I’m in the 33% tax bracket through my real job and this could be a big difference in taxes owed if we sold the property?

Ok, yes that's a bit cheeky but seriously, your talking about some very important, regulatory/law stuff, if your not willing to do the most simple basic actions of simply googling the laws, and reading through the statutes, I am sorry but than my time and effort has not been earned to help guide. 

What's even more frustrating than asking the IRS help desk, is asking a Turbo Tax "Tax Specialist".

I recently analyzed an asset of vacation cabins - where the seller would earn 23% ROI over a 5 year term.   

Three Months ago, low to mid 6's were available.Rates are going to continually fluctuate but if you have a way to earn 10+% on your capital, the TIME you are not using it is going to cost you way more than the extra .5% per year will.You are walking over dollars to save pennies if you are waiting for the perfect rate, half of the people who held out on getting mid 6's were waiting for high 5's.

Focus on tax-saving strategies such as cost segregation studies and bonus depreciation to accelerate deductions.By qualifying as a Real Estate Professional (spending 750+ hours annually and materially participating), you can offset your wife’s S-Corp income with real estate losses, reducing your tax liability.

Often times you will pay much more in taxes than if you pulled the money out, paid the taxes and penalty and then started investing in real estate.For example, with the financing you mentioned, the IRA must pay taxes on the portion of the profit earned by financing. 

@Tyler Speelman, A 1031 exchange solves the tax issue. 

Quality furnishings, attention to detail, and seamless operations helped set the property apart, maximizing its earning potential.

Active investors absolutely have ability for higher returns, but at some point it does impact your primary job earning power.