A few other thoughts:
For the rental house that you sold, did you factor in the gain from the depreciation? If not, your Gain would be larger than that, and the tax on the depreciation is taxed at your regular tax rate (up to 25%).
You said "we" are exploring options. Is this your personal tax return, and you are filing as Married Filing Jointly?
Do your expenses for the apartment include depreciation?
If you "actively participate" in the apartment rental, you are limited to using $25,000 of losses per year (if your income was over $100,000, it would be less than that or nothing). The rest of the loss will carryover to next year.
