It's pure speculation and most people will get burned.

Even I open a window in winter if I burn something in the kitchen.

I don't love taking HELOCS to burn, but if you have 500k in equity, you can safely use up to 250k to buy another property and probably get one that cash flows well by not living there.

We are negotiating for a mobile home, he listed it at 40k, but when we offered that, he then negotiates for 42k.

In the case of a successful tort against you, you might regret commingling funds in a single bank account, but I can't see how keeping them consistently separated would ever burn you, even if it is a bit less convenient.  

Speaking of Islands, do you have any contacts on Dauphin Island below Mobile? 

So when that TARP 2.0 comes, it will be directed to the big banking entity/ J.P. to "save the commercial financing world", to "create liquidity" which is a giant smoke and mirror trick because that TARP 2.0 is just added profits, the asset's are coming back liquid already, it's the LP's and regional bank and the regional bank investors who get burned, bad. 

I had an investment property that burned down recently.  

That being said, I'm part of an experienced Syndication Group who invests not only in Multifamily, but also different asset classes:  Self Storage, Mobile Home Park, RV Park, and Retail - all to diversify the investment offerings.Reach out, and the next time we have an LP capital raise, I will send you the OM (and obviously info on our company) to review.

I've been burned by this once before, but it's just less stress on me with this informal policy.