How would John Smith know that Jane Doe's neighbors died and the family asked her to quietly liquidate the house?

You should keep track of your basis in the LLC as it will be important when you decide to liquidate/sell/dispose of the LLC.alternatively, you can label amounts to and from the LLC as loan payable/loan paydown.

The liquidity is all over the place: some of them have a five year lockup and others one year or less.

For example right now one of the businesses spray painted their name on the window with washable paint and they didn't do it very well.

I sprayed and my older tenants don’t seem bothered by the problem.

I'm 30 years old, have $79,000 in investments + $7000 in liquid cash, and want to build up a passive income that pays for a mortgage on a qualitative ($250,000) home, lets me drive a car I'm not embarrassed to drive ($45,000), and gives me the security knowing that if I ever have difficulty finding a job that pays what I get paid now, I'll never have to worry. 

Assuming market conditions are right when you liquidate.

Clearly buying 3 houses will give you the best long term investment however many of encounter problems and difficulties where we may need to liquidate our investments.

Let me know if anyone has a seller or investor friend who has been thinking of liquidating some investments!

All of our single family LTR investments since have been turnkey and none cash flow less than $450.Although I will also admit that we initially had to use the turnkey strategy because when we started out we did not have the liquid capital to BRRR.