Also, assuming you have income somewhere else like w-2 income, those loses can offset some of that income. 

Fixeds would have me paying until that crash happens but HELOCs let me only pay when I use the money which I think is a better fit for my 'waiting game'.Of course, I agonize that maybe I'm just losing time by not investing aggressively right now with all the money I could possibly get but, for now, I'm trying to be more conservative (as opposed to the last five years of aggressive investing).

You can also get an umbrella policy for yourself, which I think is a good idea as it gives you a second line of defense before you start losing assets. 

Cons: We lose an incredible opportunity to inherit a property in a prime location (10 min from the ocean), 30 min from silicon valley, incredible appreciation, ready to rent, etc. 2.

With all park owned homes, you lose the power of the "homeowner" mentality and essentially have a lower quality apartment with high maintenance requirements, and the tenants can pack up and leave anytime. 

I told her time to go I was always  in contact with her .I even paid a buddy a 100 to haul her crap quick she was a money losing deal I needed to stop the bleeding !

You can still lose your investment in the LLC.

Unless the tax savings is large and secure (cannot simply be challenged to lose them), I would want a new cost basis. 

It can be tempting yes.But you should really weigh the risk, the amount of money you’ll have to offset from your appreciation by losing cash flow every month, the delays that can occur in corporate moves, a general downturn in the market, etc.

A big plus with your approach is you lower your risk of losing the property.