Also the opportunity cost of not deploying your capital in an investment vehicle yielding more than 7% is high. 

You have to be up front about how the property is being used.Also, remember that umbrella insurance will not do anything for you if the underlying property or vehicle is not insured correctly.  

I recently started with a new company that is paying for my housing, vehicle, and fuel.

Better yet, encourage her to make a clean break....perfect time for a fresh start.Also townhomes are rarely a good investment vehicle. 

I have several vehicles and lots of stuff in general and a wife that would not be ok with a duplex.  

In a rapidly-rising interest rate environment (such as we've recently experienced) that tradeoff may or may not pay off.Unfortunately, in CRE finance there is no perfect financing vehicle and you can't eliminate risk--you must choose which risk you want.

And, factor in the depreciation and other tax benefits, deductions, home office, vehicle expenses, etc. 

I use a schedule E and do not have an LLC or business name, so can I purchase the vehicle under my personal name and take section 179?

Maybe you are needing a new vehicle for your real estate business - they can help ensure this vehicle is on the list that qualifies.

The building next to yours looks much nicer and has THREE security vehicles parked in front.