Julia,if you decide to pull the funds from a retirement account prior to normal retirement age you will be taxed on the entire distribution amount plus you will have to pay the penalties.

@Chris Seveney, 80k was derived from a walkthrough conducted by my contractor. 4 months is based on the fact that the units themselves need mostly cosmetic work, and the basement being the biggest project.

If you use a Title company they will arrange everything required for the closing and coordinate the receipt and distribution of funds.

It is good to hear that you were able to derive such success for your transaction and inspires me to consider that it may be appropriate for me to dig a little deeper when I come across similar situations. 

The dispersion of all houses within the total distribution of the market could go much wider than that. 

You have two options:1) Take early distribution from your 401k.

Looking for a reliable, trustworthy company that does distributions on time.Thanks, Joe Koppel

If it is disregarded, such as an LLC, Then take distribution and use your personal investment account.

Normally you are only entitled to a deduction when you are legally required to make the payment.However, normally people would just list all the expenses on the partnership return and distribute the K-1 to the partners.

That being said we are deriving 80% of our revenue from Air BnB.