Take a distribution from the retirement account over the years where it doesn't hit you up to the next or higher tax bracket.I.E. if your income is $80,000 and the next higher bracket is at $100,000, you may want to take a distribution of $20,000 from the retirement account to help you fund your real estate purchases.

However, after meeting with a friend who has real estate experience he mentioned that he predicts in about 12-18 months there will be a downturn of the market and an influx of foreclosures due to the pandemic forebearance.I now feel like our momentum and excitement has come to a screeching halt and I am unsure of whether or not to invest in this market.I understand long term the market works itself out, however, if I bought this multifamily unit on my current income, I cannot afford for the rental market to depreciate as well which is my fear.The mortgage would be about 4K.

@Rob BlockI have been invested with Kirkland Income Fund for a year now, and am very satisfied. 

Not like it's vacant and you have no income on it.

What I also did though was give the borrower a PFS and information that showed I could pay this loan and had the ability to pay the loan whether it was generating income or generating no income. 

I've also had one potential tenant tell me that "an income requirement of 3x the monthly rent basically disqualifies single-income families".

You might be able to join our tribe through Prime Corporate Services.

If you want to use your income to underwrite the loan then you will have a longer seasoning / waiting period as those loans have different rules compared to loans underwritten by the rents / DSCR loans. 

Previously loan officers have not been very optimistic, probably due to her income. 

(You act as the bank)Charitable giving to offset gainsTransfer the home into a trust (Like a CRT for example) that will avoid capital gains tax and you can have pay you a set income stream until your death and the remaining funds would go to charity.None of this is or possibly could be advice, I don't have enough info to fully know what is "best" but these are some ideas to think about!