Does it make sense to sell the condo and liquidate the equity to buy investment SFHs? 

If local tenants it is very important to review liquidity and net worth.

The hold period tends to be short (3-5yrs) due to investors need for liquidity as the way financing is structured. 

At any rate, in the event of a default or bankruptcy, I would personally take my lumps on that individual loan if necessary but I've already mitigated the potential damage by performing the requisite due diligence at the time I acquired it, factoring in the balance owed on the 1st position along with the cost of liquidation and whatever potential I can assess for the underlying property to lose value.That said, if I am buying a note to keep, I've always preferred firsts.

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Demonstrate to the client that you as an agent and  understand contract engineering - how to write in the clauses to protect your client and how to control real estate and to be knowledgeable of creative financing; check funds, delayed settlement, options, possession, auctions, subordination, substitution of collateral, mortgage discounts and hybrid offers as well as joint ventures and liquidation by auction without ownership.** As a new agent - (write this now) your best client is YOURSELF - represent yourself - get out there and in the market - look at 20-50 buildings (houses, commercial, businesses with real estate, lots and land) - know more about your local market (and sub-markets) than anyone else in the area - you need to know the estimated value of properties in your marketing area - (if someone gives you a street name - you should be able, off the top of your head to know the value) be the most informed of zoning changes, tax sales, foreclosures, auctions, the county's master plan, study expired listings - talk to real investors (not those turkeys who just took a GET RICH REAL ESTATE COURSE.Buyers and Sellers are liars - they will waste your time, eat a hole in your wallet, run you around, make bad offers, call you at all times of the day and evening - they will be demanding - you don't need to baby sit with people who can't make a wise decision! 

It sounds like you're suggesting the possibility of liquidating / exchanging some assets as an option. 

We barely have the money for DP and liquidity post closing.

I would take a look at what your PITI would be after the refi and include vacancy, savings for cash reserves in case of eviction, cap ex and maintenance these are probably small on a newer house but make sure you at least have some liquid reserves.

An A Paper borrower normally has at least two months mortgage payments in "liquid reserves".