The first option is to convert your vacation home into your primary residence. This would require you moving into that home for at least two years. The second option is to convert your home into a rental property and exchange the home with another rental property. If the exchange is done properly, you'll avoid capital gains taxes, but you'll still have a rental house. If neither of these sound appealing, sell the property and pay the taxes.
Capital gains are always better than capital losses.
The five-year time frame applies to the date the Roth IRA was opened, not the date of deposits. Let us hear from you.