The alternative is to set up a self-directed IRA, or better, a truly self-directed Solo 401k plan, invest in alternative assets, and then do the conversion.

If you sell, it will cost you a lot of $$$ Plus, you best asset is the interest rate.

Just because the costs might be in the furture does not warrant not budgeting for those known expensesThen there is the misc costs of asset protection, bookkeeping, unexpected utilities (such as between tenants (tenant turn over) or failure not attributable to the tenant such as slab leak).  

As long as the property generates enough cash flow, you may qualify based on the asset alone.Another route is to explore portfolio loans from local banks or credit unions.

You don't necessarily need to replace it with exactly $140k in debt, as long as the total purchase price meets or exceeds your sale price and all the proceeds are reinvested.Using Proceeds as a Down PaymentYes, your $300k could absolutely serve as a down payment on a larger property, like a $1.5M asset, depending on your financing.

Quote from @Justin Jefferson: Hi my goal is to also create ownership and build my assets for the future.

So it crushed us cashflow wise because we couldn't finance anything and all of a sudden I'm too asset heavy and cash poor.

Whatever you buy you likely won’t keep it down the line as you better define your investment strategy, so my advice is to pick an asset that’s going to teach you the most in the quickest amount of time.

These are people that are property managers not asset managers.

My first question is why did a cash flowing asset lose it's cash flow?