Retired- use 401k for investment properties?

[Kathryn Chapman]

I recently retired and have funds in my 401k that I would like to use for down payments or even outright buying investment properties, maybe STRs. I would like to maximize losses to offset the income tax when I pull out funds from my 401k. I have a pension and other side job that put me over threshold to deduct passive losses against active income (enter looking at STRs). Any advice to reduce taxes on the money I withdraw from the 401k for real estate? Thanks!