My goal is to put it into an investment that will depreciate enough in the first year to cover taxes at ordinary income rate on 300k. 

I believe the one that does my tax mentioned using scorp due to our income but i seen its not advised to put real estate under scorp

To take advantage of the deprecation against your regular w2 income. 

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.

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

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.

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

I have read several threads on this, but I am a newbie and still a bit confused.We are married filing jointly with an income close to 150k last year.

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. 

You'll have a reduced death benefit, as most of your premium will go to the cash value.