The rents are too low to support long term capital expenses (roof, new furnace, etc).

See the following regarding the IRA distribution rules. https://www.irs.gov/publications/p590b

See the following regarding the IRA distribution rules. https://www.irs.gov/publications/p590b

I would be interested to hear your thoughts and the supporting data/ analysis. 

This would be a great question for your CPA.On a cash-out refinance, the deductibility of the interest is subject to the interest tracing rules.

Although i have reasonable amount of cash to get this business off the ground, i just struggled to get the numbers to work (ie sufficient cash flow from buy and holds to support my life without a W2 job). 

There are certainly no guarantees you won't get a bad tenant, but I wouldn't completely rule out an area because of the current laws.

I did property management in CA (years back) and I remember there was no rules or regulations.

It is ordinary and necessary for real estate investors to notice wear and tear from year to year and claim "depreciation" on their properties.The rule that your accountant is referencing to is the "real estate professional status" which allows you net losses from your rental activities with your other income if your adjusted gross income is above $150,000.

My question is, are there any rules preventing me from working exclusively with investors?