It is not just the 10% penalty for early distribution that would apply.There may be significant advantages to keeping that money in a retirement plan and investing, whether you decide to retain the current tax-deferred status or pay the taxes now to convert to Roth status. 

In a high leveraged scenario, you can do a strategic default and return the property to the bank and retain the money that would have been tied up in the property as equity.    

For the NOI approach you just need to agree on what portion of gross rents each month are retained for capex and develop budgets to make sure everyone is on the same page.

All services property managers do on retainer now other services do for a fee. 

Berkshire just did 3 massive stock buybacks in less than 2 years with its retained earnings.   

I would concur with people who say retain a good real estate attorney.

I even offered attorneys a $5,000 retainer to just hear me out.

I was told I had a case but the guy was asking for 10 thousand retainer lol Laugh 😆 

You retained him and kept with him all the way through everything and only now, everything done set to close, ONLY now it's an issue and not one where you want anything addressed, anything answered for, no the only act is "how can I NOT pay this bill I owe". 

Poverty grinds people down and even working with people enduring poverty grinds people down (landlords, social workers, teachers, ministers, whomever...).In class D neighborhoods, it is possible (though sometimes difficult) to find and retain tenants of good character AND for tenants, finding landlords that do a great job maintaining decent housing and that treat tenants fairly are rare.