As compared to investments in Wall St where you typically have to liquidate assets in order to generate distributable cash, this can be an advantage.

I can always liquidate the furnishings in my houses and transform them into traditional rentals if things get bad.

Do you plan to hold for 20-30 years or would you like to liquidate at some point?

You'd have to liquidate it, transfer it, sell itc, etc while winding it down.  

Leave as is and/or increase rent at next opportunity and scrounge up enough capital elsewhere (I have over 10k liquid and available but not sure yet how much it takes to really get rolling in the business)Lastly, as one of my goals is to build a portfolio that provides passive income over time, the reason I'm somewhat inclined to sell or other option is because I believe it is nearing its peak in value without investing and updating it.

The cost of doing this likely far outweighs the tax benefits of personally owning rental property that you would gain.Leveraging the properties in the Solo 401k to create some liquidity for additional investments would likely be a better strategy, so long as the spread between what you are paying in interest on the non-recourse mortgage and the interest you can earn lending the money is sufficient.  

He is saying that we would be structuring a no money down or low money down mortgage based on combined liquid net worth.

Fitch states that the statuary damages “may not” exceed “$4,000,” yet until government administrators put this in writing, mortgage liquidity will continue to set like concrete.The industry needs to know exactly where they stand when writing loans, not where they may stand.

I am a fan of stripping out the equity to reinvest,  just not liquidation of what you have to them go get what you had.

That being said, I cringe at the idea of throwing all of your eggs into this basket (no liquidity), over-leveraging to buy more properties than you can afford, not maintaining adequate cash reserves, etc.