Might depend on what other assets you have and your estate plan too, and your risk tolerance. 

Hello,I have 6 investment properties overall and am having difficulty obtaining a-line of credit on one of them because of the banks’ limit on how many rental properties you can have to lend to you.

Also recently obtained to building lots in Arizona. 

I am very excited about obtaining my first property and starting  my real estate career

Taxable income, which is shown on the K-1, is NOI minus loan interest, minus depreciation and amortization, minus partnership level expenses (such as sponsor asset management). 

That brings us to the hardest catch for people to handle, the process of obtaining and approving the contractor bids is currently taking 60 to 90-days.Overall, you can't beat free $20k.

First, if you are able to invest in your own market and make a respectable return AND have the possibility to own appreciating assets, my advice would always be to follow that path.  

In 2022 we are planning on grouping the profits from the options that get exercised and doing a 1031 exchange into larger, higher cash flowing assets.

The biggest disadvantage of S-corp is when you want to transfer an asset in or out of the S-crop. 

And then using what's left to payoff probably relatively low interest loan that you have on your rental and loosing interest write off deduction doesn't sound like a wise financial move...Why don't you consider setting up a self-directed IRA, moving your Vanguard IRA in there and then invest passively in trust deeds (or some other alternative assets).