@Daniel DietzDistributions of pre-tax funds (as opposed to Roth) from retirement accounts are taxed as ordinary income based on the fair market value at distribution.Being that all the money that went in is pre-tax and had the benefit of growing on a tax-deferred basis (i.e., compounded growth over time did not have the drag of taxes) anything that comes out is income.The FMV is based on all factors that would impact the appraised value.

In fact, Section 1031 of the Internal Revenue Code specifically excludes "notes" from 1031 Exchange treatment.The sale, conversion or hypothecation of the seller carry back note would trigger any deferred gain that might exist in the note.

Thus, when you rent a house, it is better to repair a house than improve a house because improvement is not deductible (they are added to basis of the property) but repairs are deductible. 4)You can depreciate the rental portion of the house which can wash out most of the rental income that you otherwise had to pay taxes on. 5)If you ever plan to sell the house, personal home does not qualify for like kind of exchange but rental portion of the house might be qualified and defer the taxes on the gain on the rental portion.

For me, I want the cash out for the down payments on other properties plus rehab and I want a 1031 exchange to defer capital gains.I would like to hear some recommendations form those far more experienced than I on what options would be best to consider and structure.If I do seller financing, I would expect a down payment of some realistic amount, but if I do that, can I also refinance to pull out the cash I need for a down payment?

Go into contract as soon as you can even before you close the sale so you can close your purchase even during the 45 day period if possible to mitigate risk.It's easy to think of your reinvestment goals as a two part rule to defer all tax.  

you also want an experienced person to look at the existing lease agreements, deferred maintenance, or other red flags.There are probably a hundred more legitimate questions to ask but this should be a good start.

The problem was that the complaint was for just 106k. 60k principle had been deferred.

But I'll defer the judgment until after I will have received and reviewed at least 50+ leads from them.  

Which path is "best" will be specific to many details of your situation and goals.401(k) funds could go do a tax-deferred self-directed IRAIf you are self-employed and have no full time employees, a self-directed Solo 401(k) may provide additional benefits beyond just more control and flexibility of investment choices.In either an IRA or 401(k) format, you could also consider doing a Roth conversion.  

Hi @MichaelFriedman,How are you.Some good referenced neighborhoods depending on what your expectations are for buy in, cash flow, deferred maintenance and management of the asset along with the tenant.Your Riverwards Section (You are referencing Port Richmond) bears a different type of asset since there is heavy development from all sides also including $1B of new transportation.