The amount you receive from ordinary income (401k distributions) is combined with your social security (after you start collecting) and due to its ordinary income status, can cause you to pay taxes on SSI....reducing your available income at the whim of the government....in retirement when you don’t have many options to generate income in a typical retirement situation.If you’re working a W2 for a while, and investing in your 401(k) at the same time-getting the match-you’ll be contributing to social security taxes today, and will be “entitled” (ie, forced to take) them later.Also, a lot of 401(k)s have 1.5%+ fees in the generic options...enriching Wall Street to almost as much as yourself with “free money”.I recommend you read “The Power of Zero” by David McKnight and “401(k)aos” by Andy Tanner.

Preferably we would like to structure this so that reduces or eliminates the tax liability.

@Tony Hershiser working for yourself likely won't reduce your hours :) You've received some very good advice.

If you take it all, or part of it out, the return is reduced proportionally to the dollars you left in. 

This cost is really impacting my cash flow as you can see and since moving the location of my rental is not an option, does anyone have a recommendation for insurance providers or other resources to help reduce the annual cost of the rental insurance? 

I'm a newbie, soaking up info and education, and want to meet others who have the same energy and ambition.

If your.contract gives you an option period for inspection, you can tell the seller you need to reduce your offer.

DO NOT GO THE CHEAP ROUTE with a chuck in the truck builder or you will pay for it with your time, stress and energy. 

I also like the tax benefits, especially the bonus depreciation, and the reduced liability risk since we are passive/LP investors.

It has solar panels and currently producing enough energy where the electricity bill on this 5,500 sqft home is only 25/month.