off your loan, leaving you debt-free.

Not to mention that using a 1031 exchange to sell to a related party will require both the related party and the parent to hold the properties they end up with for a minimum of 2 years.2. 

I looked at a 2 fam property for a client and the price difference in insurance was absurd compared to the additional rent, not to mention pool up keep.

@Graham Williams there will be lots of lenders who say that they can do lending in Texas and there are certainly a lot of good banks out there (some mentioned above have good reputations). 

I had the property Sandwich Lease Optioned in 1 month with cash flow to me of $400 per month with the aforementioned $10,000 down and selling for $30,000 more than the Seller was asking.