Interview a few professionals and get proposals to compare.   

The 401k can accept rollovers from any other qualified retirement plan except the Roth IRA (for now, there is proposed legislation so that this restriction may be removed in the future). 

Once you know this area  better, I am sure you will see that what you proposing will not work here.  

Address your written offer/proposal TO THE OWNERS  c/o their listing agent.   

@Jade Smith under your proposal, you would probably need an agent license to work with a broker.Hopefully, you have a copy of the regulations that allow your interpretation of California licensing requirements and didn't depend on someone's opinion:)

Someone please advise differently but here is the scenario they proposed; buy a house, renovate, put tenants in.

But...I ran a client-based business for 25 years and when I ask myself if I really want to do that again—all the business set-up, marketing, value propositions, proposals—just to get some of the joy of property management, the answer is no.The idea of going into debt to buy more properties is very scary,  especially at today's interest rates, but maybe I should look more into how to make that happen in a way that would work for us since it'[s what I'm really interested in.Sorry for the off-topic take!

Then a General Contr. giving you an actual proposal with an exact dollar amount to remedy ALL of the violations.Only then can you (or anyone else for that matter) be able to decide if it is financially better for you to hold the house and eventually recoup your losses, or cut the cord and dump it now.So unless you already know that you are going to move on, then your next steps are clear and cost you nothing. #1 - The City, #2 - A GC 

Due to the negative equity in the deal, if the Buyer ever wanted to sell, for whatever reason, the Buyer would have to either "short sell" or wait until the house appraised for more than the proposed sales price of $446,018.40. 

It's a proposal.