What happens to the supply/demand balance if they have to liquidate their real estate portfolios?...

There are so many nuggets of wisdom that I have learned through the podcast already it is ridiculous.I am currently looking to utilize FHA financing to buy a slightly depressed property (due to mismanagement, etc.) and refi/flip out of it to build capital for a larger property.

If you want to avoid tenant problems, I'd recommend trying to get larger units, even in the cheaper parts of town...they seem to keep tenants longer. 

These are primarily the larger waterfront homes and are being scooped for a relative bargain.

Did u make $5k in liquid profit & a passive income property?

If you live on the coasts, you might consider diversifying into the Midwest in areas don't crash as hard as the coasts.3) Liquid assets such as cash, cash equivalents, cash value in a whole life policy (if you can find the right one  in a non-direct recognition mutual insurance company), gold buried in a ditch, and tax lien certificates.

There are other concerns too though besides "wouldn't it be cool to do this, avoid some taxes, and use this pot of money I inherited" such as valuation and liquidity.

We do not have a huge amount of liquid assets though.I have started reading about master leases and small business financing.

Why not liquidate some of your stock or borrow against it?

You are looking at older housing stock, and subtle differences within larger geographic areas.