If your insurance coverage isn't enough, they could seize the LLC assets, but not your personal assets.Additional thoughts:1.

With cash reserves, it just seems like a $500 annual difference in coverage to have RC vs ACV is trivial.

Mobile seems perfect for the small stuff, for bedroom, bath, kitchen, dining where you  can install  appliances, hvac, electrical, and plumbing in the factory - supplemented with  a kit based barn style garage and storage with large open plan living room above.   

In my mind, I need to supplement my income or find a higher paying job. 

Having the HELOC would be a supplement to these reserves, but I would avoid using it as the source of a down-payment as the interest is variable and often much higher.

Right now for small Commerical loans in the Kansas City market under 7M I’m seeing 5.5-6.25% on 25 year amort, 5 years fixed, 20-30% down, amount down depends on debt service coverage ratio (usually needs to be at least 1.25) and borrower qualifications. 

That being said, I have no idea how the MLS you are looking at (remember, there are MANY MLS systems out there with overlapping coverage --- NJ has 12...) is reporting the info. 

Also, I'd love to hear any additional ideas to earn supplemental income from a property (I'll be living in the home and can easily manage).

Is there a type of  landlord insurance that will offer dwelleing protection, liability coverage and, premises medical protection etc. to a landlord living in the house with tenants that rent by the room?  

If both tenants have policies with $500,000 in Liability coverage there is $1,000,000 total potentially available for a claim.