I wish I had the experience to use your strategy.

We are looking to do long-term rentals for a buy-and-hold strategy, starting to build up our portfolio and gain momentum. 

Quote from @Gregory Schwartz: I have 2 very close friends who grew well beyond 2 rentals with this strategy. 

It would be wise to ask your CPA the capital gains exposure once this strategy is being executed.

I think you should seriously consider your financial goals and strategies.

Educate yourself with resources like The House Hacking Strategy and practice analyzing deals using tools like BiggerPockets calculators.

I guess the different strategies FOR ME would be.A- Find a lender that would actually do the refi and pay the tax.B- Sell a property and use those funds to lend as they would go back to the IRA. 

You might consider other strategies, like taking a home equity loan or refinancing to fund repairs, but consulting with a tax professional or CPA would be the best next step for your specific situation. 

Recommend talking to your CPA about this strategy. 

A good lender should be able to piece together a strategy with you, whether that's cross collateralizing or not, underwrite each option with conservative numbers.