The cash you have on hand in liquid reserves allows you to focus on properties that "Are Not" turn key and could use a little TLC or renovation. 

I would do treasuries rather than CDs for liquidity and the slightly better yield, however I believe I have to keep it in a bank.

The only caveat I will throw into this is liquidity.

I cant tell you how many rescue loans Ive underwritten for small businesses who relied on a LoC for liquidity and then had the line frozen or called unexpectedly.

If I had a large amount of liquid capital, do you think I should use it to purchase fixed assets or for some project development, which would be more suitable?

@Tom HallAt 7% if you can I would pay it down as investing it net after tax gains may not get you the 7% you are paying - so it’s less riskDownside is you lose liquidity of that money as it’s tied in your propertyIf rates come down in future you can refinance and even take some of the cash out.Regarding your question are rates coming down, a lot of factors come into play but right now it does not appear there will be significant changes to rates over next 3-6 months.

Basic q - do I have to liquidate to pay him back in cadh OR can I use the stock to pay him off?

We were also able to recover $1,550 in liquidated damages from that resident which meant that you were not out of pocket at all for that property turn.

Repaying debt is not necessarily aligned with achieving financial freedom - true FI is cashflow coming from many assets - hopefully this illustrates how paying off debt drains your liquidity for down payments of money to buy said assets.

But as Dominic mentioned this will be full doc Move your liquidity to that bank as deposits are critical to these types of lenders..