During RLT administration (after the death of the grantor), it is common for Trustees to liquidate/convert stocks or other capital assets shortly after the death of the grantor.

I like REITS because of their liquidity.

With the lower LTVs offered by senior lenders these days, it may be tempting to look at preferred equity and it may make sense since technically it is cheaper than LP equity, but also keep in mind they have a higher liquidation preference (obviously) but will often want all the cashflow (or a majority of it) to come to them before the LP investors and will also want large reserves, so make sure you model out the cashflows and understand the end-to-end deal with the preferred equity investors.We have some institutional investors with whom we did a combination of a pref and JV deal and it worked quite well for everyone including them and the LP investors.

If you have no liquidity I highly doubt a lender will approve your loan request.

You might want to think about pulling up the carpet and taking a look. (2) Maybe the water delivery piping under the floor, hot or cold, has developed a pinhole leak and is spraying onto the subfloor from below. 

A Heloc can "Never" be used as a "liquid" or PITI reserve which is required to buy investment properties.

I got news for you, most people in the U.S dont have not even $50k cash let alone $300k cash liquid.......................

For investment properties most lenders will just be looking at your Fico, liquidity, and experience.

There are clearly downsides - the investments are even less liquid than active real estate, they are completely out of your control and they are long term in nature.  

Liquidity is very important now.The hard work lies in acquisition and execution.