In other words, I already have a checking and savings with BoA, but I would create a 2nd savings account (within my regular account) and put all the rental properties last months and security into that account (combined).Is this the correct way to prevent co-mingling of funds, or what would you recommend?

We deliver our properties free of both (noted as such in the lease) and then contractually make the tenant liable for prevention/termination. 

Even if you make all of your payments on time there are times when something happens by accident or a collection pops-up and drops the credit scores. 

The tenant understands that the property of the Tenant is not insured by the landlord for damage or loss of any kind (action of third party, fire, water, theft, vandalism, storm, heat or cold, electrical damage, pests, mold, accident, etc.), and the Landlord assumes no liability for such loss.

It's a small Motel at the beach no clam or accidents.

What are the odds of a vehicle accident resulting in a settlement greater than vehicle liability will cover?

2) dropping a vape in a toilet mid stay is clearly an accident.  

These policies also cover you in all other areas of life like car accidents as well.

You might ask about a backflow preventer on just the tub.

When that same accident happens 6 times in a year it would start to look a little less "accidental".