Considering employer (5-6%) match and time on the 401k, the 10% may not be as big of a deal when its used to pay down 5% debt.  

We're both self-employed, and I assume reno loans will be harder to come by.  

You have time on your hands now that can be put to work building cash flow and wealth instead of selling to an employer at a fixed price.Look into commercial real estate.

Getting any sort of financing is hard when you are self employed, and you will need 2 full years of tax returns with self employed income to qualify for a loan.  

That's why I suppose the industry employs so many different trades.  

My balloon is $55k due in 6 months from now. 4plex is worth about 140-170k currently.My problem is that I am self employed and dont't show much income at all.

No, you are not an entity, you are self employed.  

Underwriters determine the answer by analyzing and reviewing the borrower's employment, income, debt, and asset statements.In particular, underwriters will take a close look at your debt-to-income ratio.

@Cameron Skinner,  do you have to be self employed to be eligible for a Solo 401k? 

Watch the market place forums too, it's the "Count Down To Launch" LOL.There are several types of conventional options, the "full credit", "step up", "financed option" (actually 2 ways), "set up option" "declining credit option"  each having acceptable variations and the American Option (a favorite of the gurus) and the European Option described, both may employ aspects of the different types.