One alternative may be for your father to take a loan from his retirement account.In order to be able to do so you father would need to be separately self-employed (although not necessarily on a full-time basis as I know that he just retired).Regarding taking a 401k loan: If your father is self-employed with no full-time employees & he could set up a Solo 401k, rollover the funds and take a 401k loan from the Solo 401k.He can borrow up to 50% of the balance not to exceed $50,000.The repayment terms are equal monthly/quarterly payments (as you prefer) of principal and interest (e.g. prime + 1%) spread over a 5 year term (or longer if you will use the loan to purchase your primary residence). 

May not be wise financial move.Certainly can rollover into self-directed IRA, which can be used to invest in real estate. 

If you are able to roll over your employer 401k and IRA's into a solo401k and/or self-directed IRA, you can invest in real estate ventures with those accounts, but you cannot benefit or profit from those properties in the form of personal use or personal income.

Every seller who has said yes to me has wanted to roll over there money into another property to avoid these taxes or cash out via refinancing.

But I was thinking the same thing @David Ribardo, I hope Allentown is not expecting Landlords to just roll over and take the hit without it having an effect on their tenants. 

Once the account is set up and funded through either: a transfer, a rollover or a contribution (or mix of those things) they simply follow the custodian/administrators process for investing.

@Jordan MoorheadGood recommendation from @George Blower you can roll over the 401k later if you want alternative investments.

The one DIS-advantage to the SOLO401K is that you can NOT do a 'roll-over' from an existing ROTH IRA into one.

You could roll over the 401k into one of these products and avoid the 10% penalty?

Although these were specific commercial lines of credit on one year roll overs.. but five year call is the same thing..