And its far better to lose 20 to 50k then to buy a project that wont work for any number of reasons but you wont know it does not work until yo spend the money. 

NO need to spend more than the fence costs.. the house is there already.. etc..  

If your are out of state, find a good property manager that you can trust to report the condition of the property (unless you really want to spend on an inspection twice a year).Based off your numbers: This property is not cashflowing.

We are thinking that rather than simply spend down her retirement funds to pay for this care that there maybe a way to invest in rental property in order to pay for a significant portion of that cost through cashflow generated from rentals.

I also purchased a rental home and I am going to end up spending 20-25K in rehab costs.

It's typically the new agents that have nothing going on that will go to the ends of the earth, finding the needle in the haystack property, to make peanuts.For finding deals on your own likely have to spend money to find unlisted stuff with marketing.

Avoid operation of a private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, racetrack, gambling establishment, or a store whose principal business is the sale of alcohol for consumption off premises.The 4th requirement is of particular importance with regard to the real estate company in your hypothetical. 

If you don't want to spend any time at all, maybe you could just partner with someone and they do all of the work and you put in more of the money.  

Is it OK to say the funds are for just spending/trips/cosmetic surgery etc?

Most wealth advisors are salesmen gambling with your money to make themselves a handsome commission .