My gut instinct tells me one thing so I am seeking opinions and advise.

@Jessie RandolphOf course, if you take a distribution from your retirement account you will have to pay the taxes and (likely) penalties.There are possible alternatives which would allow to you use these funds without paying taxes or penalties.First, you may wish to consider transferring the funds to a self-directed 401k or IRA which will allow you to invest in real estate without incurring taxes or penalties.

Also, some will do Replacement cost while others only do Actual Cash Value for how they payout on the loss.You should probably seek quotes from an independent agent.

Learn the ropes and then start to actively seek and grow a multi-family business if that is the goal. 

Here are the numbers:Purchase Price - $45kRenovation - $17.1kHolding Costs (To Date) - $3.5kList Price - $99.9k 15% Down Payment Closing Costs & Points - $4.5kAt the end of the day this wasn’t the expected home run deal most newbie investors like me seek.

Additionally, we were hoping that either A) The new Bankruptcy Case will get dismissed or B) His Bankruptcy will go through and he will be granted a Discharge, after which we could then seek an Order of Possession (AGAIN). 

I’m seeking any professional and/or legal information on forming a Real Estate Wholesaling Contract with Doctrine of Equitable Conversion based in Pennsylvania and New York State.

The only thing to be careful of is your pre payment penalties (which are steep) and your up front costs for legal (also steep).

Finally,  when you feel ready, seek out an experienced operator to partner with. 

I believe real estate is the vehicle for change that I seek.