This will reduce her monthly obligation and her overall responsibility.

It does cost more to establish checkbook control initially, but will reduce operating costs over the long term. 

Equity does not increase cash flow it reduces your ROI. $100K in dead equity has a opportunity value of 10%, mortgages are at 5% therefor to save $416 in interest you are losing out on $833 in income. 

To reduce the risk of being unable financially to support your family while moving into a different field, you could consider househacking or buy and hold. 

It has been very easy for me to rent out places in West New York. last time it took us 10 days to have new tenants move in. the low vacancy rate helps to reduce the expenses. 

If it's so beat up that you can't get an institutional mortgage on it, that'll lead to a significantly reduced market value - this is where people willing to take out HML until it's fixed up enter the picture.If it's on the MLS, it'll go for market value.

Or can I refi something, reduce debt for cash flow.

You could reduce risk of the unit not being taken care of by inspecting.

I would like to learn more about vacation rentals as way to reduce the expense of something I want, rather then as a way to make money. 

Without vision we won't know how far to go or not.When times to decide the big stuff like whether to expand or downsize, leverage up or reduce down, evict, hire, fire, partner, etc - your why and mission and vision will guide you.Aligning your mission, vision and purpose is easier said than done, of course.