Concerning health effects:

I use a respirator when painting with KlassKote and when using automotive paints. Both are known for health effects so use a respirator. I got mine at Harbor Freight for about $25.

Wet sanding with 2000 grit sand paper doesn't take off much paint. I use it primarily to knock off the dust.

After the wet sanding I will use some white compound and a small buffer. This step gives the depth that you see in a car finish.

I've used Hobbypoxy and SuperPoxy in the past. The automotive type paints go on about the same.