I guess as I understood it was that it would be a good idea should you not want to make a dent in your own liquid savings.

While it would reduce your immediate cash-flow, it will help liquidate some of the equity to continue to invest and diversify your risk.

I am nearly debt free, have about 20k liquid, and a house that I owe about 15k on that generates $850 a month income (this is my only debt)...I called my bank today and they said that I could get right at $68k for the house on a refinance and the payment would be $587 to include taxes and insurance...

All the seller cares about is that Buyer ABC submitted an offer with Proof of Funds showing that Buyer ABC (not Buyer XYZ) has enough liquid cash to complete the purchase.

If you liquidate more paper assets, it will bump your bracket?

Credit scores are solid and I have built up a good liquid asset base.  

Additionally, the bank will probably require one or more of the investors to have a substantial amount of liquid assets in their personal balance statement at the time of closing.

I have 15,000 in liquid capital.

I'm now trying to liquidate this property by selling because I have twins on the way.

I have 15,000 is liquid capital.