There is the those that have to sell and yes they are probably selling it distressed or a forced sale- but as you mention if you look at this listhttps://www.nmhc.org/research-insight/the-nmhc-50/top-50-lists/2023-top-owners-list/These companies may have some strategic liquidations but they can ride this thing out.It’s the syndicators who promised people cash and took at short term debt because they played the lottery thinking they could flip a multifamily building thinking prices always go up and cannot now handle the debt burden.

i don't like the lack of liquidity in a syndication. 

In short , any rate/currency hike is causing liquidity crisis causing delay in ground up project even for project that was approved 2 4 years before the rate hike….

Taking an asset to liquidate is a significant hassle, loaded with additional expenses, time oh-so-mush time, and variables such as potential market movements, changes to condition etc. all these come together to very possibly devouring what your equity positions may be in full or more, leaving no real equity of securitization itself. 

BTW, There is nothing wrong with your mom buying herself something nice with a portion of the money if she does liquidate the house.  

When you do a cash out refinance its cash in hand (liquid reserve) so it can be used as an asset or for PITI reserves on the next purchase.The other downfall is if your credit score should drop for any reason which can happen even my accident or mistake the lender will close or reduce the Heloc credit limit.

I got frustrated with all of it so eventually liquidated the IRA. 

You need enough supply/demand to actually create liquidity.

The outstanding balance after 5 years (60 payments) will be approximately $364,814.The buyer would need to pay this amount at the end of the 5-year term, typically through refinancing or other financial arrangements.Using the Promissory Note for Financing in Florida:The promissory note valued at $400,000 from the sale can be used as collateral.Assuming you can get a loan of 75% of the note's value, you could potentially access $300,000 to assist in purchasing your new home in Florida.This detailed scenario underscores the potential benefits of seller financing, such as generating additional cash flow and converting equity into liquid capital for reinvestment.

Any vice, any backhanded thing you can think of, any trap, any costly mistake, I have seen it in product liquidation business.