I do not currently have a ton of liquid cash, but I would be willing to take out a loan from my meager 401K to finance a deal if necessary.

Comps in the neighborhood for 3/2 no basement with normal lots are around $160k-180kcant use comps for normal lots with this one.. apples and oranges so long as you know U do not have a very liquid investment unless you deeply discount it.. then you have all the facts..

Elicia, We are in contact with an investor looking to liquidate 19 rentals.

So your liquid equity in a refi is really only maybe $20 - $30K. 

I would just choose a high interest savings account so your funds are at least somewhat liquid.

If building is frame, you might consider installing blown in cellulose or spending more and installing sprayed in foam. 

I've found most investors in this circumstance don't want to take the property back and instead want their funds to be liquid and diversified.

Plus the investment is liquid, and you can even forego the $200 monthly contribution if you must, with the house, you're on the hook for 15 years. 

This does create a small tax liability on the portion of the income that is derived from the borrowed funds.One of the biggest concerns would be maintaining enough liquidity via reserves and/or income to meet your needs to take required distributions from the inherited IRA.So, certainly worth taking a deeper look, I would suggest.

Your FICO and the asset are the main factors but the lenders also like to see some liquidity so you may need at least 6 mos. worth of payments in reserve.