But if you can help it, find deals where you can pay for the whole property and also the rehab with your liquid capital instead of getting a loan to secure the deal.

Through going public with an IPO, investors will be able to liquidate shares of the company they'll own in exchange for investing in the company.If the company is sold versus going through an IPO, it'll offer them a proportional share of the sale in proportion to their initial investment in the company.

Keep in mind that real estate is not a liquid investment. 

We had some roadblocks in terms of being able to show enough liquid assets to support 6 months of funds for the 4-plex, and 3 months of funds for my first house.

Besides my part time job working on a golf course, my only other source of income comes from an online ecommerce site that I created 2 years ago (which generates me around $1000-2000) a month on average and a liquidation business that I have started with a friend of mine reselling returned/used Home Depot items.

But these numbers look terrible compared the return/liquidity/ease of just doing SP500.What markets do you invest in?

If you need to liquidate and we're in the middle of a recession, you would be in trouble.

Securing assets that are less liquid, and therefore, less impacted by a recession is another great reason. 

Sure it happens but most investors with little liquid and unfamiliar with future plans of the area can't afford the risk.

Lumber liquidators has some great products.  20 mil, lifetime warranty for there tranquility line.