The purchase price, construction/labor costs, and ARV are all higher here in California than most states so I already have a high tolerance for risk and have the necessary liquidity to scale. 

Rolling an SDIRA back into a traditional IRA is possible but may involve liquidation costs and administrative complexities.

Who do they reach out to FIRST (realtor, estate liquidators, or )?

If you need additional liquidity for other deals or if you could get a lower rate now, then it could make sense.

Single family homes are the most liquid, and small multifamily properties should have a better yield. 

Of course, you also have limited liquidity and control.I am a full time passive investor, so I am clearly biased - but passive investing might at least be worth a look. 

However, if interest rates continue to decline, I might consider refinancing some of them to improve my liquidity position. 

And (B) it's a beautiful setup for big probability of snagging it post default, be it from the regional bank who financed it or whoever J.P. has entertaining liquidations when they take over asset's of the regional lender. 

Has anyone used window liquidators in montgomery IL?

Once you have the equity in hand, you will have multiple routes to explore, it's just a matter of time when and how you liquidate!