This lowers my taxable income and my taxes on operating income.

Here are some options and considerations:Loan Against Equity/ETFs:Margin Loans:Description: Margin loans allow you to borrow money using your investments (such as stocks or ETFs) as collateral.Pros:You retain ownership of your investments.Generally quick access to funds.Interest rates can be relatively low compared to other types of loans.Cons:Your investments are used as collateral, so if their value declines significantly, you may face a margin call (requiring additional funds or securities).Interest rates can vary and may be higher than traditional loans depending on the lender and your creditworthiness.Securities-Based Line of Credit (SBLOC):Description: Similar to margin loans, SBLOCs use your securities (stocks, ETFs) as collateral, but they typically provide more flexibility and may not trigger margin calls as easily.Pros:Allows for ongoing access to funds as long as your collateral remains sufficient.Interest rates may be competitive.Cons:Similar risks of potential margin calls if the value of your securities drops significantly.Terms and interest rates can vary widely among lenders.Comparison with 401(k) Loans:401(k) Loans:Description: Borrowing from your 401(k) allows you to access funds without selling investments, using your retirement savings as collateral.Pros:Typically low interest rates.No credit check required.Interest paid on the loan goes back into your 401(k) account.Cons:Usually capped at a percentage of your vested balance (commonly up to 50% or $50,000).If you leave your job, the loan may need to be repaid immediately or could be considered a taxable distribution.Potential opportunity cost of missing out on market gains if funds are withdrawn from investments.Other Alternatives:Home Equity Line of Credit (HELOC):Description: If you own a home with equity, a HELOC allows you to borrow against that equity at typically lower interest rates than unsecured loans.Pros:Lower interest rates compared to other types of loans.Interest may be tax-deductible if used for home improvements (consult a tax advisor).Cons:Your home serves as collateral, so failure to repay could result in foreclosure.Personal Loans:Description: Unsecured personal loans can be used for various purposes, including investing, but typically have higher interest rates than loans secured by collateral.Pros:No collateral required.Funds can be used for any purpose.Cons:Higher interest rates and stricter eligibility criteria based on creditworthiness.I am a loan officer and we do some of the loans stated above.

If you miss that deadline (because of a failed sale or a tenant that won’t move out.) it’s all taxable, if you move back in to it as your primary it’s only a pro-rated tax free gain when you eventually sell.

@Joe WoodThe distribution from the IRA to yourself is a taxable event.

Can I use this negative cash flow as property losses every year to reduce my taxable income, or not since I make over $150,000?

Assuming that the units are the exact size, you taxable gain would be allocated 50/50 between the owner occupied unit and the rental unit. 

Depreciation: For investment properties, you can depreciate the property over a set period, reducing your taxable income.5. 1031 Exchanges: This allows you to defer capital gains tax by reinvesting the proceeds from a sale into a similar property.Feel free to ask any questions or share your own experiences!

Once you get to around $14k you're going to scale up to $37% but you can deduct half the expenses and depreciation which will reduce your taxable amount of income..again without knowing the income this is not possible to calculate.   

Can I designate a non-spouse (business professional partner without a job) as a real estate professional within the LLC (both of us would be on the LLC) and then use this to offset my W2 taxable income?   

You have to include the capital gain from the sale of the property which will likely put your taxable income above $89,000.Some of the capital gain will be taxed at 0% and the remaining will likely be taxed at 15%Do not forget about state taxes.