I find that the cash flow would make this worth it but I'm concerned about how easily it would be to liquidate the property if needed.

The properties are owned by our LLC.Assuming nothing changes from the current tax perspective, what is the "smartest" tax-efficient method of getting this equity out of our investments:1) Cash out refi $1.6m (80% LTV of all the assets) and invest that money in a more liquid (albeit lower return) investment vehicle?

Using laminate (medium or high density) in kitchens, washrooms and laundry areas is always a risky undertaking.If the liquid is mopped-up promptly and you apply a dehumidifier and/or heat and ventilation you may be able to dry the laminate sufficiently that is does not cup or buckle.    

They will want to see your liquidity at having enough cash to be able to pay 6-12 months of interest. 

If you have a Lumber Liquidators in your area, they have a huge Spring Sale on flooring this week.  

I'll give you an example.....My first deal on my own (without a partner), I had about $40-50K liquid to put toward a deal. 

That portion could go towards providing future liquidity and/or buying additional assets.

We generally spray and back roll with a 3/4" nap roller. 

Most people I think should have over 30k of cashflow coming in per year and 100k liquid to make the jump.

You want to invest the money but have it liquid and build gains/interest.