The money and any purchased property will remain inside the IRA (you cannot live in a property owned by the IRA).

You could use your VA for $200K and use FHA for the remaining $100K.  

The 2008 Crash did destroy the value of my Rentals, but, I continue to work my way out of that hole with my remaining properties, which have all recovered and greatly appreciated in value.

I'm driving myself crazy going back and forth on choices and could definitely use some insight from folks with more knowledge and experience.Here are the numbers:2012 Purchase Price: $106,7502016 appraisal: $265,00030 year mortgage, $94,627 @ 3.75% (PITI $785.80/month of which $84.50 is PMI that will be gone in May)Remaining mortgage balance: $78,600Rent: $1250/monthI'd be supremely grateful for any thoughts anyone could offer, and I'm looking forward to the discussion!

I can only take 20k out leaving the remains 20k still in my retirement fund.. will they count that as reserves?

The inner city areas remain an unresolved issue and many people are moving either downtown or outside of Milwaukee county to escape the high property taxes.

Proceeds from the trustee sale will go to payoff the 2nd and if there is any remaining the balance will go to the now former property owner. 

I was planning on crashing on a friend's couch for the couple days before closing and then living in the new property for the remaining time.

I would pay my brother off his share (we agreed he would only get $20,000), and I would take the remaining. $25,000.

From Nolo.com and if your rental is in North Carolina: "If you don’t have a legal justification to break your lease, the good news is that you may still be off the hook for paying all the rent due for the remaining lease term.