Pay off the Mortgage and pay off the Heloc with the Rent ($1000) - Expenses ($245), which with simple interest payments comes out to 4 yrs 6 months to have the house free and clear, plus you pay a micro fraction in interest over the less than 5 years.Then part 2 of his strat for advanced investing he called it, he said the typical lifespan of a rental is 7yrs between light rehabs, since you payed it off before the 7yr mark and it appreciated about 10% conservatively, you sell it, and do a 1031 exchange and roll the 100-120k profit into a house that the 60% down payment is within that last rentals sell profit or buy multiples and run the Heloc strat again. 

That may be a better strategy than wiping out the 401k and paying a large amount of taxes to have a smaller post-tax fraction of that savings available for personal investing.

Not that it would be the most ideal thing for most people, but if you're idea of paradise is a house overlooking a lake on farm within an hour of a major city, those are in ample supply all over the country for a fraction of California prices.I find that Denver is one of the nicest places I've been. 

Fractional Ownership - CRE, in particular, is characterized by a high unit price. 

In any case, if it is a fractionalized investment (a number of silent partners) it is probably done through an LLC, and the sponsor will produce a K-1 as pass through income, and will detail what kinds of returns and deductions are in that report.To fully understand this you should ask the sponsor and consult your CPA for the implications in your particular tax situation.

https://www.har.com/content/newsroom/Houston Real Estate Highlights in July: Single-family home sales rose 9.1 percent year-over-year, with 8,108 units sold;Days on Market (DOM) for single-family homes remained unchanged at 48 days;Total property sales increased 8.5 percent, with 9,559 units sold;Total dollar volume jumped 11.4 percent to nearly $2.8 billion;The single-family home median price rose 5.9 percent to $243,500, reaching a July high;The single-family home average price also achieved a July record, rising 2.4 percent to $305,910;Single-family homes months of inventory was at a 4.2-months supply, down fractionally from 4.3 months last July, but nonetheless at the highest level since August 2017;Townhome/condominium sales rose 6.1 percent, with the average price up 6.9 percent to $215,110 and the median price up 9.3 percent to $165,000;Leases of single-family homes fell 1.9 percent with the average rent up 5.6 percent to $1,916;Volume of townhome/condominium leases dropped 6.6 percent with the average rent up 7.7 percent to $1,666.

They will use a simultaneous exchange to go into a fractional passive property investment that are more readily available and and be scheduled more easily for a simultaneous type situation.

The owner is looking to liquidate all his assets and is willing to sell it for what I believe to be a fraction of market value. 

(to name a few):- RealBlocks (https://www.realblocks.com/), only for accredited investors, allows for secondary liquidity from P2P token exchanges for fractions of individual CRE properties- BuildingBits (https://buildingbits.com/), for both non-accredited and accredited investors, $100 minimum investing in individual CRE properties- Jointer (https://www.jointer.io/), for both accredited and non-accredited investors, allows you to tokenize your property by creating a land-trust and allowing Jointer to purchase equity in your property in exchange for cash (financed by token holders/investors who are debt financing at an interest rate equal to a CRE index), while you continue to manage your property and split cash-flow and appreciation profits with Jointer.

I had one company price me upwards of 15k for a cost seg, which is a little hard to justify if my CPA and I can do it for a fraction of the cost.