This is more of a financial advice question in order to prepare for the next deal. (We only have one STR and have had it for two years.) My husband and I each have retirement accounts through work, plus his 457 and my 403b. We're both 47, both with W-2s. We are closing on a HELOC on our primary home this week. Any advice on if we should use it to pay off our loans against two of our retirement accounts (that we took out for the downpayment on the first STR) in order to lower the monthly bills or if we can/should cash out one or two of our retirement accounts (457 and/or 403b) and pay off the loans?

We have been able to pay the loans back for two years so far and have three years left, but have one kid in college and two more shortly behind. We’re trying to figure out options and taxes/penalties/etc. Also, if we cash out the 457 and/or 403b and have taxes taken out, could those taxes be returned when we file our returns? Because of material participation (I self-manage)/bonus depreciation/cost seg, we’ve been able to get all of our taxes back both years so far.

We cannot keep going the way we have for two years, so that's not an option. The HELOC was the original plan, but it was going to take too long to close so we did this instead.

My 403b has a value of roughly 85k and has a remaining loan balance of about 22k… about $700 per month

My husband’s 457 has a value of roughly 180k and has a remaining loan balance of about 30k… about $850 per month

Since the HELOC is a variable rate, I'm hesitant to use a large amount from that. It starts at 8% rate. Debt payment starts at $14 per month for each $1,000 borrowed.

Also, I’m eligible to retire at 53 in Texas and will to work somewhere else.

Any advice would be great! I’m not even sure where to start. Thank you!