HELOCs often have lower interest rates, and the interest may be tax-deductible if used for investment purposes.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

Consult a tax professional to optimize deductions and explore strategies like Real Estate Professional Status or short-term rental loopholes to apply depreciation to non-passive income.This post does not create a CPA-Client relationship.

The interest being deductible is based on the use.

You also get peace of mind knowing it's done correctly, that you're not missing any deductions and that you won't get audited.Good luck. 

It’ll make life easier when it’s time to deduct from the deposit at lease end.

Income taxes- if needed can you use your 2 year primary residence deduction if a taxable event occurs.13.  1031-  if any part of the insurance claim is a taxable event is there some way to do a 1031 with lenient time frame adjustments?  

Bigger Pockets is a great place to find a real estate tax accountant.A good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.I recommend finding an accountant who specializes in real estate taxation, business taxation, financial planning and tax planning.You may want to consider working with your accountant remotely to expand your options.I would also recommend looking for a accountant willing to work with you throughout the year.

When you contribute to a Solo 401(k) as an employee, those contributions are made on a pre-tax basis, which means they are deducted from your gross wages before FICA taxes are calculated.

Since part of your property is a rental, I believe a portion of your mortgage interest should be a tax deduction unlike your other debt.