You, my friend, are what is known as "cash-poor." You have a massive net worth, but it is all tied up in tax-deferred and illiquid vehicles. You are so enmeshed in large debt and large expenses that despite your very large salary, you had to take out a mid-five-figure 401(k) loan to cover everything you wanted. So now that you have a cash crunch, you are up shit's creek.
Your saving grace is that you have a year to unwind this whole mess. So, first things first:
1. Read the fine print on your 401(k) loan. Most of those are immediately due upon termination. If that is your plan, your first priority is scraping together the $44K you need to pay that off ASAP.
2. Rental houses 1 and 2 appear to be crap investments. Ergo, they are your first target for long-term rebalancing. Sell them. Even with realtor commissions, that gets you around $800K cash. If you can find better investment properties, that's great, do a Starker exchange to defer taxes. But even if you have to pay taxes on the gains, you're in a better position with a mid-six-figure accessible 'stache.
3. If you get the loan paid off and the houses sold, now you have the headspace to breathe and think, because you have enough cash to cover even your ridiculous mortgage for several years. This is what you need to focus on rather than making huge life-changing decisions in a panic.
4. Under no circumstances are you to cash in any part of your 401(k) or fail to pay back that loan on time. It is a huge triple-whammy: you pay taxes at your current (high) income tax rate on whatever you withdraw; you pay an additional 10% penalty for early withdrawal; and you lose having both that money and the next several decades of compounding of that money available for retirement. You have a NW over $3M. There are many many other ways to cover (or decrease) your bills.
FWIW, it looks as though you have decided that you want to grow your wealth through a RE strategy, which is fine. But you're doing it wrong. You have WAY too much equity wrapped up in those homes, particularly given today's mortgage rates. Those homes are going to increase in value the exact same amount whether you have 1% equity or 100%, so why lock up cash that could be going to another investment instead? And you aren't getting nearly a good enough return to justify the amount of money you have in them: a good RE investment will clear you a decent profit after PITI and maintenance/upkeep/vacancy costs (not even counting the "paper" benefits of the tax deductions for the interest and upkeep costs); if they increase in value over time, that's just an added bonus. So if you want to continue on your RE strategy, use your time off to do some significant reading up on how the real RE businesspeople do business.
I am sorry this has happened to you, but if you manage it well, you could end up a year from now both happier and wealthier. We went through something similar and made a bunch of mistakes, and I never ever want to deal with that kind of stress again. But in retrospect, it was a fantastic lesson for my spendypants DH, who never really understood my fixation on living on one salary until 1.5 of the salaries went away. It sucked for a couple of years, but those lessons set us up to do massively better over the next 15 years.
Tl;dr: you have built a financial strategy that was based around you maintaining your high income level for many more years, until (presumably) you have the various rentals paid off and can live on the income. You have just discovered that life often doesn't go as planned. So use your free year and $200K to revise your strategy to protect against this kind of downside risk.