Personally fond of the Roth and the life insurance for liquidity, have both myself. 

But that's a totally different kind of business and you generally need a lot of liquidity to be taken seriously. 

My first approach is to just tell the tenant to buy a wasp spray and spray it (if small), I would credit the rent that amount with an invoice (and bill to owner out of the reserve account). 

Need to be more liquid to cover the constructions costs. 

He's partnered with multiple investors on other projects, and has proposed that I go in with on a smaller flip so that I can have some experience going through the process and we can both make a little money.I have about 50k liquid in my savings right now, and hes proposed that I put down 5-10% percent to go in with him on an upcoming flip.

I knew that the worst thing that would happen was I would lose 20k and maybe have to liquidate the assets before I finished the rehab.

I have approximately $45k liquid equity in my current rental property, and $63k in my home, along with an operating LOC of $25k that hasn't been touched.... would you say that it would be wiser to use those monies to invest in the next deal, or use more outsider monies so I don't max myself out of available cash beyond comfort in case it is needed in the interim? 

When it crashes, give it a little bit and plenty of people will either panic sell, be leveraged so much that they're forced to sell when something small goes wrong or have to liquidate to finance other issues they're having.

I know the owner really well and he was working on liquidating his portfolio. 

That way you can use the cash you need now and always pay down the loan when you've stabilized and have some income and you are more comfortable with having less liquidity.