I already had a really stable renter set up before I even started looking for a property.

You have an easily fixable problem, which is your credit management, whereas most people have issues in getting the cash reserves to invest or a stable income.

If repaid on time, there is no early distribution penalty or taxes.If the plan is to take retirement funds as a distribution and not pay back, then there's going to be a number of factors that will determine the tax treatment (example: if you're still employed, if it's a 401k with current employer, current financial situation, your age, what the funds are used for, etc...).A financial advisor or tax professional with all your specific details should be able to help provide a plan to reduce your taxes and penalties accordingly.

The building is 98% leased stable and profitable.

Assisted Living aka older retired folks the mixed rentals are ok, but need some sort of live in nurse/management to prevent or attempt to prevent bad situations....Co Living long term rentals are ok and are actually becoming popular. 

Sadly we did lose a retired couple booked May 1st for our Florida home as the wife has apparently contracted Covid-19, but another qualified couple immediately jumped in, & we fully refunded their deposit.Given a choice PM's may be looking at the 'essential worker' monicker from now on but hopefully this pandemic is a one-shot phenomena, at least for a few more years. 

I would recommend against going to the "warzones" and focus on working class, relatively inexpensive but stable areas.

I got into RE investment as a (hopefully profitable) hobby mainly to occupy myself in my retirement here in Mexico. 

A great BiggerPockets podcast episode to listen to would be episode 276 early retirement!

She was in her late 40's early 50's and in a career which she would have taken to 62 and retired with pension/401k etc.