That’s a complicated set of questions but it insures you get past every reason it would be taxable.

Retirement distributions are considered taxable income(Federal and state).You mentioned self-managing the rental properties so it may be that the income will offset against the rental loss.However, you will still be subject to the 10% penalty.Have a conversation with your CPA and ask them to draw you up a draft of several different situations and see if that is something you want to move forward with.

Pay no taxes as its a non-taxable event.2.

Oh got it, thanks for the explanation.I am not an accountant or attorney but from a  law point of view I believe that as long as the equity is bound in the property it is not realized capital gains so it won’t be taxed.You could structure it as a deferred payment due at some point in the future making it taxable at that point.

Option two would be cheaper from a lending perspective.

The quote was cheaper, service was responsive.    

You should know the rules inside out or be working with the professionals that know it.Incorrect moves can result in not only a taxable event to you but to your investors.Based on your most recent response, i do not think you have a good understanding of1) requirements of the QOF(You may need to substantially improve a property)2) How long you need to hold a property before it can be sold to exclude the gain3) Inside basis vs outside basisBest of luck

Refinancing 1 property is cheaper and easier than refinancing 2 properties to get at that money. 2.

Land further out; usually cheaper, but the more rural the harder to get tenants and rent up. 

(Not that they actually set mortgage rates - but they influence them.)You now know that as you look at 2/1 houses that anything priced near or above $145,000 isn’t worth pursuing in the short term… so you look for ones that are cheaper than that.